H1-Process After Acceptance of Home Loan Application

H1-Process After Acceptance of Home Loan Application

Step-1: Processing Fee: Payment of non-refundable Processing Fees, which is a certain percentage of theHousing loan amount, limited to a specified amount.

Step-2: Investigation: Physical verification/validation is conducted for the information provided by the applicant.

Step-3: Credit Assessment by Bank: Clearly establish the repayment capacity of the applicant based on the credit report, income, age, employer and nature of business for self-employed, work experience, etc.

Step-4: Offer and Sanction Letter:

a) Maximum loan amount eligible for

b) Rate of Interest

c) Tenure

d) Loan Type: Floating, Fixed, Overdraft

e) Repayment Mode

f) Other Terms and Conditions

Step-5: Documents Check and Legal: The original documents are submitted like Title deed, NOC from legal owners for the legal check.

Original documents remain with banks till complete loan repayment.

Step-6: Valuation of Property: The valuers are appointed by the bank to ascertain the true market value of the property and then based on the value of the property loan amount is determined.

Step-7: Property Registration: The sale agreement between the previous owner and the borrower is stamped and registered. The original copy is to be held in possession of the bank.

Step-8: Disbursement: Bank and the borrower sign the agreement. Post dated cheques are submitted by the borrower, and the loan is disbursed as per the sanction letter.

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