Broadly there are 4 stages of the entire loan process.

• Application Process:

Duly filled application form along-with required documents are submitted to the bank.

• Documents Verifications:

Once completely filled application form and all required documents are submitted then the file is logged in with the bank. Then operation and the credit team initiates various verifications and assessments. A field verification will be done for all the information provided, especially for:

• Residential Address
• Office address
• Employment verification
• Property Address
• Financial and credit history check
• Legal, Technical & Valuation checks of the property will be done once the property is identified (which is not required in case of Pre-Approval.)

Sometimes there is also a quick telephonic check for the references that have been provided by you in the application form. Once your credentials are validated, it becomes easier to establish a trust between you and the bank.

Personal Discussion

Typically, you will have an interview - telephonic / in person with the credit manager of the bank, during which you can clear all your doubts about figures and procedures. In some cases, you may be asked to furnished additional details / documents.

• Loan Approval and Sanction / Offer Letter

Once your application is processed and depending on the Loan amount applied and repayment capacity, the final loan amount will be communicated to you. You will then be issued a sanction letter stating the terms and conditions under which the sanction is given. These terms and conditions have to be fulfilled before the loan amount to be disbursed.

The Offer Letter will state the loan amount, rate of interest, tenure, mode of repayment and other details and special conditions.

The Acceptance letter will have to be given by you in the given standard format provided by the bank, along with any documents as given in the terms and conditions of the sanction letter. It is only a financial approval of your loan proposal. Loan disbursement would be after you have accepted the offer and the mortgage is legally enforceable and technically clear.

• LOAN DISBURSEMENT:

A.Signing of Loan Agreement

The Loan Agreement needs to be executed according to due procedure; duly signed by all applicant & co-applicants, franked by paying applicable stamp duty etc.

B.Submission of Legal Documents:

All original property related documents pertaining to transfer of the property like Registered Agreements, Share certificate etc Along with Mortgage NOC as per banks format from Builder / Society, payment receipts from your seller (of your own contribution) and its bank reflection etc are submitted with the Loan Agreement. After the final check of these documents and once determined that property is legally & technically clear, disbursement is done and Pay order is made favoring your Seller.

Usually, in case of under construction properties, loans are disbursed as per slab wise progress of construction of the property. This means that the disbursement can be full (in case of a resale / ready possession flat) or part (in case of under construction). Each option would have different disbursement processes.

C.Partial Disbursement

When a loan is part disbursed, the EMI does not start immediately. It is usually started as a Pre-EMI. This is just a simple interest on the amount disbursed. This slab wise payment process continues till the full amount is disbursed once the property is ready for possession. You should, at this stage, ensure that all the Pre-EMI cheques (PEMI) are honored as and when they are presented.

D.Full Disbursement

In case of a resale property / ready possession property, the entire amount is disbursed in favor of the builder or the seller. Keep photocopies of all documents that are passed between your builder and lender as after disbursement is done, you are expected to hand over all the original documents along with the payment receipts to the lender/bank.. This becomes part of the loan documentation in your file.