How to Apply for Home Loans in India

Building their own home is a dream that most Indians share. In fact, it is one of the most highly valued dreams too and rightly so. With real estate prices rising and falling constantly, along with changing interest rates and banking policies, home buyers need to be especially careful while financing their homes.


Home Loans are pretty much a mandate today for engaging in a transaction that involves as much money as building or buying your own home. Here’s how the process of applying and disbursal of home loans work:


Home Loan Process:

Applying for a home loan:

By providing a formal application for a home loan, along with your personal details the bank will judge your eligibility for the loan that has been applied for. Click here to Understand Home Loan Eligibility. The bank will also require a whole set of documents including:


ID Proof

Address Proof

Age proof

Proof of educational/professional qualifications

Employment details

Bank statements

Proof of income

Pan Card

Property details

Paying the loan processing fee:

For commencing and maintaining your home loan, banks charge a processing fee that usually amounts to somewhere between 0.25% to 0.50% of the entire loan.


Applicant scrutiny and verification:

This process involves the bank gauging the applicant’s ability to repay the amount that is being borrowed. This is based on the amount the applicant would like to borrow, as well as the value of assets that is in possession with the applicant. His/her regularity in the payment of previous loans that they were taken will also reflect on their eligibility.

After evaluation the bank will decide on the principle amount that they can grant as loan.

Drafting Home Loan offer letter:

if the bank is satisfied on all counts regarding who you are and your ability to make payments, they will proceed to draft an offer letter. It will contain details of the loan, such as:


Sanctioned principle amount

Interest rate charged

Fixed or floating Property Loan Interest Rate charged

Loan tenure

Method of repayment

Terms and conditions

Special schemes

A signed acceptance copy is then provided to the bank if the applicant finds offers acceptable.


Property verification:

Before disbursal of the loan, the bank will ask the legal documents pertaining to the asset in consideration to be turned over for inspection.



If all of the above mentioned processes have been cleared, then the Home Loan will finally be disbursed.

Every new business treats the customer as king. Hence, despite the long Home Loan processes that are usually involved in getting your own housing loans sanctioned, banks today go to great lengths to make sure that there is as little hassle for the customer as possible.



Author: homeloan

Use the interactive Home Loan EMI calculator to calculate your home loan EMI. Get all details on interest payable and tenure using the home loan calculator.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s