The Home loan process usually goes through the following stages:
Home Loan Application & Documentation
You can apply online for a home loan from the ease and comfort of your home with HDFC’s online application feature available at https://portal.hdfc.com/?ref_code=HDFC_W. Alternatively, you can share your contact details on https://www.hdfc.com/call-for-new-home-loan for our loan experts to get in touch with you and take your loan application forward.
The documentation needed to be submitted along with your home loan application form is available on https://www.hdfc.com/checklist/documents-charges. This link provides a detailed checklist of KYC, Income and property related documents required for the processing of your home loan application. The checklist is indicative and additional documents could be asked for during the home loan sanction process.
Approval & Disbursement of Home Loan
Approval Process: The home loan is assessed basis the documents submitted as per the above mentioned checklist and the approved amount is communicated to the customer. There might be a difference between the housing loan amount applied for and the amount approved. On approval of the housing loan, a sanction letter detailing the loan amount, tenure, applicable interest rate, repayment mode and other special conditions required to be fulfilled by the applicants is issued.
Disbursement Process: The disbursement process begins with submitting the original property related documents to HDFC. In case the property is an under construction property, disbursement is done in tranches according to the construction linked payment plan provided by the developer. In the case of construction/home improvement/home extension loans, disbursement is done as per the progress of construction/improvement as per the estimate provided. For second sale / resale properties the complete loan amount is disbursed at the time of execution of a sale deed.
Repayment of Home Loan
Repayment of home loans is done through Equated Monthly Installments (EMIs), which is a combination of interest and principal. In the case of loans for resale homes, EMI begins from the month subsequent to the month in which disbursement of the loan is done. In the case of loans for under-construction properties, EMI usually begins once the construction is complete and the house loan is fully disbursed. Customers can however also choose to begin their EMIs sooner. The EMIs will proportionately increase with every partial disbursement made as per the progress of construction.