Home Loan Process in India – Step by Step Procedure to Get Home Loan

Home Home Loan Home Loan Process in India – Step by Step Procedure to Get Home Loan
loadingApply for Home Loan @ 7.90%*
loading

Home Loan @ Lowest Rates

Compare 40+ Banks & get the best housing loans at lowest interest rates. Housing finance schemes available at Paisabazaar are best-in-class. Get the best home loan deals with low processing fee and hassle-free process.

Apply Now to Get Best Home Loan Offers

Error: Please select loan amount
Digit Only
Note: It will help you to get best loan offers
Error: Please enter valid Rate of Interest
Digit Only
Note: Income is required to check your loan amount eligibility.
Error: Please valid monthly income
Error: Please select current city
0 / 10 Digits +91
Note: We may verify this number later using OTP.
Error: Please enter valid Mobile Number
0 / 6 Digits
Error: This is mandatory. We need to check availability of service in your area
City: Delhi
Error: Enter a valid Full Name
Error: Enter a valid Email Address
Error: Date of Birth is required
Error: PAN is required

I hereby appoint Paisabazaar as my authorised representative to receive my credit information from the following bureau partners :

I hereby unconditionally consent to and instruct the above bureaus to provide my credit information to me and Paisabazaar on a month to month basis. I understand that I shall have the option to opt out/unsubscribe from the service.

Name :
Date :28/03/2020

CC:
Paisabazaar.com,
Paisabazaar Marketing and Consulting Private Limited

CIBIL TERMS AND
CONDITIONS

To,
TransUnion CIBIL Limited
[Formerly known as Credit Information Bureau (India) Limited]
One Indiabulls building ,Unit No 1901 – 1905,
19th Floor, Tower 2A-2B, Jupiter Mill compound,
Senapati Bapat Marg, Lower Parel, Mumbai 400 013

Sub: Grant of Consent

Dear Sirs,

In connection with submission of the application for my credit information offered by CIBIL (“Consumer Credit Information”) through Paisabazaar (referred to as the “Company”) and delivery of the Consumer Credit Information to the Company, I hereby acknowledge and agree to the following:

A. The Company is my lawfully appointed agent and he / it has agreed to be my agent for the purposes, including, without limitation, to receive the Consumer Credit Information from TUCL on my behalf and use it in the manner consistent with the Agreement entered into between the Company and TUCL, and the Company has granted its consent for being appointed for the aforesaid purpose.

B. I grant my unconditional consent to the Company to receive the Consumer Credit Information from TUCL on my behalf and use it in the manner consistent with the Agreement entered into between the Company and TUCL, as the case may be, and the Company has granted its consent for being appointed for the aforesaid purpose. I hereby represent and acknowledge that: the Terms of Understanding in relation to the use of the Consumer Credit Information has been agreed between me and the Company.

C. I hereby expressly grant unconditional consent to, and direct, TUCL to deliver and / or transfer my Consumer Credit Information to the Company on my behalf.

D. I shall not hold TUCL responsible or liable for any loss, claim, liability, or damage of any kind resulting from, arising out of, or in any way related to: (a) delivery of my Consumer Credit Information to the Company ; (b) any use, modification or disclosure by the Company of the contents, in whole or in part, of my Consumer Credit Information , whether authorized or not; (c) any breach of confidentiality or privacy in relation to delivery of my Consumer Credit Information to the Company ; (d) for any use made by the Company which is contrary to the Agreement entered into between the Company and TUCL

E. I acknowledge and accept that: (a) TUCL has not made any promises or representations to me in order to induce me to provide my Consumer Credit Information or seek any consent or authorization in this regard; and (b) the implementation of the Agreement between TUCL and the Company is solely the responsibility of the Company.

F. I agree that I may be required to record my consent / provide instructions electronically and in all such cases I understand that by clicking on the "I Accept" button below, I am providing "written instructions" to Paisabazaar authorizing Paisabazaar to obtain my Consumer Credit Information from my personal credit profile from TransUnion CIBIL LIMITED, [formerly known as Credit Information Bureau (India) Limited]]. I further authorize Paisabazaar to obtain such information solely to confirm my identity and display my Consumer Credit Information to me. Further in all such cases “By checking this box and clicking on the ‘Authorize button, I agree to the terms and conditions, acknowledge receipt of TUCL privacy policy and agree to its terms, and confirm my authorization for Paisabazaar to obtain my Consumer Credit Information.

