Everyone dreams of owning a home one day. Home loans serve as bridges that help people reach their goals, and disbursement of the loan amount becomes the first step on this journey.

The process, from applying for a home loan to getting the disbursal, can seem complicated at first. Thanks to the internet, everything is now much faster and efficient than it used to be. Before understanding the various stages and processes involved, it important to understand what the term 'home loan disbursement' means.

Home loan disbursement is the process where the approved loan amount is transferred from the bank to your account. The process involves three stages: form filling, document sanctioning, and disbursement.

How to initiate the home loan disbursement process?

It is important to understand the home loan disbursement is the last stage of getting a home loan. Therefore, all processes and procedures before it should be cleared and approved by the bank to step into the last phase. The prior proceedings include an approved home loan application, verified self and property documents, processing of the down payment, to name a few. Once these are done, the next step involves the payee requesting the bank to disburse the approved loan amount.

There are two ways to initiate the home loan disbursement process:
  1. Offline request: Visit your bank branch and meet your relationship manager. Fill in the home loan disbursement form and submit.

  2. Online request: Go to your bank’s official website and click on the home loan tab. Clear any dues and then file for loan disbursement by filling the e-request form.

During this phase too, documentation and form filings need to be accurate and verified. For instance, the status of the property for which the loan is being taken needs to be shown. If it is still under construction, details of the builder also get included in the form. So, make sure that you have all the documents ready.

With this, all processes from your, i.e., the customer’s side, are done. The bank will now process your request, and the loan amount will soon get transferred to your account.

What are the various home loan disbursement stages? 

A closer look at your loan agreement will reveal the home loan disbursement stages. If your property is fully constructed, the amount usually gets fully transferred, but if it still under construction, the money mostly comes in phases. You will be notified of the period of each stage and amount per stage beforehand. EMI, too, is proportionate to the amount of loan disbursed, i.e., if you are receiving the amount in stages, your EMI will be according to the amount received, and once full amount gets transferred, the EMI goes up too.

What follows this is your journey of building the home of your dreams!

Learn more about your home loan eligibility here.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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