{"id":528,"date":"2021-03-01T04:57:50","date_gmt":"2021-03-01T04:57:50","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=528"},"modified":"2022-08-08T11:21:10","modified_gmt":"2022-08-08T11:21:10","slug":"processing-of-home-loan-mortgage-loan","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/mortgage-loan\/processing-of-home-loan-mortgage-loan\/","title":{"rendered":"Step-By-Step Guide Of Internal Processing Of Home Loan & Mortgage Loan"},"content":{"rendered":"\n
\"Processing<\/figure>\n\n\n\n

Even\nthough the lender -Bank\/NBFC\/HFC differ in their marketing style, advertisement\napproach with ROI (rate of interest) & PF (processing fees), etc., the\ninternal home loan procedure remains the same with all lenders. Many of us are\nalready aware of the loan process for various\ntypes of loans<\/strong><\/a>. But for those who are still unaware or have a fair\nknowledge on the home loan processing, here is a step-by-step guide for the\ninternal processing of the home loan & mortgage loans.  <\/strong><\/p>\n\n\n\n

1) Sanction Process<\/strong>– When a loan file is\nlogged-in with the lender it passes through various departments before it gets\nfinally sanctioned. No single person\/desk carries out the entire process.\nIn-fact the file is scrutinized by many hands before it is finally forwarded\nfor sanction.<\/p>\n\n\n\n

a) Initial Scrutiny of the documents &\nduly signed form<\/strong>. The login desk verifies for any incomplete documentation,\nhighlights the list of pending documents, verifies the signatures on the form\nand then logins the file into the system while collecting the non-refundable\nlogin fees for the home loan\/ mortgage loan.<\/p>\n\n\n\n

b) The\nlogin desk then makes a CIBIL check of the file<\/strong><\/a>. The CIBIL score of the\nborrower is then attached with the file. (Also Read – How multiple loan inquiries impacts your CIBIL score<\/strong><\/a>)<\/p>\n\n\n\n

c) The\nRCU<\/strong> (Risk Containment Unit) team\nthen checks for any fraudulent \/ forged\ndocumentation<\/strong>. The borrower\u2019s KYC -pan card, Aadhar card along with the\naddress proofs provided are counter verified with the government official\nsites. The RCU may sample the file from time to time if they doubt any\nsuspicion in documentation.<\/p>\n\n\n\n

d) The\nnext is FI visit <\/strong>which is arranged\nat borrowers residential & official address mentioned in the application\nform. FI is the field investigation<\/strong>.  A physical verification is done to verify the\nborrower\u2019s details as mentioned in the loan application such as his personal\ndetails- family background, property details & employment details-\ndesignation, experience, etc. A FI desk then sends the FI report to the loan\ndepartment. The FI is conducted by the lender\u2019s internal team. A positive FI\nreport is crucial for sanctioning the home loan \/ loan against property<\/strong><\/a> while a negative FI will reject the\nloan application. <\/p>\n\n\n\n

e)\nAlong with all the remarks from FI desk, login desk & RCU team the file is\nthen finally forwarded to the credit manager, who is the authority for\nsanctioning the loan. The credit manager then analyzes the case, calculates the\nhome loan eligibility<\/strong><\/a> \/ mortgage loan eligibility taking\ninto consideration the factors such as risks involved, FOIR (fixed obligation\nagainst income ratio), LTV (loan to value) norms and then calls the borrower\nfor a telephonic Personal Discussion <\/strong>to\nauthenticate the borrowers loan requirement needs. On successful discussion the\nfile is further forwarded for sanctioning to the higher authorities (of\ncredit), who then gives their approval. The credit managers reserve the\nauthority to approve or withdraw or reject the case at any stage of the\nprocessing if they aren\u2019t comfortable with any information. (Must Read- How To Read Home Loan Sanction Letter Of Bank<\/strong><\/a>)<\/p>\n\n\n\n

f) The\napproved cases are then sent for processing fees & rate approvals to the\nsales hierarchy. (Must Read- All costs incurred for availing home loan<\/strong><\/a>)<\/p>\n\n\n\n

g)\nOnly on receiving all the relevant approvals the final sanction letter is\nprovided. Sanction letter is issued on the letter head of the issuing lender –\nBank\/NBFC. (Also read – Why Home Loan Interest Rates Of NBFCs Higher Than Banks<\/strong><\/a>)<\/p>\n\n\n\n

