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Home Loan Process

Home Loan Procedure

Last Updated 21st Jan 2022

  • A home loan is a credit facility wherein you can avail finance against the mortgage of your property.
  • Compare best home loan offers online before you apply for a home loan.
  • Home loan eligibility can be higher if you apply for a home loan with a co-applicant.
  • Use home loan eligibility calculator to check home loan eligibility.
  • Home loan usually gets disbursed within a time period of 15 to 30 days.
  • Check best offers on home loan starting @ 6.50%.
Apply for Home Loan @ 6.50%* Get upto ₹ 1,000* Cashback

Step by Step Guide to Home Loan Procedure

A home loan is a credit facility which is provided by banks and NBFCs wherein you can avail finance against the mortgage of your property on which you plan to purchase, construct or renovate your house. To avail a home loan, you need to fulfil the essential eligibility criteria, that varies among different lending institutions and follow the set of procedures as explained below.

Guide to Home Loan Application Process

Here is a step-by-step guide to avail a home loan from the different lending institutions:

  • Fill the Home Loan Application Form.
  • Check Home Loan Offers
  • Discussion about loan eligibility
  • Appointment with the bank
  • Evaluation of Documents
  • Sanction/Approval Process
  • Processing of offer letter/technical papers
  • Final deal
  • Signing the Agreement
  • Loan Disbursement

Filing the Application Form

To apply for a home loan, the first step is to fill the home loan application form. You can fill the application form on a bank website or online marketplace like MyLoanCare. To apply for a home loan from Myloancare.in, follow the below-mentioned steps:

  • Visit MyLoanCare.in or download the Myloancare application from the play store. Now, on the home page, click on the home loan tab. You will be redirected to a new page.
  • You can apply for a home loan online by filling the form with personal and loan requirement details, which includes the following:
    • Occupation- Salaried/Self Employed
    • Nature of Loan- New Loan/Balance Transfer
    • Full Name
    • Mobile Number
    • Net Monthly Income
    • Place of Residence
    • Loan Amount
  • Once you have entered all the details, click on Get Quote and you will be provided with an OTP to the mobile number you have entered.
  • Now, enter the OTP sent on your number and click on verify.
  • Next, enter details in the home loan application form and click on get offers. You will be required to provide the following information:
    • Personal details such as Gender, Email ID, Date of Birth
    • Occupation
    • Location of Property

Check Home Loan Offers

Once you have submitted the application form, you can now compare the home loan rates and other charges such as processing fees of different banks and non-banking institutions on Myloancare.in. You can also check home loan eligibility and EMI online through tools such as Home Loan Eligibility Calculator and Home Loan EMI Calculator to shortlist the banks that offer the maximum loan amount according to your home loan eligibility.

Discussion about Home Loan Eligibility

A MyLoanCare executive from the home loan department will now contact you to verify your home loan eligibility and discuss the loan requirements. Based on the discussion, he/she will suggest the right lenders and loan offers to you and also explain the complete procedure for a home loan and documents required. Some of the factors on which your home loan eligibility depends are mentioned below:

  • Age
  • Monthly Income
  • Current obligations
  • LTV Ratio
  • Property Type

Appointment with the bank

If you are eligible and interested, our representative will fix an appointment with the bank for document pick-up and further loan process. A bank's representative will contact you and will initiate a verification process for the home loan. He may also ask you to visit the bank and ask you to submit home loan documents for evaluation of home loan documents.

Evaluation of Documents

Once you have submitted your home loan documents, the bank will evaluate your home loan documents and verify your home loan eligibility based on the papers that you have submitted. A bank usually takes 1-2 days for evaluation of documents. However, these may vary from lender to lender. These are the documents that a bank will need to evaluate:

  • Residence check of the applicant
  • Contact details of the applicant (Workplace and Residence)
  • Income Evaluation
  • Verification of the Employer
  • Evaluation of the property papers

Sanction/Approval Process

After verification of your income and property documents and based on your credit history and eligibility, the bank will decide to sanction or reject your loan. If sanctioned, you will receive a sanction letter from the bank mentioning the key loan terms, including loan amount, interest rate, processing fees, tenure, prepayment charges. You have to sign this document and submit it to the lender for further disbursement of the loan.

To check the applicant home loan eligibility and to determine the terms of home loan, the bank will evaluate these factors:

  • Qualification, Age and Experience
  • Nature of work
  • Current and total work details
  • Credit Score
  • Ability to repay the loan

Processing of offer letter/technical papers

Once you have submitted the offer term, the bank will further perform the legal and technical check for the home loan. They will ask you to submit the original property papers and these papers remain with the bank as the security/collateral. Now, as you submit these property papers, the bank will validate them for authentication, which is termed as a legal check. The bank sends the documents to its lawyers for the legal review. After the legal check, the bank sends the property expert to the site for technical validation.

Bank performs the technical check to get information about the following details:

  • Quality of the construction.
  • Work progression.
  • The time required to build the house.
  • The layout of the house
  • Verification of certificates for building on the land.
  • Property valuation and environmental areas.

Final deal

After completion of the legal and technical check, the bank now prepares the final agreement for the loan. For preparing the final agreement, the lawyer of the bank finalizes the loan documents, drafts them, and have them stamped as well as signed.

Signing the Agreement

The applicant now needs to sign the final agreement and submit the principal payment of the home loan as well. At this stage, you also have to submit the original home loan documents and records the same through mediums such as video in the presence of guarantor of the loan if required.

Loan Disbursal

After completion of all the formalities, the loan is finally disbursed to your account.


How do I get a loan from the bank to buy a house?

If you want to get a home loan from the bank, you need to follow the below-mentioned procedure:

  • Fill the Application Form.
  • Check Home Loan Offers
  • Discussion about loan eligibility
  • Appointment with the bank
  • Evaluation of Documents
  • Sanction/Approval Process
  • Processing of offer letter/technical papers
  • Final deal
  • Signing the Agreement
  • Loan Disbursal

How long does it take for a home loan to be approved?

Once you have applied for a home loan and submitted the home loan documents, banks usually take 1-2 days for verification of home loan documents. After which, the bank does legal and technical checks, and the home loan usually gets disbursed in 15 to 30 days. However, the disbursement may delay if the documents you have submitted to the bank are not complete.

What is the EMI for a 20 lakhs home loan?

Currently, the lowest home loan EMI is ₹ 360. For a home loan amount of ₹ 20 Lakh, the EMI may vary according to the loan tenure. The home loan EMI for 10 years, 15 years and 30 years will be ₹ 10,833, ₹ 10,833 and ₹ 10,833 respectively for a ₹ 20 Lakh home loan.

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