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C-HL-01

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  • 1. Processing of Home Loan
  • 2. STEP 1 - Submit an Application form along with relevant documents • Application Form • Processing Fees Trainings by Vidya Bhagwat
  • 3. STEP 2 - Verification of the property and supporting documents Documents For borrower & guarantor – self attested copies • Identity Proof (Passport, Driving Licence, Voter I Card. Pan Card, Employer’s I Card) • Address Proof of all Borrower/s and Guarantor. (Electricity Bill, Phone Bill Etc.) • Proof of date of birth of Borrower/s and Guarantor • Education qualification proof of Borrower/s • Pan No of all Borrower/s and Guarantor • Income tax return/ Form 16 for the last three year for all Borrower/s and Guarantor (Most Important Document, used Trainings by Vidya Bhagwat to calculating your loan eligibility)
  • 4. STEP 2 - Verification of the property and supporting documents • Latest salary slip for salary class / annual package letter / current ctc letter (Most Important Document, used to calculating your loan eligibility) • Bank statement for last 6/12 months where the salary is credited for both Borrowers • Marriage certificate. (This will increase you loan eligibility, Very important) • Bank statement of existing loan accounts(Car loan, personal loan etc), if any, of borrowers and Guarantor since the beginning. • Personal assets and liabilities statement ( Include Xerox copy Trainings by Vidya Bhagwat of Insurance Policy, Demat Statement, Mutual Fund statements, Statement of other accounts etc)
  • 5. STEP 2 - Verification of the property and supporting documents Property Papers: (All in Original for Disbursement of loan) • Allotment letter from Builder • Agreement to sell / builder – buyer(BB) agreement • Payment receipts of payments made to the builder • Tri Party Agreement (TPA) duly signed by Borrower/s, Builder and Bank. (keep a xerox copy of TriBhagwatAgreement with you Trainings by Vidya Party as well)
  • 6. STEP 2 - Verification of the property and supporting documents Documents for NRI • For availing home loans, NRIs have to full fill certain conditions according to provisions of the Income Tax Act. • 3 Months salary slip. • 6 Months Bank Statement in which salary is credited. • Identity Proof. • Indian Pan Card. • Passport. • Visa Letter. • Stayed in India for more than Vidya Bhagwat more within an Trainings by 182 days or assessment year or should have stayed in India for at least a total of one year or more
  • 7. STEP 2 - Verification of the property and supporting documents • Indian Residential proof and foreign residential proof. • POA (Power of Attorney) on the name of authorised signatory. • Visa Letter. • Stayed in India for more than 182 days or more within an assessment year or should have stayed in India for at least a total of one year or more • Indian Residential proof and foreign residential proof. • POA (Power of Attorney) on the name of authorised signatory. Trainings by Vidya Bhagwat
  • 8. STEP 2 - Verification of the property and supporting documents For Security: (All in Original) • Mortgage of property for which finance is being given. • In case of purchase of house/ flat from Builder where mortgage cannot be created immediately (e.g. Under Constructed Property), a tripartite agreement shall be executed amongst the Builder, borrower and the Bank. Trainings by Vidya Bhagwat
  • 9. STEP 3 - Sanction of the loan (usually on the 7th working days after Step 1) Loan sanctioning/Loan sanctioning letter: • After the above few steps the bank will give you the loan sanctioning letter. It has the details of the amount of loan sanctioned by bank. • Final loan amount sanctioned and your loan eligibility are two different things. Once you know what you are eligible to get, you can decide on the loan amount. • Just because you are eligible for a huge sum does not mean you should borrow heavily. The loan sanctioning letter is an important document, keepsby Vidya Bhagwat be useful if there Trainings it safe, and may is any dispute.
  • 10. STEP 3 - Sanction of the loan (usually on the 7th working days after Step 1) Check the following in the letter: • Loan sanctioned amount • Interest rates (Fixed or floating and related to which reference rate e.g. Base Rate) • Tenure of Loan • EMI Amount, mode of payment (Cheque or ECS) • Conditions/Charges on prepayment of loan • Special scheme if any available. • Validity of the Loan sanctioning letter (Generally 6 months) • Any other terms and conditions.Bhagwat Trainings by Vidya
  • 11. STEP 4 - Submission of the original Property documents and signing the loan Agreement (usually on the 8-10th working days after Step 1) • You will be required to leave the title deed of the property with the company as a security for the loan. • You will be required to go to the company’s office to execute the legal loan papers. Trainings by Vidya Bhagwat
  • 12. STEP 5 - Disbursal of the Loan Cheque (usually on the 10 –15 working days after Step 1) • You can draw the loan in parts depending on the stage of construction of the building. • Until such time that the entire sanctioned amount is NOT drawn, you will pay a simple interest on the Actual Amount drawn (without any principal repayments). • The EMI payments will commence only after the entire Sanctioned Loan Amount is drawn. Trainings by Vidya Bhagwat
  • 13. Loan disbursement/Property Assessment Legal Check • Every bank conducts a legal check on your documents to validate their authenticity. Hence, sometimes it helps to buy property from a reputed developer since they know the process inside out, and keep all the documents upfront. • •Home loan is also the cheapest way to get the property assessed by an individual as Property documentation in India is still non-transparent. • •Thus home loan assures that the property you are buying has all the legal titles clear, and your investment is safe. Trainings by Vidya Bhagwat
  • 14. Loan disbursement/Property Assessment Technical check • Banks take utmost care in their plan to finance the property. They send an expert to visit the premises you intend to purchase. • In case of under construction property • • Stage of construction is the same as that mentioned in the demand given to you by the builder. • • Quality of construction and satisfactory progress of work. • • Layout of flats and property is within permissions granted by the governing authority. • • The builder has the requisite certificates to start construction at Trainings by Vidya Bhagwat the site. • • Valuation of the property in relation to other deals in the surrounding areas.
  • 15. In case of ready/resale construction • External / internal maintenance of the property. • The age of the building. • Quality of construction. • Surrounding area (development). • Whether the builder has received the requisite certificates for handing over possession of the flat. • There is no existing lien or mortgage on the property. • Valuation of the property in relation to other deals in the surrounding areas. • These inspections are carried out to protect consumer interests in terms of Trainings by Vidyaquality, adherence to local construction Bhagwat laws, approved building plans, etc. • Signing the home loan agreement
  • 16. Q&A Trainings by Vidya Bhagwat
  • 17. Activity • Tell all the participants of his session to prepare a checklist of all the documents required for an NRI Trainings by Vidya Bhagwat
  • 18. Assignments • Define any two important steps that are involved in the sanctioning processes of a home loan. • What are the documents required at the time of application for a home loan? • List out the various aspects involved in appraisal of home loans. • What are the fees and charges payable by the borrower on a home loan and when? Trainings by Vidya Bhagwat
  • 19. Trainings by Vidya Bhagwat