image image

Home Loan Starting 6.70%*

image

About Home Loan Sanction Letter

During the home loan application and approval process, there are several important things to take into account as a borrower. These include the lender-specific eligibility and documentation requirements, application procedure, fees payable and much more. As you go through the processes, the lender will provide you with a crucial document known as the home loan sanction letter. To a borrower, this documentation is important because it contains all the information related to the home loan deal on offer.

To get a better understanding of what is a sanction letter for home loan and related terms and concepts, refer to the information below.

What is a Home Loan Sanction Letter?

The process for a home loan approval and disbursal includes application, assessment, submission of documents and verification. Once you avail for the home loan and submit basic documents, your lender will issue a home loan sanction letter after approval of your online application. Check this document thoroughly for specified loan amount as well as other terms and conditions. Remember, this is not the final loan agreement and you can still negotiate terms with the lender. Simply put, the sanction letter of home loan is an approval documentation offered by the lender in favour of the borrower.

A home loan sanction letter includes information such as loan tenure, approved loan amount, home loan interest rate as well as a lender’s terms and conditions, and is valid for six months. You can always calculate your eligibility online before applying for a home loan using  home loan eligibility calculator in order to get an idea of the amount which you can get from the lender. Some procedures and protocols to be followed for a loan process are given below.

  1. A home loan application needs to be first submitted by the borrower either offline or online.
  2. Once the application has been submitted a lender will validate the given information such as documents, legal checks on the property, and more.
  3. Upon completion of the authentication process, if the application has been approved, then the customer will receive a copy of the home sanction letter listing the tenor and loan amount details.

A housing loan sanction letter is not the final loan agreement and a borrower needs to fulfil other formalities in order to receive the disbursal.

What is a Digital Home Loan Sanction Letter?

A digital sanction letter refers to an initial approval document offered under e-home loan applications. It is issued prior to the final home loan contract and entails important information like rate of interest on home loan  rate of interest on home loan, loan amount and tenor.

With the Bajaj Housing Finance e-home loan, you can instantly download your digital sanction letter, which is valid for 180 days. A digital home loan sanction letter is system-generated and does not require signature for authentication.

  • KYC documents such as voter ID, passport, Aadhaar card, driver’s license.
  • Employee ID card, for salaried applicants.
  • Latest salary slips of the last 2 months, for salaried applicants Bank account statements of the last 6 months, showing proof of income.
  • Proof of minimum business vintage of five years for self-employed applicants
  • Passport-size photographs

Which Documents are Required for a Loan Sanction Letter?

Necessary documents for availing a sanction letter are listed below. However, you may be asked to provide additional details upon request.

  • KYC documents such as voter ID, passport, Aadhaar card, driver’s license.
  • Employee ID card, for salaried applicants.
  • Latest salary slips of the last 2 months, for salaried applicants Bank account statements of the last 6 months, showing proof of income.
  • Proof of minimum business vintage of five years for self-employed applicants
  • Passport-size photographs

What is the Format for the Home Loan Sanction Letter?

A home loan sanction letter mainly comprises the following:

  • Loan amount to be sanctioned.
  • Home loan tenor.
  • Validity of the loan sanction letter.
  • Applicable interest rates (floating or fixed)
  • Lender’s terms and conditions

Why is a Home Loan Sanction Letter Required?

A loan sanction letter is an important document, giving you all the important information you need to plan your repayment, compare lenders to make your final decision and figure out any loan terms that you need to negotiate or discuss with the lender. One of the main reasons why a home loan sanction letter is crucial is because this document can also help you prove your eligibility for the home loan, which may be required in your home purchase process.

How to Apply for a Bajaj Housing Finance Sanction Letter?

You can get the sanction letter in just a few minutes of approval when you apply for a Bajaj Housing Finance Limited Home Loan. As the loan requires only basic documentation and has minimal home loan eligibility criteria for you to meet, it is easy to complete the paperwork and provide other important details at a quicker pace.

For a hassle-free experience and quick loan approval, apply online by sharing your basic details.