Every individual is different. Do you believe in that? Of course. Being unique and functioning differently just lies everywhere. Something like every business is unique; every institution is different and more. Similarly, you need to know that every bank functions differently. In this post, we are going to be talking about how to get a home loan sanctioned from HDFC Bank. Are you ready for that?
How Could I Apply for a Home Loan in HDFC?
The application process for a house loan with HDFC is simple and convenient. A step-by-step guide to the home loan process and payout process is provided below.
Step 1: First Things First, You Will Have to Fill in the Application
You need to submit a fully completed form with the most important documents like ID proof, address proof, income proof, and much more. When you are applying for the loan along with a co-applicant, you will have to submit the same set of documents for the co-applicant, too, along with their signature. If you have already shortlisted a property, you need to give the details in the application form and copies of the property for any technical analysis.
You could also apply for the HDFC Bank home loan through the official portal of the bank or call their customer support for any assistance.
Step 2: Now, You Will Know if Your Loan is Being Approved
After you have submitted the form and the documents, the appraisal and evaluation procedure will begin, and you will be evaluated based on the documents and the details that you have provided on the application form. All your data would be assessed, such as income, liabilities, CIBIL, and more.
When you are a self-employed person, even the sustainability of your business would be assessed. In this stage, there will be a field credit investigation, where a representative of the bank will call you or visit you.
Based on the assessment of this representative and your background verification, your loan eligibility will be determined.
Step 3: There will be a Technical and a Legal Verification
You will have to submit all of your relevant copies of the property-associated data. This will be inclusive of the complete set of documents, such as the sale agreement, NOC, OC, and several other documents, to know the required amount.
Step 4: The Most Crucial Stage for You – The Sanction of the Loan
After the loan eligibility has been determined, the bank will communicate with you about the loan amount and the sanction. The letter of sanction will have the details that are mentioned below:
- The total loan amount sanctioned.
- Home mortgage The interest rate.
- EMI (where applicable) is due.
- The penalty letter’s validity.
- Special Conditions (if any) to be met prior to disbursement
- Additional Terms & Conditions.
- The appropriate interest rate (fixed or adjustable interest rate)
- Loan Term.
Step 5: The Amount is Released
After the legal and technical verification has been done, you will have to submit your original documents. After that, the bank will initiate the process of preparing the disbursal cheque.
Before the lender turns you the disbursement cheque, you must sign the loan agreement. Before you sign the loan agreement, make sure you thoroughly examine the most important elements, such as interest rate, interest type, loan tenure, EMI, and other terms and conditions.
Are There Chances for Your Loan to Get Rejected?
There are a lot of chances that your application will be rejected, and they are:
The grounds for a house loan denial are essentially the same across all banks, except for one thing: each bank has its own internal standards for granting loans to deserving borrowers. The following causes could have resulted in HDFC home loan denial.
- A credit score is low: A credit report provides the whole history of your loans or credit cards, how consistent you were in repaying your credit, any late payments, and so on. If any applicant has the phrases “settled” or “written off” against any credit account, your loan application will be denied because these terms suggest that you have defaulted on your loan and that the lender has settled the account, knowing that the individual would not repay the debt.
- Uncertain employment: It is common to change employment when the proper chance with a decent salary presents itself. If a person switches employment frequently, say every six months or a year, it gives the impression that the candidate is untrustworthy. In such instances, the bank may decline your application.
- Inadequate earnings: Salary is a critical consideration for house financing. If you do not meet HDFC Bank’s wage requirements, your application will be rejected. There is also the possibility that, despite having a larger income, your application was refused. This is because you may have less disposable money and hence fail to meet the loan EMI to salary balance ratio. That is, after paying your monthly EMI, you do not have an adequate wage balance.
Conclusion
A home loan is a long process, but you know that it comes a long way in terms of your life. So, what’s the wait? If you are trying for a home loan, HDFC is one great way to go.
