What is the disbursement process of home loans?

The home loan disbursement process usually has three stages: the submission of the application form and documents followed by the sanction and the disbursement. This is usually communicated through the home loan disbursement letter, which contains your disbursement schedule. Once you approve the home loan sanction letter, the disbursement process starts.

The key home loan disbursement stages include the following.

  • Documents
    Submit a signed duplicate copy of the offer letter and you will be informed about the property documents needed for the disbursal of your home loan
  • Legal examination of documents
    The property papers like own contribution receipt, no objection certificate, and sale deed will be examined by a legal expert/lawyer. Their report will either give an approval on taking the process further or require more documentation.
  • Down payment amount and date
    You will be informed about the date of the down payment and the first instalment required.
  • Transaction documents
    Documents to be executed include the credit facility application form and others, which will need to be filled out or signed.
  • Disbursement of the loan amount
    The amount will then be disbursed in a single instalment or multiple instalments after the technical and legal property verification and subject to the sanction letter’s terms and conditions.

You can expect swift disbursal of your home loan from Bajaj Finserv. Here, you can also get pre-approved home loan offers that save you time and require minimal documentation. To make your journey as a borrower hassle-free, use a home loan eligibility calculator in order to understand the amount that you will be eligible for and a home loan EMI calculator to work out the amount to be repaid every month in advance.