Loan Against Property
- The applicant submits a loan application along with the necessary documents, including property documents, income proof, identity proof, address proof, etc.
- The submitted documents are reviewed and verified for authenticity and completeness.
- Property documents, such as ownership title, property valuation, and legal clearance, are scrutinized.
- A professional valuer assesses the value of the property to determine the loan amount that can be offered.
- The Loan-to-Value (LTV) ratio is calculated based on the valuation report.
- The applicant's creditworthiness is evaluated by checking their credit score and credit history.
- The applicant's existing financial obligations and repayment history are analyzed.
- The applicant's income and financial stability are evaluated to ensure their ability to repay the loan.
- Debt-to-Income (DTI) ratio is calculated to assess the applicant's debt burden.
- Legal experts verify the property's ownership, clearances, and other legal aspects.
- Any potential legal issues or encumbrances on the property are identified.
- Based on the property valuation and applicant's financial profile, the loan amount, interest rate, tenure, and repayment schedule are determined.
- The loan application, along with all supporting documents, is reviewed by an approval committee.
- If the applicant meets all criteria and the property's legal and financial aspects are satisfactory, the loan is approved.
- An offer letter detailing the terms and conditions of the loan is provided to the applicant.
- The applicant signs the loan agreement and provides any additional documents required for finalizing the loan.
- The loan amount is disbursed to the applicant either as a lump sum or in installments, as agreed upon.
- The applicant is provided with the repayment schedule and instructions for making payments.
- Regular communication and support channels are established to address any queries or concerns.
- The lender monitors the loan repayment and ensures that the borrower adheres to the agreed-upon schedule.
- Collections and reminders are sent to the borrower for timely payments.
- Once the loan is fully repaid, the lender releases the property documents and issues a closure statement.
- In case of any default, the lender initiates appropriate actions as per the terms of the agreement, which may include legal proceedings for repossession.
Terms and Conditions
- Specifies the approved loan amount, which is a percentage of the property's value.
- Defines the rate at which interest will be charged on the loan amount. It can be fixed, floating, or a combination.
- Specifies the period over which the loan needs to be repaid, which can range from several years to decades.
- