Home Loan Sanction Letter-Banner_WC



A Home Loan sanction letter is issued to you as a token of acknowledgement stating that your Home Loan application is approved. This letter is dispatched by the lender only after they approve the borrower’s eligibility to receive a loan. The sanction letter in Home Loan primarily informs the lender about the loan amount they can get as opposed to the one they want. 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 housing 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.

​​​When you decide to opt for a home loan, you should also be aware that lenders follow a particular procedure for loan sanctions. This procedure may vary from one lender to another. But generally, they comprise the following steps:

  1. ​Check Your Home Loan Eligibility and Apply: ​​​First, check your home loan eligibility. Then, fill up the home loan application in detail and submit it along with the necessary documents.
  2. Verification by the Lender: ​​​The lender will take some time to verify the occupation, income and credit history details.
  3. Home Loan Approval: ​​​After the lender completes verifying the details and is satisfied with the result, the home loan sanction letter is issued.
  4. ​Disbursement of the Loan: ​​​After property valuation and all verifications, the lender will prepare a loan agreement which you have to sign. Then, the loan amount will be disbursed.

Following are the documents required for a Home Loan sanction letter:

  • Mandatory documents such as PAN card or Form 60
  • KYC Documents
  • Proof of Residence
  • Income Proof
  • Financial Records as requested
  • Property Related Documents

Note: Additional documents may be requested at the time of loan processing.

*Terms and conditions apply

Importance of a Home Loan Sanction Letter​

Importance of a Home Loan Sanction Letter​

​​​Let’s check the reasons why a home loan sanction letter is important: ​​

  • ​​​The sanction letter is proof of your home loan eligibility. ​​
  • Property managers and housing societies prefer to see a home loan sanction letter as it assures them of receiving payment on time. ​​
  • ​​​Apart from mentioning the loan amount, the document also mentions your EMIs. This makes it easier for you to plan and manage your finances. ​​

​​A home loan sanction letter acts as proof in case of any legal dispute between the borrower and lender over terms and conditions.​


Frequently Asked Questions

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.

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

  • Home Loan Amount
  • Repayment Tenor
  • Home Loan Interest Rate

The actual time taken for a Home Loan sanction varies from one financial institution to another. It can take up to 3-4 weeks depending on the time taken to assess and verify a borrower’s eligibility, submitted documents, property valuation and other processes. Bajaj Housing Finance aims to approve your Home Loan application in only 24 hours* and disburse the loan amount in 48 Hours* from the time of documentation and other verification.

Yes, a Home Loan sanction letter does not provide the final approval for a loan. It is the loan agreement that states the final terms and conditions determined by the lender. So, if a lender finds discrepancies with an applicant’s submitted documents or their eligibility, they can cancel a sanctioned loan. Other factors that may lead to the cancellation of a sanctioned Home Loan include problems with approval for a project’s construction and changes in government policies.

Yes, today, many lenders offer an entirely digital process for Home Loan applications. This means you can apply for a Home Loan and get approval and disbursal from the comfort of your home. An online Home Loan sanction letter is a digital form stating a borrower’s eligibility to receive the loan. You can get a Home Loan sanction letter online from Bajaj Housing Finance by filling out the Online Home Loan Form. It just takes ten minutes to complete.


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