Home Loan Process in India: Step by Step

What you need to know

A home loan usually takes one to three weeks from application to disbursal, most of it spent on credit appraisal and on legal and technical checks of the property. Knowing each step helps you keep documents ready and avoid delays at the registration or possession stage.

Steps

1. Check eligibility & compareCompare rates, fees and APR; check your credit report for errors.
2. Apply & pay login feeSubmit KYC, income and property documents.
3. Credit appraisalIncome, FOIR, credit history and employer/business verification.
4. Sanction letter & KFSShows amount, rate, spread, tenure, EMI, fees and validity. Compare the APR.
5. Legal & technical verificationLender’s lawyer checks title chain and encumbrances; engineer values the property and checks approvals.
6. Own contributionPay your share (at least 10% – 25% under LTV rules) to the seller/builder.
7. Agreement & mortgageSign the loan agreement; deposit original title deeds or register a mortgage as required; lender registers the charge with CERSAI.
8. DisbursalFull amount for resale/ready homes; stage-wise against builder demand letters for under-construction homes.
9. RepaymentPre-EMI (interest on disbursed amount) until full disbursal, then EMIs by auto-debit.
10. ClosureGet the no-dues certificate and all original documents back; ensure the lien is removed.

After you repay

• RBI requires lenders to return all original property documents within 30 days of full repayment.
• For delays caused by the lender, it must pay you ₹5,000 for each day of delay.
• If documents are lost, the lender must help obtain certified copies and bear the cost.
• Check that the CERSAI charge is satisfied and the loan shows as closed in your credit report.

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