As we see the world grow, we see there’s nothing permanent. Demands change, people evolve and lifestyle varies on day to day basis. But, generally, what stays constant is people’s urge to have a home of their own. And this emotion, evokes the need of the right Home Loan. Before the search for the right loan begins, there are a few key points a home-buyer needs to be aware of.

  • Check Home Loan Interest Rate: It helps while repaying the home loan without disturbing the monthly budget. You can also calculate your home loan installments using home loan EMI calculator
  • Housing Loan Eligibility: With Housing Loan Eligibility Calculator, home-buyers can get an idea on the optimum loan amount they can afford, without facing financial difficulties

And most importantly,

  • Loan sanction: On the basis of the submission of the required details & documents, the financial institution will analyse the application. From existing residential address to CIBIL score, complete information is thoroughly checked. Once the bank has validated all the details, loan amount is sanctioned
  • Loan disbursement: Post sanction of the loan, the loan amount will bedisbursed in one or more installments depending on the verification of theproperty and other terms and conditions as stated in the sanction letter

People often get confused between home loan sanction and disbursement. There’s awide difference between the two - a sanction letter only gives the home-buyerthe guarantee that the loan is approved and that the amount will be disbursed if the property related checks and all validations go through successfully. It does not mean the home loan amount will get disbursed without any further checks. A loan disbursement is the actual delivery of the amount from a bank account post property related verification & post any other required validations.

Here are different modes of disbursement:-

Full Disbursement

A full disbursement is when the bank hands over the entire amount in one time.If the home-buyer is purchasing home from a builder, then the cheque will begiven in the builders name.

Partial Disbursement

A partial disbursement is made in stages. While purchasing an under -construction apartment, the disbursement amount will be releases in stages basis the stage of construction.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.