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STEP
1 Submit an Application form along with relevant documents :
The
finance company will process your application to check your loan eligibility
based on your income and personal profile. Usually an up front (non
–refundable fee) of about 0.5-1% of the loan amount must be paid before
processing begins.
STEP
2 Verification of the property and supporting documents:
(usually takes 5-7 working days after Step1)
A
company representative may visit the property as well as your residence to
vary information submitted in your application form. Further, a property
valuation maybe carried out by the company to determine the maximum amount
they are willing to lend you. Any references submitted by you in the
Application Form may also be contacted. You may be personally interviewed
and any further clarifications in the documents submitted maybe sought.
STEP
3 Sanction of the loan:
(usually on the 7th working days after Step 1)
A
sanction letter is issued which you will have to sign. This letter will
contain the amount and the terms of the loan. Some companies specify the
period for which the loan sanction is valid. You will have to pay a
Commitment fee (normally 1% of the unutilised loan amount) if you do not
draw on the ENTIRE sanctioned amount before that period.
STEP
4 Submission of the original Property documents and signing
the loan
Agreement
(usually on the 8-10th working days after Step 1)
You
will be required to leave the title deed of the property with the company as
a security for the loan. You will be required to go to the company’s
office to execute the legal loan papers.
STEP
5 Disbursal of the Loan Cheque
(usually on the 10 –15 working days after Step 1)
You
can draw the loan in parts depending on the stage of construction of the
building. Until such time that the entire sanctioned amount is NOT drawn,
you will pay a simple interest on the Actual Amount drawn ( without any
principal repayments). The EMI payments will commence only after the entire
Sanctioned Loan Amount is drawn.
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