G. I understand that in order to deliver the product to me, I hereby authorize Paisabazaar, to obtain my Consumer Credit Information from TUCL.

H. By submitting this registration form, I understand that I am providing an express adhoc one-time written instructions for Paisabazaar to request and receive information about me from third parties, including but not limited to a copy of my consumer credit report and score from consumer reporting agencies, at any time for so long as I have an active Paisabazaar account. I further authorize Paisabazaar to retain a copy of my information for use in accordance with the terms of use of this service, Paisabazaar’s Terms of Use and Privacy Policy.

I. I UNDERSTAND THAT THE PRODUCT IS PROVIDED ON AN “AS-IS”, “AS AVAILABLE” BASIS AND TUCL EXPRESSLY DISCLAIMS ALL WARRANTIES, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

J. I shall not sue or otherwise make or present any demand or claim, and I irrevocably, unconditionally and entirely release, waive and forever discharge TUCL , its officers, directors, employees, agents, licensees, affiliates, successors and assigns, jointly and individually (hereinafter “Releasee”), from any and all manner of liabilities, claims, demands, losses, claims, suits, costs and expenses (including court costs and reasonable attorney fees) (“Losses”), whatsoever, in law or equity, whether known or unknown, which I ever had, now have, or in the future may have against the Releasee with respect to the submission of my Consumer Credit Information and / or my decision to provide TUCL L with the authority to deliver my Consumer Credit Information to the Company . I agree to defend, indemnify, and hold harmless the Releasee from and against any and all Losses resulting from claims made against TUCL L by third parties arising from and in connection with this letter.

K. I agree that the terms of this confirmation letter shall be governed by the laws of India and shall be subject to the exclusive jurisdiction of the courts located in Mumbai in regard to any dispute arising hereof. TUCL is entitled to assign its rights hereunder to any third person without taking my prior written consent.

Yours faithfully,
Name :

I hereby appoint Paisabazaar as my authorised representative to receive my credit information from the following bureau partners :

I hereby unconditionally consent to and instruct the above bureaus to provide my credit information to me and Paisabazaar on a month to month basis. I understand that I shall have the option to opt out/unsubscribe from the service.

Name :
Date :28/03/2020

CC:
Paisabazaar.com,
Paisabazaar Marketing and Consulting Private Limited

EQUIFAX TERMS AND
CONDITIONS

I Mr./Ms. -------------------- ---------------------residing at ------------------------ ---------------------------------------- do hereby authorise Paisabazaar Team ,to do all acts on my behalf as may be necessary including to execute/sign application(s), make payment of applicable fees* and generally to all other acts as may be necessary to receive, on my behalf and at my request, my Credit Information Report (CIR) from Equifax Credit Information Services Private Limited("Equifax") at the following address/email id:

I hereby confirm that all the powers hereby conferred may be exercised by officer(s) or manager(s) / agent(s) / employees of the Paisabazaar who is duly authorized by the Paisabazaar.

I hereby confirm, agree, undertake and accept that I shall at all times be solely responsible for all the above actions and omissions of the Paisabazaar shall be binding on me as though such actions had been carried out by me directly. I further confirm that my CIR shall be used only for the purpose as mentioned in the attached standard terms and conditions and I shall be solely liable for, and indemnify and hold harmless Equifax for and against, any and all third party claims or damages or proceedings of any kind, arising from or in connection with (a) any misrepresentations, incorrect information or omission of any critical information in my application, or (b) furnishing my CIR based on this authorization letter, and shall not at any time hold Equifax or its affiliates and their respective officers, directors, employees or representatives liable in this respect.

I hereby also confirm that I have only appointed Paisabazaar to be my authorized agent/representative for collection of my CIR.

I undertake to keep Equifax intimated and informed at all times, of any renewals or termination of the authorization to Paisabazaar or any amendments, modifications or changes in the terms governing the obligations or my relationship with Paisabazaar.

