Home Loan Disbursement Process

A Home Loan disbursement is the stage at which the lender approves and transfers the loan amount into the borrower's bank account. This is done in accordance with the financial institution’s terms and conditions.

The home loan disbursement process is divided into 3 major parts. These are:

1. Request for Disbursement

Once the loan has been sanctioned, you can raise a request to your lender for the loan’s disbursement. Meanwhile, arrange for documents as required depending on the type of property. These will depend on the type of property you wish to purchase.

• Under-construction Property: In this case, documents like the allotment letter, demand letter, payment receipt, post-dated cheques, etc. are required

• Ready/Resale Property: For a ready-to-move-in or resale property, you will be required to furnish a sales agreement and the complete ownership chain of property documents. 

 To know the exact list of documents required, contact your lender and seek their assistance.

2. Verification and Processing

Once you submit the documents, the lender conducts a technical and legal examination of the property. Simultaneously, your documents are also verified by the financial institution. Alongside this, depending on whether all requisite signatures of all parties and the processing fee of your home loan are submitted, the loan is processed. Once the evaluation is complete, the amount is ready to be disbursed.

3. Final Disbursement

In this stage, the lender will transfer the sanctioned loan amount to you. This could be in the form of either a full or a partial disbursement. The type of disbursement is determined on the basis of the stage of completion of your property’s construction. In case of a total disbursement, you will be required to start making your EMI payments from the next month of having received the loan amount.