On the\nother hand, with nationalized banks there are no such individual departments\nfor loan sanctioning and the process is simple since the sanction process is\nsingle handled by a bank official. (Must read – Difference in applying home loan with public bank and\nprivate bank<\/strong><\/a>)<\/p>\n\n\n\n

The\nturnaround time for a loan sanction is up-to 5-7 working days which further\ndiffers from lender to lender. The sanction letter is valid for a maximum\nperiod of 1 year, depending upon the lender Bank\/NBFC.<\/p>\n\n\n\n

Also Read: <\/strong>Pre- Sanction Home Loans<\/strong><\/a><\/strong><\/p>\n\n\n\n

2) Technical Process<\/strong>– A physical\ninspection of the property is conducted to know the current market value &\nthe age of the property so as to ascertain the lender does not over lend of the\ncost of the property. The property technical is again a process of 3-5 working\ndays, and is usually carried out by the hired external agencies by the lender\nBank\/NBFC. The Xerox of the property papers i.e., the agreement copy, index 2,\nOC, property tax, CC & plan copy are given to these agencies to generate\nthe technical. The generated technical report is handed over to the respective\nloan processing branch.<\/p>\n\n\n\n

Many\ntimes the technical is initiated at the initial stage of the file login\nprocess. This helps to reduce the turnaround time of the loan process.<\/p>\n\n\n\n

3) Legal Process \u2013 <\/strong>Such is the process\nwhich is to be initiated only after the loan is sanctioned. The legal of the\nborrower\u2019s property papers is mandatorily carried out in order to ascertain the\nproperty\u2019s clear title. A Xerox set of all of property papers (index 2, prior\nchain of agreement, OC, etc.) is sent to the property lawyers with whom the\nlender has a tie-up with who then generates the legal report for the property.\nThe lawyer then arranges to send the legal report via courier to the respective\nbranch. The entire legal generation is the process of 3-5 working days.<\/p>\n\n\n\n

4) Disbursement Process<\/strong> \u2013 On the\nsuccessful completion of all the above-mentioned processes, the last internal\nprocess is for the home loan \/ mortgage loan disbursement. A disbursement is\nthe process of another 7-8 working days. A docket kit (lender\u2019s disbursement\nagreement kit) is duly signed by a borrower and co-borrower<\/strong><\/a>. All original property papers along\nwith the docket kit needs to be submitted to the lender. The lender ensures the\nborrower pays all loan charges such as processing fees, administrative- legal\n& technical charge, franking & stamp duty, etc. before the final\ndisbursement of the home loan<\/strong><\/a>\/ mortgage loan<\/strong><\/a> amount. The detailed disbursement\nprocess will be as below:<\/p>\n\n\n\n

a) Docket Login. <\/strong>The duly signed and\nfilled docket kit is login into the system. It is checked thoroughly. Necessary\ncorrections are made if required.<\/p>\n\n\n\n

b) A DM sheet is made<\/strong>. A DM is the credit\nsheet which is to be filled with the important details of the clients which\nincludes filling his property details, cheque favouring details, cheque date,\netc.<\/p>\n\n\n\n

c) RCU. <\/strong>Once again, the RCU team conducts\nthe document check of all the original papers submitted. The property\npapers-index 2 copy, etc are counter checked with the sub-registrar\u2019s online\nlink facility. The TDS, form 26AS and any tax related documents are confirmed\nthrough online portal of IT department of India. The RCU may sample the\ndocument if found suspicious. Till such time the disbursement is kept on hold\nuntil the successful re-verification.<\/p>\n\n\n\n

