Home Loan for Bank and Private Employees

Living in a self-owned house is a dream of many but realised by few. Many are scared of the high property prices and the enormous home loan they will have to undertake. However, if you are a public or private sector employee, there are many reasons why you shouldn't think twice before applying for a home loan and fulfil your dream of owning a home.

• Rate of Interest The interest rate on home loans for bank and NBFC employees is usually lower. For private employees, the interest rate depends largely on salary one is drawing and job security. The exact interest rate varies from lender to lender.
• Balance Transfer Banks and even private-sector employees can opt for a balance transfer of home loan if their current financial institution is offering a higher rate of interest on the loan amount.
• Loan Amount The loan amount for financial institutions employees ranges from Rs. 30 lakhs up to Rs. 10 crores. It depends on the eligibility criteria.
• Loan Tenure Employees of both the private and public sector are likely to qualify for a long tenure of the loan, going up to 30. This makes the Equated Monthly Instalments (EMIs) easier to pay for and affordable.
• Documentation The documentation and verification processes are hassle-free and take less time.
• Foreclosure There are no charges if any bank or private sector employee decides to foreclose their home loan or make a part pre-payment before the tenure ends.

Step 1: Filling the Form

The first step is filling the forms with your basic details and attaching the required documents.

Step 2: Payment of Processing Fee

After submitting the form and documents, you need to pay a processing fee ranging between 0.25% to 0.75% depending on the financial institution where you work. This is charged for maintaining your loan account.

Step 3: Checking the Documents

Once this is done, the financial institution takes 1-2 days to check the documents. Sometimes the bank requires you to visit them for a face-to-face interview. This is done to ascertain that you will be able to repay the loan with interest.

Step 4: Validating the Documents

After the documents are checked and the processing fee is paid, the lender validates the documents. Submitting any fake document is a criminal offence. So, make sure that all your documents are genuine.

Step 5: Loan Sanction

In this step, the financial institution decides to accept or reject the sanctioning of the loan. If the lender is satisfied with your documents, it will communicate the loan amount to you.

Step 6: Technical Check of the Site

The lender will send its official or a civil engineer to inspect the site and estimate the property's value. It is also done to verify the authenticity of the submitted property documents. There might be a small fee associated with this process.

Step 7: Loan Agreement

You will have to sign the loan agreement after completing the paperwork. You have to submit post-dated cheques for the duration agreed upon with the lender. The property papers are handed over to the financial institution at this stage.

Stage 8: Disbursal of Loan

Once everything is clear, the loan amount is given through a cheque.The procedure for sanctioning home loan for bank employees and private home loans is simple as the documentation doesn't take much time. So, if you want your dream of owning a house to come true, don't hesitate to apply for a home loan .

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.