Now that you are well aware of the types of loans and EMI options and have decided on the one that’s best suited for you, let us take a look at the procedure to apply for a loan. It is fairly simple and quick:

Step 1: Submission of loan application form with relevant documents.

Step 2: Verification of the respective property and its supporting documents. This step takes 5 to 7 working days.

Step 3: Around the 7th day, the loan is sanctioned, if all criteria are met and documents are in place.

Step 4: Original property documents to be submitted, followed by which the loan agreement is signed.

Step 5: The loan cheque is disbursed in 10 to 15 working days.

The important documents to be submitted for approving the home loan are:

•Identity proof

•Residential proof

•Properly filled loan application form

•Photograph

•Sale agreement

•Last 6 months bank statement

•For business applicants documents describing the type of business, and IT returns.

•For salaried applicants last 3 month’s salary slips and From 16A.

Costs incurred while applying:

For a Home Loan, the basic registration charges, transfer charges and stamp duty costs are added to the cost of the home.

Some other charges include:

•Processing charge or booking fee – paid to the lender when you apply for the loan. It could be fixed or a percentage of the loan amount.

•Pre-payment penalty – if the loan is repaid before the agreed duration, some lenders may charge a penalty, up to 2% of the amount pre-paid.

•Miscellaneous costs – there could be a documentation or legal fee, also known as “application fee”.