I shall at all times co-operate with Equifax and execute and deliver to Equifax such instruments and documents and take such other actions as may be required by Equifax from time to time in connection with this authority letter.

By signing on this authorization letter, I hereby acknowledge and accept the Standard Terms and Conditions mentioned above.

Date : 28/03/2020

I hereby appoint Paisabazaar as my authorised representative to receive my credit information from the following bureau partners :

I hereby unconditionally consent to and instruct the above bureaus to provide my credit information to me and Paisabazaar on a month to month basis. I understand that I shall have the option to opt out/unsubscribe from the service.

Name :
Date :28/03/2020

CC:
Paisabazaar.com,
Paisabazaar Marketing and Consulting Private Limited

EXPERIAN TERMS AND
CONDITIONS

YOU HEREBY APPOINT PAISABAZAAR AS YOUR AUTHORISED REPRESENTATIVE TO RECEIVE YOUR CREDIT INFORMATION FROM EXPERIAN.

YOU HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENT TO SUCH CREDIT INFORMATION BEING PROVIDED BY EXPERIAN TO YOU AND PAISABAZAAR AND YOU HEREBY AGREE, ACKNOWLEDGE AND ACCEPT THE TERMS AND CONDITIONS SET FORTH HEREIN. YOU HEREBY ALSO AGREE AND ACKNOWLEDGE THAT FOR PAISABAZAAR TO SERVICE YOU AS A CUSTOMER, THE CREDIT INFORMATION SHALL BE SHARED BY EXPERIAN WITH YOU AND PAISABAZAAR ON A MONTHLY BASIS. YOU FURTHER ALSO AGREE AND CONSENT TO RECEIVE SUCH CREDIT INFORMATION DIRECTLY FROM EXPERIAN AND ALSO THROUGH YOUR PAISABAZAAR ACCOUNT AS PER YOUR INDEPENDENT REGISTRATION WITH PAISABAZAAR.

Please read the Terms and Conditions of this document carefully before accepting. By clicking on the "I ACCEPT" button below, you are expressly agreeing to access the Experian Credit Information Report and Credit Score (as defined in the Important Information Section below) (together referred as "Credit Information") and share a copy of the Credit Information with Paisabazaar in the "as is" format. Please click on the link below to read and understand the Important Information section below.

** This document is an electronic record in terms of the Information Technology Act, 2000 and Rules made there under, and the amended provisions pertaining to electronic records.

Information Collection, Use, Confidentiality, No-Disclosure and Data Purging

PAISABAZAAR/ We/ Us can only access your Credit Information as your authorized representative and we shall use the Credit Information for limited end use purpose consisting of and in relation to the services proposed to be availed by you from us on the Website. We shall not aggregate, retain, store, copy, reproduce, republish, upload, post, transmit, sell or rent the Credit Information to any other person and the same cannot be copied or reproduced other than as agreed herein.

We shall protect and keep confidential the Credit information both online and offline and use best in class security measures in line with applicable laws. The Credit Information shared by You, or received on your behalf shall be destroyed, purged, erased promptly upon the earlier of: (i) your written request to terminate this relationship with Paisabazaar (ii) the completion of provision of the Services by us to you.

Governing Law and Jurisdiction The relationship between you and the Parties shall be governed by laws of India and all claims or disputes arising there from shall be subject to the exclusive jurisdiction of the courts of [Mumbai].

Definitions: Capitalised terms used herein but not defined above shall have the following meanings:
"Credit Information Report" means the credit information / scores / aggregates / variables or reports which shall be generated by Experian;
"Credit Score" means the score which shall be mentioned on the Credit Information Report which shall be computed by Experian.
"CICRA" shall mean the Credit Information Companies (Regulation) Act, 2005 read with the Credit Information Companies Rules, 2006 and the Credit Information Companies Regulations, 2006, and shall include any other rules and regulations prescribed thereunder.
PLEASE READ THE ABOVE MENTIONED IMPORTANT INFORMATION AND CLICK ON "ACCEPT" FOLLOWED BY THE LINK BELOW TO COMPLETE THE AUTHORISATION PROCESS FOR SHARING OF YOUR CREDIT INFORMATION BY EXPERIAN WITH YOU AND PAISABAZAAR, IN ITS CAPACITY AS YOUR AUTHORISED REPRESENTATIVE.
BY CLICKING "ACCEPT" YOU AGREE AND ACCEPT THE DISCLAIMERS AND TERMS AND CONDITIONS SET OUT HEREIN. THE TERMS AND CONDITIONS MENTIONED HEREIN MAY CHANGE IN ORDER TO COMPLY WITH GOVERNING LAWS OF THE COUNTRY AND THE CONSUMER SHALL BE BOUND TO ANY CHANGES TO THIS AGREEMENT

