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  • A Guide to the Home Loan Process in India
    May 27, 2018

    Opting for home loans to purchase the dream home have been increasingly common in India. Even so, many are unaware about the processes involved and the regulations governing the approval of a home loan.
    Here is a comprehensive guide which helps manoeuvre through the complicated home loan process in India.

    Step 1 – Home loan application

    The submission of the formal application to the bank is the first step in the procedure. Along with personal details, banks require documents like proof of identification, age, address, education qualification, profession, income; bank statements, pan card, property details and employment details.

    Step 2 – Loan processing fee

    The bank will charge a non-refundable processing fee to the expenses for commencing and maintaining the home loan process. Some banks have started to waive the processing fee in an effort to attract prospective applicants.

    Step 3 -Verification

    It is the process of the bank then to verify and evaluate an application on the basis of the facts and credentials supplied and also to determine the principal amount the applicant is eligible for.

    Step 4 – Assessment of repayment capacity

    Verification of the repayment capacity is one among the crucial step in the process. The application can be approved or rejected depending on the applicant’s ability to repay the principal amount with interest on time.

    Step 5 – Home loan offer letter

    The process moves further with the bank issuing an offer letter which includes details such as the sanctioned amount, interest rate and type, loan tenure, repayment mode, applicable schemes and other associated terms and conditions.

    Step 6 – Property verification

    The bank will verify the property in question along with its documents like title, no objection certificate etc. Evaluation varies according to the phase in which the property is – under construction, ready to be sold or resale.

    Step 7 – Disbursal of home loan

    When all the above-mentioned processes are completed satisfactorily, the bank commences the registration of the home loan. The associated legal documents should be prepared in the format approved by the bank.

    Ladder Kerala, one of the top names in luxury flats and apartments in Calicut, offers the choicest of address in their premium flagship project Ladder Mankav Greens. Offering home loans at an attractive interest rate of 4.99%, the project makes dream home into a reality and redefines it with a prime luxury statement.