If you search for India's top investment options, real estate investment would be at the top. Real estate is a broad category. There are different types of properties you can choose from. Residential properties are a popular choice. You gain ownership of your dream home and enjoy incredible capital appreciation. It also lets you boast pride of ownership. If you have been contemplating investing in a residential property for a while, now is a good time to do so.
There are incredible residential projects in the pipeline and affordable financing options available. A Home Loan is a viable financing option to explore. It lets you borrow a significant amount at a competitive interest rate for a maximum tenure of 30 years based on your eligibility. You can apply for the Loan at any preferred bank. Upon application, the bank takes reasonable time to verify your documents and determine your eligibility.
The bank may approve your Loan request and extend an offer based on your eligibility. They provide a Home Loan sanction letter. Let us understand this letter better.
About the Home Loan sanction letter
A Home Loan sanction letter is a formal document stating the bank has approved your request. It mentions the sanctioned Loan amount and repayment terms. The bank provides the Home Loan sanction letter via post and email. Referring to the sanction letter gives you a clear idea of the Loan offer. Keep the sanction letter handy, as you may also need to provide it to the residential project builder to seal the deal.
Details of the Home Loan sanction letter
The Home Loan sanction letter differs between banks. Here is a generic list of details included in the sanction letter that you should not miss out on:
- Loan sanctioned amount
- Loan interest rate type – fixed or floating
- Home Loan interest rates
- Repayment tenure
- Equated Monthly Instalments
- Repayment schedule
- Prepayment and foreclosure charges
- Collateral details
- Terms and conditions
- Sanction letter validity period
Carefully review all the details mentioned, as the exact details will be in the agreement. If you want changes to the Loan details, request them before signing the sanction letter. This is because once the sanction letter is signed, you are legally connected with the bank. Once you sign the sanction letter, the bank takes a few days to draft the final Loan Agreement. Like the sanction letter, read the agreement thoroughly and sign only when all terms are acceptable to you.
The bank will start the Loan disbursement process soon after you sign the agreement. You can expect the Loan amount to be disbursed according to the decided timeline.