Name :
Date : 28/03/2020

I hereby appoint Paisabazaar as my authorised representative to receive my credit information from the following bureau partners :

I hereby unconditionally consent to and instruct the above bureaus to provide my credit information to me and Paisabazaar on a month to month basis. I understand that I shall have the option to opt out/unsubscribe from the service.

Name :
Date :28/03/2020

CC:
Paisabazaar.com,
Paisabazaar Marketing and Consulting Private Limited

CRIF HIGH MARK TERMS
AND CONDITIONS

This End User Agreement (the "Agreement") is made between you (the "User" or "You") and Paisabazaar Marketing and Consulting Pvt Ltd ("PaisaBazaar"), a private limited company having its registered office at Plot No 119, Sector-44, Gurgaon-122001, Haryana ("PAISABAZAAR", "Us" or "We", which term shall include its successors and permitted assigns). The User and PAISABAZAAR shall be collectively referred to as the "Parties" and individually as a "Party".

YOU HEREBY APPOINT PAISABAZAAR AS YOUR AUTHORISED REPRESENTATIVE TO RECEIVE YOUR CREDIT INFORMATION FROM CRIF HIGH MARK. BY EXECUTING THIS AGREEMENT / CONSENT FORM, YOU ARE EXPRESSLY AGREEING TO ACCESS THE CRIF HIGH MARK CREDIT INFORMATION REPORT AND CREDIT SCORE, AGGREGATE SCORES, INFERENCES, REFERENCES AND DETAILS (AS DEFINED BELOW)(TOGETHER REFERRED AS "CREDIT INFORMATION"). YOU HEREBY ALSO IRREVOCABLY AND UNCONDITIONALLY CONSENT TO SUCH CREDIT INFORMATION BEING PROVIDED BY CRIF HIGH MARK TO YOU AND PAISABAZAAR BY USING CRIF HIGH MARK TOOLS, ALGORITHMS AND DEVICES AND YOU HEREBY AGREE, ACKNOWLEDGE AND ACCEPT THE TERMS AND CONDITIONS SET FORTH HEREIN. YOU ALSO ACKNOWLEDGE THAT YOU SHALL NOT RAISE ANY CLAIM OR HOLD LIABLE CRIF HIGH MARK CREDIT INFORMATION SERVICES PRIVATE LIMITED IN RELATION TO YOUR CREDIT INFORMATION REPORT AND CREDIT SCORE PROVIDED OR TO BE PROVIDED BY CRIF HIGH MARK TO PAISABAZAAR.

Terms and Conditions: Information Collection, Use, Confidentiality, No-Disclosure and Data Purging PAISABAZAAR shall access your Credit Information as your authorized representative and PAISABAZAAR shall use the Credit Information for limited end use purpose consisting of and in relation to the services proposed to be availed by you from PAISABAZAAR. PAISABAZAAR shall not aggregate, retain, store, copy, reproduce, republish, upload, post, transmit, sell or rent the Credit Information to any other person and the same cannot be copied or reproduced other than as agreed herein.

The Parties agree to protect and keep confidential the Credit Information both online and offline. The Credit Information shared by you, or received on by us on your behalf shall be destroyed, purged, erased promptly upon request from the consumer or the consumer withdrawing the consent to retain such credit information / reports by deleting/deactivating the consumers account with Paisabazaar.

