7 EASY
LOAN STEPS

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Filling the form

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Documentation

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Processing and Verification

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Sanction Letter

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Secure Payment Fee

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Legal and Technical Check

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Loan Disbursal

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Frequently Asked Question
(FAQ's)

Home Loan is a secured loan given by a bank against the security/hypothecation of an underlying property. In the event of failure to repay by the borrower, the bank can, subject to laws of India, attach/sell the underlying property and recover the principal amount and any outstanding interest thereon. A home loan can be availed for buying an under-construction property, resale property or even to construct a house on a vacant piece of land.
Loan eligibility is dependent on primarily the following factors:

  • Cumulative net monthly salary of the applicant and co-applicant.
  • Quantum of loans and credit card outstanding that you already have. Typically a bank will not give a loan if the total EMI obligation (including the current home loan that your are trying to apply for) exceeds 70-80% of your total net take home salary.
  • Loan to asset Value (LTV) ratio of 75-95% which means that the customer has to fund the remaining 25-5% through his savings or any other source.

The final decision to grant a loan lies with the credit department of a bank. Some of the reasons why a loan can be rejected are:


Possible Issue:
Already running several loans and hence a bank may not be comfortable with your existing leverage levels vis-a-vis your salary level.
Possible Way Out:
a)If you have a spouse who is also working, you can add her as a co-applicant to boost the combined salary levels or
b) Try to pay off some of your debt so that your leverage levels can come down or
c) Do a balance transfer/debt consolidation/re-financing of your existing loans such that the rate of interest on loans can also come down and additional loan can also be provided
Possible Issue:
Issues in your credit history as reflected in your CIBIL, Equifax reports.
Possible Way Out:
a) If the issue is a minor one like some delay in payment of credit card due then we can try your application in some other bank who can possibly take a lenient view on the deviation.
b) If you think that the credit report is erroneous and you have sufficient documentary proof we will represent the case to the bank and try to convince the credit team.
c) If the issue is a major one like write off, settlement of any past dues etc then it might be difficult to obtain a loan. Certain mitigation factor like if you/your spouse/your parents have an own house in India can give comfort to certain banks to give you a loan.
Possible Issue:
Most banks have certain internal credit parameters to evaluate a loan which is kept confidential and not shared with us. Several demographic, financial and credit aspects go into these internal evaluation. You might not have met the minimum cut off for obtaining a loan.
Possible Way Out:
Home Loan Enquiry can re-apply for your loan in one of the other 10 plus lenders that we are affiliated to
Pre closure means that a customer wants to close the entire principal outstanding amount at one go. Whereas part payment means that a customer wants to repay only a certain portion of the outstanding amount. Please ask our advisor for more details on this when you loan is being processed.
Home Loan preclosures are allowed without any extra charges as long as the mode of repayment you have chosen is Floating rate of Interest and not a fixed rate of interest. Regarding part payment, some banks may have a restriction on the number of times you can do a part payment per year and also the amount that can be part paid in a year. Please ask for clarifications to our or the banks’ loan advisor on all these factors before signing the loan document.
Unlike personal loans, every bank has a single rate of interest for all customers and it does not vary from customer to customer. The Fixed rate of interest will be slightly higher than the Variable rate of Interest. So it depends on which option you choose.
Home Loan Enquiry will work with the banks to try and get you the loan within 7 to 15 working days of submitting completed documents.
The applicant and the co-applicant needs to provide the following documents:
  • Identity proof (PAN card)
  • Residence proof (Aadhar card, Passport, Voter ID, Driving licence)
  • Last 3 months salary slip
  • Last 6 months bank statement
  • 2 Passport sized photograph
  • 2 Years Form 16
  • Property documents
  • Receipts for initial down payment
The applicant needs to provide the following documents:
  • Identity proof (PAN card)
  • Residence proof (Aadhar card, Passport, Voter ID, Driving licence)
  • Business Proof
  • 3 Year ITR
  • 1 Year Current account bank statement
  • 2 Passport sized photograph
  • Property documents
  • Receipts for initial down payment
The applicant needs to provide the following documents:
  • Identity proof (PAN card)
  • Residence proof (Aadhar card, Passport, Voter ID, Driving licence)
  • Company - Business Proof
  • 2 Year ITR of Company
  • 1 Year Current account bank statement
  • Individual KYC
  • Individual ITR
  • 2 Passport sized photograph
  • Property documents
  • Receipts for initial down payment
All home loans repayment happen in the form of an EMI (Equated Monthly Installment) through the customer’s bank account. The customer needs to give few PDC’s (Post dated cheques) and sign an ECS mandate in favour of the bank disbursing the loan.
The bank will levy certain ECS bounce charges/penalties. In addition it will get reported in your credit report. Depending on the severity of the default it can have serious impact on your future credit possibilities like a home loan, car loan etc. In addition, the banks can also take legal action against the borrower.