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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. This letter is dispatched by the lender only after they approve the borrower’s eligibility to receive a loan. The sanction letter in a Home Loan primarily informs the lender about the loan amount they can avail of basis eligibility. The document holds the details of the Home Loan such as:

  • The approved loan amount
  • The Home Loan interest rate
  • Home Loan interest rate
  • 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

Your Home Loan sanction letter acts as proof of your Home Loan eligibility and is submitted to property developers as proof of funding.

​​​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. ​Apply for a Home Loan: Fill up the full home loan application form and submit it along with the necessary documents.
  2. Verification by the Lender: ​​​The lender will take some time to verify the details shared in the application such as the occupation, income and credit history.
  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 can assure them of receiving the 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.​

*Terms and conditions apply.


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 an In-Principal Sanction Letter by paying a nominal fee.

The In-Principal Sanction Letter includes the terms and offers 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 or In-Principal 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 a few minutes to complete.


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