Get a home loan in Bikaner by following some steps that we are going to discuss here. To get a home loan at low interest rate you must know how to get a home loan in Bikaner easily at low interest rate. Even when people have extra funds to spare to complete their dream house, they prefer to go for home loans. Home loans can be provided by the bank or any other money lender. People prefer home loans because it also provides them with some benefits like rate of interest, etc.
How to get a home loan in Bikaner?
This article will guide you on how to apply for a home loan in Bikaner in only 10 steps.
Step 1: Select a bank
The first step is to select a bank which will provide you with the best deals on home loans. Few of the top banks for home loans in Bikaner are:
- ICICI BANK: ICICI Bank provides lowest interest rates on home loans at 9.05%. This bank also helps you to avail subsidy benefit up to Rs. 2.67 lakh at effective rate of 5.11% under the Pradhan Mantri Awas Yojana Scheme of Government of India.
- BANK OF BARODA: Bank of Baroda provides their customer with fast processing services. The lowest interest rates on home loans is 8.35%.
- STATE BANK OF INDIA: SBI home loans are the largest mortgage lender in India. SBI provides interest concession for women borrowers. The lowest interest rates on home loans is 8.25%.
These are some of the top banks to consider for home loans in Bikaner.
Step 2: Application for Loan
After selecting the bank, the next step is to fill an application form for home loan. The information needed to be included in the form are:
- Personal details
- Residential address
- Income certificate
- Leaving certificate
- Property details
- Estimated cost of property
After the application form is filled, the applicant needs to attach a few valid documents with the application form for home loan. These documents include:
- Income certificate
- ID Proof
- Age Proof
- Address Proof
- Employment details
- Leaving certificate
- Bank statements
- Property details
After the application form is filled and the required documents are attached, then it should be submitted in the bank.
Step 3: Processing fees
After the submission of the application form is done, the applicant has to pay the processing fees to the bank. The processing fees are 0.25% to 0.5% of the total loan amount. For example, if the loan amount is Rs. 20 lakhs then the processing fees will be Rs. 5000 for 0.25% and Rs. 10,000 for 0.5% respectively.
The fees for the agent processing the home loan for the applicant will be given by the bank from the processing fees.
Some of the banks work with zero percent processing fees.
Step 4: Application Verification
After the application and documentation is done, the applicant has to wait for a call from the bank. The bank or any other authority handling the process verifies the application. It only takes 1 or 2 days for verification if the submitted application is correct.
Also, sometimes the bank calls the applicant to the bank and have a face to face interaction with applicant before the sanction of the loan. This is done so that the bank will know if the applicant is capable enough to repay the loan.
Step 5: Document verification
Many people apply for loan on a daily basis and to ensure that the bank approves the paperwork soon, the applicant should genuinely complete the process. The bank looks for any fake documents or any kind of fraudulent activity in the process which is not acceptable by the bank. It is a criminal offence which can lead to punishment.
The bank examines documents like:
- Residential address (previous as well as the current address)
- Employment address
- Credits of the employer
- Workplace contact number
- Residence contact number
Sometimes, a bank representative also visits the residential address or where the applicant works to verify the documents. Also, the references given by the applicant in the application form are also checked. This process enables trust between the bank and the applicant.
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Step 6: Approval Process
The next step which is the approval part is the most crucial step of the whole home loan process. This step can to sanction for the loan or it can be rejected. The whole process depends on the bank only. If the bank is not satisfied with the paperwork then there is a possibility about it being rejected. And if the bank is satisfied with the paperwork then the loan is approved or sanctioned.
A bank deeply checks the applicant’s documents like:
- Qualification, age and experience details
- Transaction details from the applicant’s bank
- Income certificate
- Current employer and the nature of employment
- Ability to repay the loan with the given interest rate
After all the checking, the bank finally approves the loan application. A sanction letter is given to the applicant.
Step 7: Process of offer letter
As soon as the loan is sanctioned or approved by the bank then the bank starts the process of a certified offer letter to the applicant which includes:
- Sanctioned loan amount
- Interest rate for the loan amount
- Whether the interest rate is fixed or variable
- Loan tenure details
- Mode of loan repayment
- Terms & Conditions or Policies if there is any.
Once the applicant agrees with all the details of the offer letter, then he/she has to sign on a duplicate copy of the offer letter for the bank records. The applicant should thoroughly read the offer letter before signing it. Also check if the interest rate of the loan amount is as it is discussed by the bank and the applicant before signing the offer letter.
Step 8: Processing the Property Papers
After the offer letter is accepted by the applicant, the bank then concentrates on the home property which the applicant wants to purchase. If the home property is not finalized by the applicant then he/she can request for a time duration to select a home property.
Once the property is selected by the applicant, he/she has to submit all the official/original documents of the home property to the bank. This document remains with the bank till the home loan is repaid by the applicant. Also, these documents serve as the security towards the loan for which the applicant has applied.
The original home property documents will include:
- Name of the seller
- Identification proof of the seller
- Address proof of the seller
- Name of the property
- Address of the property
- Written documents if the seller is only a broker not the actual owner of the property
- NOC (No Objection Certificate) from the legal owner of the property
After the home property papers are submitted to the bank, the bank then validates them for authentication. This step of process is termed as “legal check”. These documents are sent to the bank’s lawyer for an in-depth check. If the lawyer approves the documents, then everything is good to go. If not, then the applicant has to submit a few more documents for verification.
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Step 9: Technical check of the Site
Every bank is cautious with the loan it lends and the property it finances. For that, a technical check or double check is done. The bank sends a property expert to the home property which the applicant wants to purchase. This person can be a bank employee, civil engineer or someone from an architect’s firm.
The site verification includes:
- The stage in which the construction is.
- Quality of the construction
- Work progress.
- Time required for the construction of the house.
- Layout of the house.
- Validation of the builder.
- Property valuation.
- Environmental areas.
This is an important step of the home loan process in Bikaner. The applicant has to pay a fee for the technical check which can be taken upfront or can be charged separately. After the technical check, the expert checks the overall value of the home property. This helps the bank to determine the total loan amount so that the sanction is straightforward.
Step 10: Final Agreement
After Step 9 is completed, the lawyers clear all the paperwork and the final registration of the deal is done. The bank lawyer finalizes the loan document, drafts them and have them stamped as well as signed. After the paperwork is completed the applicant signs the agreement for home loan. The applicant also has to submit the cheques which are post-dated for the initial moths or the duration both the bank and the applicant has agreed upon.
After this, the original documents are handed over to the bank. As soon as the applicant signs the papers, everything is legally clear and the loan amount is given to the applicant via cheque. The applicant has to submit a few essential documents which will serve as his/her personal contribution to the home property.
The moment the loan is approved, the interest rates are charged from that day itself. So, each day costs! So, ensure the cheques are delivered on the given delivery date. Also, avoid paying any additional interest other than the interests mentioned in the agreement. Thank you, folks, for reading the article. I hope this article will help you regarding your problem with the whole process of home. It’s a tough process but hope through this article you are able to learn more about the process of home loan prior to your application for home loan.