Getting a Home Loan In India - PowerPoint PPT Presentation

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Getting a Home Loan In India

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Decided on your dream home and now have to raise the funds? Fortunately bank loans are not as difficult to get as they used to be. Log on – PowerPoint PPT presentation

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Title: Getting a Home Loan In India


1
Getting a Home Loan In India
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Decided on your dream home and now have to raise
the funds? Fortunately bank loans are not as
difficult to get as they used to be. Its still a
slightly long process, but then its always
better to know that everything has been checked
thoroughly rather than keep having to run around
every three or four months. Here are the steps to
go through
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3
Application
  • You need to fill up an application form which
    will ask for your basic information such as
    address, employment details, income, education
    and so on. The form will also ask for the
    property details like estimated costs etc. They
    will also ask you to submit verified photocopies
    of certain documents such as
  • Income proof
  • Age proof
  • Identity proof
  • Address proof
  • Employment details
  • Proof of educational qualifications
  • Details about the property if finalized
  • Bank statements
  • These are for security-both yours and the banks.

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4
Processing fees for home loans in India
  • An important thing to note about home loans is
    the processing fee. Banks charge a processing fee
    for every home loan application. This fees is non
    refundable. The processing fees varies from bank
    to bank and is generally between 0.25 to 0.50
    of the loan amount. This fees is used by the bank
    to start and maintain the home loan process
    including completing the various formalities
    during the entire period.

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Evaluation and Verification
  • Once all your paperwork is in, it takes a few
    days for the bank back after going through your
    application and deciding your eligibility. If you
    pass this stage, a field verification begins for
    which they send representatives to talk your
    family and neighbours as well as your colleagues
    to verify that the information you have provided
    is correct. The references provided in the
    application are cross checked and verified

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Repayment Verification
  • The bank now verifies your repayment capacity.
    After reviewing your credit records and bank
    account details, if convinced that you will be
    able to make payments every month, the bank
    sanctions your loans. The sanction can be
    conditional or unconditional. If the sanction is
    conditional, youll have to fulfill the
    conditions imposed before the loan is disbursed.
    If they feel that you will not be able to pay
    back the loan, they will not sanction your loan.

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Offer letter for home loan
  • The bank then prepares an offer letter which
    contains the following detail
  • The amount of home loan sanctioned
  • The interest rate applicable on your home loan
  • Whether the interest rate is fixed or floating
  • Your home loan tenure
  • The mode of repayment of the home loan
  • If any special scheme applies to the home loan,
    its details
  • The terms and conditions associated with the home
    loan
  • If you find the offer attractive and agree with
    all the facts mentioned in the offer letter, you
    will have to provide an acceptance copy to the
    bank. This is generally a duplicate of the offer
    letter signed by you, provided to the bank for
    its records. If the bank charges any
    Administrative fee, it will have to be submitted
    at this stage.

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Property Verification
  • The bank sends representatives to verify the
    property you are looking to buy. For this, you
    have to submit the original property documents.
    These include the title deeds, no-objection
    certificates and other documents. The bank
    conducts a legal check so as to verify that the
    property has a clear title and the home loan is
    being disbursed to the right person and for the
    right reasons. Banks dont lend for disputed
    properties and for titles where ownership cannot
    be easily enforced.
  • Along with the legal check, banks also sends
    experts to the location of your property to
    conduct a technical valuation. If the property is
    under construction, the banks verify the stage of
    construction, quality of construction, progress
    of construction, locality etc. and evaluate the
    property on established parameters. In case where
    the property is ready or is being resold the bank
    verifies the ownership, maintenance, age of
    property, quality of construction, locality and
    required legal clearances. The banks have
    qualified valuators, which assess the value of
    property on various parameters and decide on the
    amount of loan
  • The sole purpose of all this is to ensure that
    the property has a clear title, is technically
    sound and meets the valuation standards of the
    bank.

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Releasing the money
  • . Once the formalities are completed and the bank
    is satisfied with the legal, technical and
    financial valuation of the property, the
    registration process for the home loan begins.
    The legal documents are to be prepared on stamp
    papers of required denominations in a format
    approved by the banks lawyer. The home loan
    agreement is then signed and you need to submit
    the post dated cheques for the agreed term. After
    the home loan agreement the loan disbursal
    process begins. Depending on the home loan
    purpose, and the agreed type of disbursal (lump
    sum or in stages), banks disburse the home loan
    amount

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Contact UsMIDTOWN STRUCTURESBeside Adarsh Palm
Meadows,Opp.Skylark GreensRamagondanahalli
Borewell Road,Whitefield, Bangalore, KA
560066Ph 080 6050 2244Cell 91 99000 57 610,
99000 57 620USA Contact 1 913 738
4010info_at_midtownstructures.comhttp//midtownstru
ctures.com
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