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
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.