PMAY – Frequently Asked Questions

FAQs

1.What process does Bajaj Housing Finance follow after I apply for Home Loan?

Once we receive the completed application form along with the necessary supporting documents, the following things happen:
First, BHFL examines all the papers you’ve handed in. When these are found to be in order, you get sanctioned a certain amount, depending on factors like: the amount you’d asked for, the value of the collateral property, and your ability to repay loans (creditworthiness). If (for some reason) we decide not to sanction the loan, we’ll let you know right then,
Next, our in-house lawyers and property experts will verify the property documents. They then carry out a thorough technical examination of the property in order to evaluate it.
Upon completion of both these procedures, Bajaj Housing Finance initiates the disbursement of your Home Loan.

2.Is it mandatory to have a co-applicant when applying for a Home Loan? If yes, who can be a co-applicant for my Home Loan?

It is not mandatory to have a co-applicant. If someone is the co-owner of the property in question, it is necessary that he/she also be the co-applicant for the Home Loan. If you are the sole owner of the property, any member of your immediate family can be your co-applicant.

3.What is the Home Loan Sanctioning and Disbursement Process?

Once you have picked the property, you should start figuring out how to finance the House/Flat. You will need to submit these documents:

  • Application Form
  • Processing Fees
  • Documents Requirement
  • Personal Discussion
  • Investigation verification
  • Sanctioning of Loan
  • Acceptance of Loan
  • Legal / Property Assessment
  • Disbursement of Loan

You’ll need to know that a ‘sanction of loan’ and a ‘disbursement of funds’ are two entirely different entities. Here’s how you can get your loan sanctioned and disbursed, explained in a logical order: 

Application form: 

  • If This is the primary document that your lender (Bajaj Housing Finance) considers as the deciding factor in approving (or ‘sanctioning’) your loan amount. Your application form carries other documentation such as the borrower’s (your) personal information, your contact details, details of the property offered as collateral, the total cost of that property, the total loan amount required, details regarding your income, and the loan tenor requested. You’ll also need to include your processing fee cheque here. 

Processing fees: 

  • You will be given a Loan Application Form, and asked to deposit a processing fees along with filled Application form and documents.  

Documents: 

  • You’ll have to submit a set of documents (see ‘Eligibility & Documents’ page for details) depending on your loan application documents you’ve handed in. 

You can take a look at the essential documents here, but note that this may change subject to your customer profile: 

  • Identity proof
  • Address proof
  • Income proof
  • Proof of educational qualifications
  • Age proof
  • Employment details
  • Bank statements

Details about the property in case you have finalized it before hand

4.How will my Equated Monthly Installment (EMI) be calculated?

Your EMI consists of two parts—paying back the principal amount you borrowed, plus the interest rates charged ‘on’ it. Three factors come into the equation—how much you borrowed, the rate of interest, and the loan tenure. There are ways to bring your EMI down: for one, it drops automatically if there is a drop in interest rates, or if you pay back more than you need to (called a ‘partial prepayment’).

5.What are my different options for making my EMI payments?

There are two ways of going about this:

  • An Electronic Clearing Service (ECS) is an easy and convenient option, available exclusively to those that have a bank account. Your EMIs get paid out automatically from your account every month, at a specified date.
  • With Bajaj Housing Finance, you may also choose to hand in a fresh set of Post-Dated Cheques (PDCs) ahead of time, from any bank account. Note that this is only for those customers in non-ECS locations.
  • ECS is the preferred mode, as it’s faster and there are no chances of errors. Plus, there’s no hassle of replacing PDCs when the EMI changes, or when they run out.

6.What is Pre-EMI interest?

Pre-EMI interest is the interest that you need to pay on amount you borrow from Bajaj Housing Finance. Commencing from the date of each disbursement, you can pay each month, until EMI payments start.

7.What is home loan balance transfer?

Home loan balance transfer is when you switch your existing home loan, and the entire principal amount that is still unpaid, to another lender for a lower interest rate. The lender that you had originally taken the loan from will receive this unpaid amount, while you continue to repay the loan amount at a new interest rate to the new lender that takes up your loan.You should first understand home loan balance transfer carefully before opting for the same. It is important that you ascertain the benefits you will receive by way of lower interest rates before you choose a home loan balance transfer scheme. You can apply for home loan transfer online with Bajaj Housing Finance Limited.

8.As per NHB guidelines, what are the charges levied on a home loan balance transfer?

The RBI home loan balance transfer policy contains information on balance transfer charges that you will have to take into account before transferring your home loan. The RBI has directed financial institutions to refrain from charging foreclosure fees when it comes to floating interest rate home loans. Earlier, lenders would levy a prepayment penalty ranging between 2-5% of the outstanding principal at the time of refinancing the home loan. Under the new guidelines, individual borrowers of floating interest home loans are exempt from such penalty charges. The charges remain in place for individual borrowers of fixed interest home loans, and all non-individual borrowers. Even if you are exempt from penalty charges, you are still required to pay a processing fee to your new lender which could vary between 0.5-1% of the loan amount. This amount is sometimes restricted by many lenders to Rs.5,000.