Governing Law and Jurisdiction Definitions: Capitalised terms used herein but not defined above shall have the following meanings:
" Business Day" means a day (other than a public holiday) on which banks are open for general business in Gurgaon and Mumbai.
" Credit Information Report" means the credit information / scores/ aggregates / variables / inferences or reports which shall be generated by CRIF High Mark;
" Credit Score" means the score which shall be mentioned on the Credit Information Report which shall be computed by CRIF High Mark.
" CICRA" shall mean the Credit Information Companies (Regulation) Act, 2005 read with the Credit Information Companies Rules, 2006 and the Credit Information Companies Regulations, 2006, and shall include any other rules and regulations prescribed thereunder.
IN CASE THERE IS ANY DISCREPANCY OR INABILITY IN COMPLETION OF ONLINE AUTHENTICATION, PLEASE SUBMIT YOUR SELF ATTESTED KYC DOCUMENTATION IN SCANNED COPIES FOR SHARING OF YOUR CREDIT INFORMATION BY CRIF HIGH MARK WITH YOU AND PAISABAZAAR (YOUR AUTHORISED REPRESENTATIVE).
ONLINE SUBMISSION - DOES NOT REQUIRE SIGNATURE AND EXECUTION"

Name :
Date :28/03/2020

More

There is some technical issue. Please try again later.

By submitting this form, I agree to Terms of Use

*Offers are from Paisabazaar's partner Banks & NBFCs.

OTP Verification

Verify your mobile

Please enter the OTP we sent via SMS

Didn’t receive your OTP? Send it again
Updated: 27-01-2020 12:57:21 PM

The process to get home loan in India involves several steps, which before digitization of banking were complex and time-consuming for applicants. Today, home loan procedure is not only easy but also quick. Your loan can be disbursed within a week.

If you aren’t aware of the steps involved in the home loan process, read below:

What is the Home Loan Process?

  1. Fill Home Loan Application Form
  2. Submit Home Loan Documents
  3. Pay Home Loan Processing Fee
  4. Discussion with the Lender
  5. Documentation Process & Verification
  6. Home Loan Sanction Letter
  7. Property Verification & Legal Check
  8. Home Loan Disbursal
Step 1: Fill the Home Loan Application Form

The procedure to avail home loan starts with filling out the application form wherein you have to provide your personal details along with other information related to your income, employment, existing liabilities, property, education, etc. You can fill out the home loan application form online as well as offline.

Click Here to Apply for Home Loan

Step 2: Submit the Form and the Supporting Home Loan Documents

After filing out the home loan application form, attach supporting home loan documents and submit it to your lender.

Some of the home loan documents are:

  • Proof of Identity (such as PAN Card, Aadhaar Card, Passport, Driving License, etc.)
  • Proof of Address (such as Aadhaar Card, Passport, Driving License, Utility Bills, etc.)
  • Proof of Age (such as Birth Certificate, 10thCertificate, Aadhaar Card, PAN Card, Passport, etc.)
  • Proof of Educational Qualifications
  • Proof of Income (such as Bank Statements, Income Tax Return, etc.)
  • Proof of Business (such as Balance Sheet, Profit & Loss Statements, Business License, Proof of Business Address, etc.)
  • Documents of the property to be mortgaged (such as approved copy of building plan, NOC from society/builder, estimated cost of house construction, etc.)

Note

  • All documents must be self-attested
  • Besides the documents listed above, your lender may ask for more or less

Click to View the Complete List of Home Loan Documents

Step 3: Pay Home Loan Processing Fees

After you submit the home loan application form along with all supporting documents, the lender might ask you to submit processing fee. Home loan processing fee is non-refundable and varies from one lender to another. It usually ranges between 0.25% and 1.0% of the requested loan amount. There are also many lenders who do not charge the processing fees. Lenders levy processing fee to commence home loan process and maintain the applicant’s loan account. It includes charges to send some confidential paperwork, such as like IT certificates, post-dated cheque, etc., every year. If you have applied for the loan through

For example, an applicant applied for home loan of Rs. 60 lakh. If the processing fee charged by the lender is 0.25%, then the amount that will go towards it will be Rs. 15,000.

Some lenders also keep a cap on the amount that goes as processing fee.

For example, an applicant applied for home loan of Rs. 75 lakh. If the processing fee charged by the lender is 0.50%, then the amount that will go towards it will be Rs. 35,000. But if the processing fee is subject to a maximum of Rs. 20,000 then the applicant will only have to pay Rs. 20,000 instead of Rs. 35,000.

