Home Loan disbursement refers to the final stage in your Home Loan application process, here the loan amount is released. The typical Home Loan application process entails the below steps.
Submission of the application form
Approval and verification
Before you apply, use a Home Loan Eligibility Calculator to estimate the amount you will be eligible for. You can also use a Home Loan EMI Calculator to work out the amount to be repaid every month and whether the amount is within your budget.
Key Stages to Home Loan Disbursement
Documents : You will need to submit documents related to your profile and the property in question to complete your application. These include KYC document, income and finance related documents, etc.
Legal Examination of Documents: The property papers, such as a no objection certificate, and sale deed, among others, will be analysed by a legal expert. The report will give a thumbs-up towards taking the process further or added documentation may be needed.
Technical Assessment and Evaluation: The property will be evaluated physically. Its location and condition, as well as the project will be assessed to determine the loan eligibility.
Down Payment: Post legal and technical evaluation, you will be informed about the final loan amount. This will give you clarity on the down payment amount needed
Disbursement: Once you have paid the down payment amount, the loan amount is disbursed, either in entirety or in parts depending on the project status (if it is ready to move in or under construction). Simultaneously, you will need to complete the loan agreement and other formalities.
When you commence repaying your Home Loan online, you will receive a document called a Home Loan Statement. If you have a loan with Bajaj Housing Finance, you can access this statement anytime, anywhere from our Customer Portal.
The Home Loan account statement demonstrates the repayment record of the loan for the set tenor. It showcases the loan amount, the beginning and end dates of the loan tenor, the Home Loan interest rate applicable, the type of interest rate (whether fixed or floating), the total amount repaid to date, the previous EMI amount, how much of the loan remains to be repaid, and more.
On the off chance if you have part-prepaid your loan, or missed an instalment for any reason, it is recorded in your account statement as well. The requisite adjustment in the principal amount is also recorded within the statement, so that you have a clear and accurate picture of how much you have repaid, and how much you need to repay in the future.
The statement also lists down every single repayment you make towards you loan, and records the date on which you made the payment, as well as the date on which it was credited to your loan account.
As such, your Home Loan account statement is the most important document pertaining to your loan. Without your account statement, you can end up losing track of your repayment.
The Home Loan statement can be accessed online by signing into the Bajaj Housing Finance Customer Portal.
What is Home Loan Prepayment?
Home Loan prepayment refers to the process where a borrower chooses to repay a sum over and above the set EMIs as per his/her repayment schedule. Borrowers choose to prepay a part of their loan amount if they have surplus funds. The sum paid goes towards repayment of the principal amount.
A Home Loan prepayment can be helpful in one of two ways. You can either prepay to reduce your EMIs and repay the loan over the same tenor. Or, you can prepay to reduce your tenor, so you pay the same EMIs but become debt-free sooner.
What are the Prepayment Charges on Home Loan?
Individuals with floating interest rate Home Loans can choose to prepay a part or the entirety of their loan amount at any time without any additional charges or penalties. Non-individuals and borrowers with fixed interest rate Home Loans pay a nominal sum on prepayment.
Unsure about whether you should prepay or not? Use our Home Loan Prepayment Calculator to make an informed decision.
For a complete list of fees and charges, click here.
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