Home Loan Sanction Letter, Process, Document Required

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A Home Loan sanction letter is issued to you as a token of acknowledgement stating that your Home Loan application is approved. The document holds the details of your Home Loan, such as:

The approved loan amount
The Home Loan interest rate
The type of Home Loan interest rate – fixed or floating
The repayment tenor
The EMI amount and details
Special provisions, such as offers and schemes
Validity of the sanction letter
Other lender specific terms and conditions

Once you receive your Home Loan sanction letter, agree to the specified terms, and sign the contract, your Home Loan is then disbursed into your account, following end-leg formalities.

Your Home Loan sanction letter acts as proof of your Home Loan eligibility and is submitted to property developers as proof of funding. It is also helpful if a legal dispute arises between you and the lender, as the terms detailed in the sanction letter are mutually agreed and legally binding.

Borrowers looking to download a sanction letter instantly can apply through the Bajaj Housing Finance Online Home Loan form . The form requests minimal details and takes only ten minutes to complete. Eligible applicants can view a tentative offer at the last step and, if interested, they can opt for a Digital Sanction Letter by paying a nominal fee.

What does the Digital Sanction Letter Include?

The Digital Sanction Letter includes tentative terms on your Home Loan, such as:

Home Loan Amount
Repayment Tenor
Home Loan Interest Rate

The letter serves as proof of tentative Home Loan approval and can be used to negotiate a better home buying deal with a seller or a developer. Note that the letter is valid up to 180 days.

The Home Loan sanction letter comes at a later stage of the Home Loan application journey. Here are the steps borrowers should follow, to get their Home Loan sanction letters:

Make your Home Loan application either online or offline and complete the process successfully. Keep your documents handy to satisfy the lender’s documentation requirements.
Comply with all the necessary steps of your Home Loan processing. This stage involves verifying your Home Loan application and the relevant documents.
At the time of the final Home Loan approval, you will receive your Home Loan sanction letter.