d) Sign Up by Credit<\/strong>. A complete set of\ndisbursement file along-with the RCU verification, DM sheets and the docket kit\nare then forwarded to the credit manager for the disbursement sign up. The\ncredit manager then studies, reviews, re-investigates on the file,\nre-calculates and re-confirms the eligibility figures with the lender\u2019s laws\n& funding policies. It takes nearly 1-2 hours for a credit manager to\nreview a file. Finally, on the satisfactory review the credit manager sign-up\nthe docket. It is a significant part of disbursement; the credit manager is the\nsignatory authority who certifies the check on financial credentials of the\nborrower and accordingly approves the loan amount.<\/p>\n\n\n\n

e) The loan amount cheque is finally to be\nprinted<\/strong>. The responsibility is delegated to the operation team. Prior to\nthe cheque printing the operation team once again re-checks for any queries\nsuch as cheque clearance of the loan charges, OTC clearance etc. Any query\nemerged if any is to be sorted out on priority to ensure the timely cheque cut\nof the loan borrower. The cheque is then handed over to the borrower or the\nloan amount is disbursed in account through RTGS.<\/p>\n\n\n\n

There\nare banks who also allow the OTC format of disbursement. Under such format a\ndisbursement cheque cut is done prior to the submission of the original\ndocuments. The RCU verification is compulsorily done on submission of the OTC\ndocuments. Only after the OTC clearance the cheque is handed over to the\nborrower.<\/p>\n\n\n\n

The\nturnaround time for processing the home loan & mortgage loan is about\n15-20working days, depending upon lender to lender.<\/p>\n\n\n\n

Get Best Home Loan Deals From Top\nBanks<\/strong><\/h3>\n\n\n\n
\n Bank\n Name<\/strong>\n <\/td>\n Rate\n Of Interest<\/strong>\n <\/td>\n Processing\n Fees<\/strong>\n <\/td>\n Tenure<\/strong>\n <\/td><\/tr>
\n ICICI\n Bank<\/strong><\/a><\/strong>\n <\/td>\n 6.90% p.a. – 8.05% p.a.\n <\/td>\n 0.30% of the loan amount + applicable GST\n <\/td>\n Up-to 30 years \n <\/td><\/tr>
\n HDFC\n Bank<\/strong>\n <\/td>\n 6.80%* p.a. onwards\n <\/td>\n Rs.5900\/- + applicable GST For Salaried\n  \n 0.30% of the loan amount + applicable GST -For Self\n Employed\n <\/td>\n Up-to 30 years\n <\/td><\/tr>
\n HDFC\n Ltd.<\/strong><\/a><\/strong>\n <\/td>\n 6.90% p.a. – 7.85% p.a.\n <\/td>\n 0.50% – up-to 1.50% of the loan amount + applicable\n GST\n <\/td>\n Up-to 30 years \n <\/td><\/tr>
\n Canara\n Bank<\/strong><\/a><\/strong>\n <\/td>\n 6.90% p.a. – 8.90% p.a.\n <\/td>\n Rs.10,000\/- + applicable GST\n <\/td>\n Up-to 30 years\n <\/td><\/tr>
\n CLICK\n to get the complete chart <\/strong><\/a><\/strong>\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Loanfasttrack\nis a Mumbai based loan provider company since 2015 offering loan services in\nMumbai on– housing loan in\nMumbai<\/strong><\/a>, mortgage loan in\nMumbai<\/strong><\/a>, personal loan in\nMumbai<\/strong><\/a>,<\/a> <\/a>business Loan in\nMumbai<\/strong><\/a>, unsecured business loans<\/strong><\/a>,home loan transfe<\/strong><\/a>r<\/strong><\/a>, top-up loans and loan transfers<\/strong><\/a>. Loanfasttrack is a direct\nsales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank,\nCiti Bank, Piramal Housing Finance, etc.<\/p>\n\n\n\n

Contact\nLoanfasttrack<\/strong><\/a> on: www.loanfasttrack.com<\/em><\/strong><\/a> or call on 9321020476<\/em><\/strong> or email on info@loanfasttrack.com<\/em><\/strong><\/a>.<\/strong><\/p>\n\n\n\n

Loanfasttrack\u2019s\nspecialized services includes providing:<\/p>\n\n\n\n