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How To Apply for Home Loan in Easy Steps?


They say that home is where the heart is, the place you live in will always be the place you feel a deep sense of emotion and affection. After a long tiring day, don’t we all just want to go home? Or, during a heavy rainy day, you’d rather sit by the window sill in the house you just purchased while sipping on a hot cup of tea, eating hot pakoras while looking out, than being at work.

In the early days purchasing a home was usually done by just saving up for years or maybe depending on an unregistered lender, but nowadays, with the ever-increasing property rates saving up for years is probably out of the question.

But, now purchasing a home or a plot of land, or maybe repairing an already existing land, has become possible, thankfully, all these problems are ready to be solved with the help of SBI Realty. Besides, a home loan is known to have many beneficial factors, under various sections of the Income Tax Act of India, 1961, there are multiple tax benefits that come along with getting a loan.

How does the home loan process work in India?

When you take a loan, the amount borrowed is directly paid to the owner or builder of the property by the bank. The applicant is supposed to pay the loan in the form of EMI, including the interest on the principal amount at a given tenure.

Before we begin with the steps, these 3 points are important aspects of a home loan:

1. The loan that is given for a property is taken as security by the bank.
2. Property details like is it commercial or residential.
3. If you fail to pay the loan, the bank is allowed to auction the property

To make it easy for you, let’s talk about how to apply for a home loan easily in 7 simple steps.

7 Steps on how to apply for a home loan

1. Eligibility

Before applying anywhere, the most basic and important step is to check your eligibility. Your eligibility is conditional on your repayment capacity based on your income, monthly expenses, other liabilities, etc. The bank requires you to pay the loan installments without delay. This application insists you in submitting the following basic details:

  • Personal details like name, contact details, residential address, etc.
  • Income details like annual income
  • Education details
  • Business/Employment details
  • Property details like residential/commercial address, etc.
  • The estimated cost of the property
  • Present means of financing the property
  • Identity proof
  • Income proof
  • Age proof
  • Address proof
  • Employment proof
  • Education proof
  • Property details

2. Family Status

Factors that a bank considers before giving a loan are the age and the family status of the applicant, the applicant may not be able to pay the loan on time as the applicant has many dependents. Whereas a younger applicant is more focused on paying off the loans as they don’t have any family pressure or dependents.

3. Property valuation & Processing fees

While home loans are said to be secured loans, the property papers are kept with the bank until the full repayment of the loan. The bank is allowed to terminate your property if there’s an occurrence of default. A non-refundable processing fee is charged by the bank. This is done so that the bank examines the value of the property that needs to be financed and to verify the details of the borrowers, the remaining fee will be charged at disbursement.

4. Documentation and Verification

After this is done, the bank decides within 5 working days if it is okay to approve or reject the loan application. This is applicable only for salaried employees, but when it comes to self-employed borrowers, the bank’s representative may visit your workplace to verify what you do and to understand what you do.

Once it is verified, they will perform a credit enquiry to check the CIBIL score and credit report, if the CIBIL score is up to mark, then you will move further to the next step.

5. Sanction Letter

Once your loan is approved, you will receive a letter which will state your eligible loan amount, interest rate and the type, whether it’s fixed or variable, the tenure of the loan along with its terms and conditions. This sanctioned letter is supposed to be signed and sent back to the bank.

6. Property Verification

Legal checks will be done on the property, ensuring no discourse or disagreement is taking place regarding the property. Technical valuation on the property is conducted as well, the bank will check the progress of the property, followed by the quality of the construction.

If it’s a resale property, they will check the age, quality and maintenance level of the property if it is mortgaged. Property papers, and original copies of the deed will all be mortgaged with the bank and are given back only after the loan is fully paid.

7. Loan Disbursal

This is the final step, where the bank delivers the loan to the borrower after everything is properly verified and approved. After the letter has been sanctioned and sent, it takes around 2-3 days for the disbursement to take place. You may require to deposit proof as a down payment. The disbursal is done in the name of the seller or builder of the property that is being bought.

What are the things that affect your home loan approval?

Few things are important to keep in mind before applying for a home loan:

Age: Age plays an important role when it comes to getting a loan, your age decides whether the applicant is capable of getting the loan

Monthly Income: In order to get a loan, the applicant must have a stable income source. Constantly changing jobs won’t make it any easier for you to get the loan you’ve been waiting for

Duration of the property: This is another factor that affects the loan process, if the property is too old on which the loan needs to be taken, then the loan will be rejected.

Credit Score: A high credit score maybe be more beneficial as it may also end up getting you a higher loan amount and better terms


These were some tips on how to apply for a home loan in a few simple steps, all you have to do is just follow these key features, and you are good to go. Just keep in mind to always keep your documents in place and have a good CIBIL score.

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.