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Making homeownership happen: A detailed guide to Indian Home Loans


“Is this the right home for me?” “Is this a safe neighbourhood?” “Will the lender try playing tricks?”

Do these questions often occur to you? Do you want answers to them?

Acquiring a home in India is a very important step for every individual at some stage of their lives, so it is essential to understand the meticulous steps that surround financial evaluation, thorough research, documentation and collaboration with financial institutions.

First and foremost, Let’s get the facts right - Home Loans are NOT only for the “Rich & Affluent”. Banks and other financial institutions are super fired up to transform your homeownership dreams into reality.

Preliminary to the step-by-step home loan process, let’s get a brief explanation of what a home loan is and how it works in India.

What is a Home Loan?

In order to be financially equipped to purchase a house, you need sufficient money, and that is when you may opt for a Home Loan. The loans provided by banks such as SBI can be instrumental in fulfilling your dream of homeownership by providing you with the necessary funds to purchase a property.

The loan amount, terms, and interest rates can vary depending on your eligibility and the specific SBI Home Loan product you choose. The loan provided by SBI is disbursed directly to the builder or owner of the property, making the home-buying process more convenient and accessible for aspiring homeowners.

Which type of Home Loan is best in India?

In this type of loan, your property is taken in as collateral until you pay the full loan amount back to the lender. You can pay it on an EMI basis over a specific tenure during which the loan has to be paid. The EMI amount includes both the interest and part of the principal amount.

Though this might seem a bit complicated to you, but don’t worry, SBI is here to make the process fun and straightforward for you.

Furthermore, we will guide you towards an extensive process of obtaining a Home Loan in India. From assessing one's financial capacity to selecting the ideal lender and property, each stage plays a crucial role in making homeownership aspirations come to fruition.

How to get a home loan easily?

A step-by-step guide to the SBI Home Loan application process:

1. Submit your application – This is when your journey officially begins!

You first need to submit a completely filled application alongside your important documents. If you decide to apply with a co-applicant, they need to sign the form and submit the same set of documents as well. The documents submitted at this stage include:

  • Identity Proof
  • Address Proof
  • Income Proof
  • Current means of financing the property
  • Business/Employment Proof
  • Property details like residential/commercial address, etc.
  • Property Proof, like the approximate cost of the property

While you’re at it, provide detailed documents of the short-listed property in the form and submit a photocopy of the documents for legal and technical analysis.

But how can we make this tedious process easier and more convenient? You can easily apply online by visiting the site SBI regular Home Loans.

Congratulations! You’ve completed the first step towards embarking on your homeownership journey.

2. Pay the processing fee

You have to pay the required processing fee after submission of the application. The amount you have to pay, of course, varies from lender to lender; however, with SBI, the home loan processing fee is charged the lowest.

The processing fee is usually collected so the loan account can be properly maintained. Basically, it covers the cost of the administrative and operational costs and is non-refundable.

3. Discuss with the lender - The show progresses from here on!

Once you’ve picked a lender suitable for you and all your documents have been verified, you will be called to the bank for further discussions with your lender. Discussing about the loan term, interest rates and some other details.

While some banks claim it necessary to discuss these details in person, some would rather do it online. If documents are submitted the right way, it will take about 1 - 2 days for the banks to follow up. You can know more about SBI Home Loans.

4. Wait for verification of documents

There are several customers that submit their applications on a daily basis. To make the process easier, submit the documents in order. The documents you’ve submitted will then be verified by the lender. The documents are checked to ensure the facts are all in order. The documents verified are as follows:

  • Residential details
  • Employee details
  • Employer credential
  • Contact number of resident and workplace

5. Get approval – awaiting an unexpected turn!

This step will keep you on the edge of your seat, anticipating what comes next. This stage will determine whether your loan will be approved or disapproved. A detailed check is done on the applications submitted. In accordance with the application handed over, the lender confirms the amount that can be granted.

  • Age and qualification
  • Employment and Business details
  • Income details
  • Capacity to repay the loan with the set interest rate

6. Receive the sanction letter

After the documents are submitted and approved, the home loan process includes receiving the “Sanction Letter”. This letter includes a bunch of information the lender wants to communicate with the applicant, including the loan amount. The letter covers the following details:

  • The amount sanctioned for the loan
  • The Home Loan interest rate
  • Fixed or variable type of interest rate
  • The loan approved tenure
  • EMI to be repaid
  • Any other terms and conditions

7. Submit your property documents

After the documents have been approved and you’ve received the sanction letter, now added is the approval of the property that has been selected by the applicant. These documents will remain with the lender until the loan is repaid. The following details have to be mentioned as a part of the document.

  • Seller’s name and address
  • Property name and address
  • Chain of documents. This is required where the seller is not the first owner of the property
  • NOC from legal owner
  • NOC required from the development board and the housing society
  • NOC from the lessor if land on lease

8. Ensure technical checks and site estimations

The property is used as collateral and hence, causes the lender to make thorough technical checks to ensure the property is free from any disputes. It includes

  • The construction stages
  • The quality of the construction
  • The period of the finished construction
  • The certificates required by the builder
  • The value of the property

If the property is finished and is in the reselling stage, then the documents required are:

  • The age of the property
  • Quality of construction
  • Neighbouring area
  • Approval plans of the building
  • Property maintenance must be both internal and external

9. Finalize the Loan deal

Finally, when all the documents are submitted, the technical checks are in place, and the lender is satisfied, ultimately, you will be led to the final registration. The paperwork is finalized and stamped.

10. Sign agreements

Once all the paperwork is in order, both parties need to sign the documents. Typically, the lender signs first. The applicant then signs and provides post-dated cheques for the agreed loan duration. The property papers are handed to the lender as part of the agreement for security.

11. Wait for the loan's disbursal – finally, the show's climax!

After all the formalities are complete, finally your lender makes a move to disburse your loan. As evidence, the lender can ask you to pay a down payment.

Here is the Grand Finale you’ve all been waiting for!

The disbursal is done, and the house is within your reach. Celebrate with a housewarming ceremony or have the best cocktail party.


So, there you have it – a fun home loan process step-by-step guide. You can check out more about Home Loans on our website.

Remember to embrace the journey, and before you know it, you’ll be living your dream in your very own home. Get ready to roll out the red carpet for yourselves and enjoy the show!

SBICAP Securities Limited through its division SBI Realty solutions deals in Pre Launch, Under construction, Ready Possession. SBICAP Securities Limited through its division SBI Realty solutions provides a unified platform for exchange of information & facts for buyers, builders & sellers. SBICAP Securities Limited through its division SBI Realty solutions is merely an intermediary for exchange of information to facilitate the transactions between Builder, Developers / Seller and Customer / Buyer and is not and cannot be a party to or control in any manner any transactions/disputes between the Seller and the Buyer. Projects featured on are SBI approved projects only. SBICAP Securities Limited through its division SBI Realty Solutions shall neither be responsible nor liable to mediate or resolve any disputes or disagreements arising between the Buyer & Seller and both Seller and Buyer shall settle all such disputes without involving SBICAP Securities Limited through its division SBI Realty solutions in any manner whatsoever. The Website provides in depth analysis of the Property Market with more than 2400 Under Construction Projects developed, which are currently under development by more than 800 Developers. The website features latest prices, digital pictures of projects in various construction stages. The focus of the website is on Home Buyers looking to buy or upgrade to a New Home or Invest in under construction project or pre-launches by reputed builders.