What Happens Once the Home Loan is Sanctioned?

Would you like to buy a new house for you and your family? There is not a reason to be concerned at all. You can realize your ambition by applying for a simple home loan. These days, home loans are accessible at rather low-interest rates. The lender will review all the information you have supplied and determine whether or not you are qualified for the loan after you have selected your preferred lender and submitted all the necessary paperwork. To help you better manage your budget, you may use the home loan calculator to find out how much of an EMI you’ll have to pay if your loan application is accepted.

Your loan will be approved if the lender is pleased with all the information presented and determines that there is minimal risk involved for them in giving a home loan to you. Your loan will then be sanctioned, and the lender will send you a letter with all of the terms and conditions.

What does a Home Loan Sanction Letter Contain?

The following information is included in the home loan sanction letter that the lender has sent:

  • Total sanctioned loan amount
  • Home loan Interest rate
  • Interest rate type, either fixed or floating
  • Loan Tenor
  • EMI (as applicable) payable and schedule
  • Tax benefits available
  • Validity of the sanction letter
  • Other terms and conditions

If the offer in the sanction letter satisfies your needs, you can give your lender a signed copy of the letter indicating your acceptance of the offer. In order for the lender to begin the disbursement process, this acceptance must be communicated to them within a predetermined time frame.

What is the Procedure After Home Loan Sanction?

The distribution procedure starts once a home loan is approved. The disbursement process starts once the lender is happy with the property-related verification and evaluation. The lender thoroughly examines the property and verifies it legally and technically. These actions are taken:

Property Assessment: A technical officer examines the properties you wish to purchase and the properties used as collateral, as well as their state of upkeep and surroundings.

Document Examination – A lawyer also examines real estate paperwork. Only the original documents of property are accepted by the bank. The bank must also receive the No Objection Certificates (NOC).

Property Registration – To register your property, you must go to the sub-registrar’s office. You will be responsible for paying the registration fees and the stamp duty. The Sale Deed will then be delivered to the lending bank with one copy going to you.

Pay Your Share — The bank will require documentation of your loan-related contributions. Your down payment is this. You must provide the bank statement, together with information on a check or net banking, showing how and when you paid the builder.

Loan Disbursement – You must send your lender a check for the final processing fee once the assessment and document review is complete and the property is registered in your name. The lender prepares a check for the accepted loan amount after receiving the processing fee. Therefore, within 7 to 10 working days after document submission and clearing, the loan amount is credited in the builder’s or seller’s favor.

Loan disbursal comes next following house loan sanction. Depending on the terms and conditions of the house loan you received, your lender may use one of a wide variety of loan disbursal methods. Let’s examine a few of these choices.

Full disbursement

In this kind of distribution, the lending company gives the borrower the full amount of the sanctioned loan all at once. The check will be written in the builder’s name if you are purchasing a home from them.

Partial disbursement

The lending institution pays back the loan in installments in the event of a partial payout. For instance, the amount of disbursement will be issued in stages depending on the level of construction if you are purchasing a residential home that is still being built.

After this, the loan application procedure will officially begin with the payment of a processing fee. Additionally, the actual loan amount will be transferred straight to the builder or shown in your bank account.


Since it is the last step in the loan process, the procedure after home loan sanction is crucial one. Finally, the process of home loan starts at this point when the approved loan amount actually appears in your or the builder’s account. To make the loan sanction and disbursement process simple, make sure the loan amount is something you can repay on time. You can also receive a decent price and an also easy loan disbursal only if you have a solid relationship with the lender.

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