Step 4: Discussion with the Lender

After the submission of the form and supporting documents, the applicant needs to wait until further notified by the lender. During these days, the lender will evaluate your details and decide the amount you are eligible for on the basis of your repayment capacity. During the process, your lender will ask you to pay visit for a face-to-face interaction before the loan is sanctioned. The personal interaction is requested to gather more information and assess your repayment capacity.

Check Also: Home Loan Prepayment Calculator

Step 5: Documentation Process and Verification

After personal interaction, the lender will proceed with the verification of the submitted documents and other details. To validate the information you have given in your home loan application, bank representatives may even visit your home or get in touch with your organization. During the checks, your lender will also request for your credit score and credit report from one or more credit bureaus (such as TransUnion CIBIL, Experian, Equifax and CRIF High Mark).

The process will be quick, provided the documents and information given are all in order and correct.

Step 6: Home Loan Sanction Letter

After successful completion of the above steps, you will get the loan approval or sanction letter, which usually includes the following details:

  • Sanctioned loan amount
  • Applicable rate of interest
  • Type of interest rate – Fixed or Variable
  • Loan tenure
  • Mode of repayment
  • Special scheme (if applicable)
  • Terms and conditions of your home loan
  • Policies of your home loan
  • Get Home Loan Tax Benefits

The letter may also include other details such as the policies related to your home loan.

After receiving the letter, sign and submit the acceptance copy to the lender, provided the content of the letter are acceptable to you. The acceptance copy is the duplicate of the sanction letter that lending institutions keep for keeping records. At this stage, administrative fees (if any) need to be paid to the lender.

Note: Before signing the dotted line, read all details given in the sanction letter carefully.

Step 7: Property Verification & Legal Check

Before disbursing the loan, the bank will verify the property pledged. You will be required to submit original copies of the title deed, no objection certificate, encumbrance certificate and other documents that your lender asks. A legal check will be made on the property to ascertain that the title is clear and that there is no dispute. Technical valuation of your property will also be conducted by the bank. Bank representative will visit the property site for inspection. In case of under-construction property, the bank will scrutinize the location of the property, the stage of the construction, quality and progress of the construction, etc. if the property is ready to be sold or is being re-sold, the bank evaluates its age, ownership, the quality of construction, maintenance, locality and legal clearances.

Step 8: Home loan Disbursal

On successful completion of the above steps, you will get the final agreement from the lender. And finally, the home loan amount will be disbursed as per the mutually agreed terms.

Note: The above steps are indicative as the process might differ from one bank to another.

FAQs

What is full disbursement?

In case of under-construction property, the home loan disbursal is based on the construction stage of the residential property. In case of ready/resale property, the loan disbursement is full. This implies that the lender gives to full or complete payment via cheque.

What is partial disbursement?

In case of under-construction property, the loan payment is usually done in parts, which known as partial or part disbursement. In case of partial loan disbursement, the lender will not begin the EMI right away. Since the EMI is calculated on the total loan amount, the repayment dues on pat disbursement may not be applicable in the beginning of the loan tenure. To resolve this, many lender levy interest on the loan amount that is partly disbursed.

Check Also: Home Loan EMI Calculator

How lenders determine loan borrowing capacity of an applicant?

Banks determine your loan borrowing capacity on the basis of several factors, some of which are:

Age: Your home loan tenure depends on your age. Most banks prefer that the borrower should not be more than 58 years of age when he pays his last EMI. Your home loan tenure depends on your age. Applicants who are 50 years old will be given loan repayment tenure of 6 to 10 years. Applicants who are 35 years old can get the loan repayment tenure of up to 25 years.

Salary: Most banks don’t consider allowances, perks, bonuses and performance-linked pay as a part of your salary. Your loan eligibility is likely to go down if these components comprise a considerable chunk of your salary package.

Existing Liabilities: A borrower’s liabilities (including EMIs of other loans taken) should not exceed 55 to 60 percent of his/her monthly income.

Fixed Obligation to Income Ratio (FOIR): These are the primary criteria for deciding the home-loan eligibility of an individual. Most banks assume that up to 40 percent of a borrower’s monthly income can be directed towards the payment of EMI.

Did you find this article helpful? Rate it.

Menu