Getting a home loan is an arduous process requiring a lot of knowledge about the financing industry and huge patience. The challenges for you begin melting in stages as you go on working out on the loan-taking process. All your hardship will end up in the final stage when home loan disbursement is made. Owning a home is everyone’s dream but a few can realize it. There are a lucky few who have the financial backing to move around and make the down payment and to arrange for the payment of EMI without default. India is a vast country with a whole lot of difficulties for its people, and the most disturbing one is the one associated with finance. The story doesn’t end there; you must have the right knowledge and resources to expedite the process. If you hire a consultant to guide you, you have to be extremely cautious because the guy might cause burning holes in your pocket. Of course, many banks come forward to give you advice and guidelines but they are a few and far between. It’s like searching a needle in the haystack. If you apply for a home loan at the SBI, there are SBI home loan disbursement stages you should be enlightened on.
The final stage of the entire process of loan is the disbursement. There is a property’s technical appraisal done by a team of experts appointed by the banks. The disbursement will be made after technical appraisal, documentation and the payment to be made by you during the initial stages. You have to request for disbursal only after the due process has got over. You can make this request online or offline. The payment of money can be made in stages. The bank will ensure at what stage the construction of a property is. If it is being completed, a partial payment will be made followed by further payments in stages. If the building is complete in all respects, full disbursement will be made by the bank. There is a system of housing finance companies sending you the statement of account showing details of the EMI instalments paid, instalments disbursed, and some other details. A home loan is a very first step to fulfil your dream of being an owner of your home. The step of disbursement you look forward to having may take some time. At the disbursement stage, the lender makes the payment to the seller. The seller can be a person selling resale property or a builder. You get a new property from a builder. A lot depends on the terms and conditions of the agreement of home loan you have entered in with the banker or a housing finance company. There is a home loan disbursement process for under-construction property. It is different from the process for a resale property. There is DHFL loan disbursement for a loan from DHFL.
DISBURSEMENT PROCESS
Housing finance company shall disburse the loan following certain stages:
- The technical appraisal of the property should have been done
- Legal documentation must be in place
- The down payment has been made
You should request disbursement. You can do it online or offline. For an offline request, you have to visit the relevant branch of the organization disbursing your loan. For an online request, you should visit the bank website and for that, you need to know the id and password. You may have to create them after submitting your mobile number and the OTP sent to your mobile phone. Your loan account number, ID and password are unique to you. They should not be shared with anyone. You should click on the “disbursement request” tab that appears on the screen. Now, you should give or submit “contribution details”. For this stage, you should upload the receipts. You have got to upload the details of the property under which you should say whether the property is under construction or at what stage of construction. If the property is under construction, you should inform on the phase of construction. You should also furnish the demand letter of the builder and the certificate of the architect. You should also provide the payee details. They are the details of the builder or the seller. You can request disbursement from your home.
The lender considers the construction stage for releasing the payment of disbursement. In case you are the candidate for full disbursement, the EMI will begin in the month following the month in which the disbursement is made. There will be a disbursement schedule attached to the loan agreement. You may have to pay the ‘pre-EMI interest in case of partial disbursement. The EMI will begin after this step.
The home loan disbursement procedure
Submission of documents: This is the first stage. You have to submit a printed copy of offer letter that contains property documents is required for disbursal of loan.
Legal validity of documents: The property documents like your initial payments, receipt of payment, NOC, and sale deed is examined by the legal experts. You may be asked to produce some other documents.
Amount of Down payment with date: It contains the down payment date and the amount of the first instalment.
Verification Property: There is a process of legal and technical verification of property. There is a sanction letter containing the terms and conditions.
Loan Disbursement: The loan will be disbursed after all the documents have been verified.
Check Disbursement of Home Loan with Every Bank
Disbursement of HDFC Home Loan
HDFC disburses the home loan after due completion of ascertainment of property value, documentation, and the down payment made. You can request the bank after the payment of down payment. The bank may provide in multiple instalments or one instalment. It varies with the terms of the agreement. When it comes to multiple instalments, the bank can ask you to make the payments for pre-EMI.
SBI Disbursement of Loan
The steps are as follows:
You must offer all the important documents to bank. If there is a mortgage, it should be made in bank’s favour.
There will be document verification. It will be done thoroughly. There will be a valuation of the property. The bank will give a property valuation letter only after the valuation has been done. There is a step of E-stamping. The agreement of sales and agreement of construction have to be stamped. After the due completion of these steps, the loan will be disbursed.
Disbursement of Axis Bank Home Loan
You are needed to present all the documents. These will include your income proof and property-related documents. It is compulsory to apply for a home loan.
The bank will check the documents submitted by you. They will verify the authenticity of these documents. They will also see whether you are eligible for loan or not. There is a technical officer appointed by the bank. He will do the property valuation and will give you the valuation letter. The bank will disburse the loan if it is satisfied with all the papers so produced by you. DHFL check the customer’s eligibility. It carries out the income verification process. It checks the validity of it. The bank will examine credit report and fixes the amount to be disbursed to the applicant of the loan. If verification of income and credit check are all right, the bank will give a conditional loan. A letter of offer will be issued by the bank. There will be a technical assessment of the property. A lot depends on this assessment. The property that you are pledging will undergo a scanning. It will be validated by the concerned experts appointed or hired by a bank. There is a lawyer who does the legal assessment of the property under pledge. A due validation and verification process is warranted and the loan disbursement will happen only after this.
If you want to purchase a piece of land, there are provisions for a loan for this also. the loan will be used only for buying a plot of land. You may buy this land as an investment or for constructing property on it. The loan amount sanctioned by the banks for purchase of property is about 80 to 90% of the value of the property. You can apply for a home loan in case you wish to buy a bungalow, flat, or a house.
The loan amount depends on the type of property, its cost, the location, the paying capacity of the borrower, his creditworthiness, and some other conditions. The loan amount can be disbursed at once or in stages. The way varies from bank to bank. You should visit different banks to find out the most suitable lender for constructing your dream home. You may apply for a loan in case you wish to renovate your house. You are entitled to a loan if you wish to expand your home. NRIs too are eligible for home loans. The terms and conditions for them will be different.
Also Read:
Repo rate linked home loan HDFC
RBI home loan interest rate 2020
How long it takes for a home loan disbursement?
It’s not at all certain. It is bound to vary, and it varies from case to case. It may take between a few days to a few weeks.
What is the loan disbursement process?
The first step is document submission. The next stage is legal verification of documents and the examination of the down payment details. There will be a verification of property details. Finally, home loan disbursement is done.
Can home loan be cancelled after the disbursement?
The loan is not eligible for a cancellation after the disbursement.
You should check all the documents you might be asked to produce before the lender. You should also move around and find out the most suitable lender for yourself. You should be particularly mindful of its stature, goodwill, government support, tenure of the loan, flexibility of repayment, and so on. When you move out to see different properties in the market, it’s a good idea to take the help of some professionals. You can hire their services for some fees. It will be worth the expenses because you will be protected against buying a dubious property or getting involved in a legal tussle with the lender.
What is a disbursement?
This process is about payment of money by the lender to the loanee. The disbursement might cover the cost of running a business, construction of a house, buy of property, purchase a piece of land, and so on.
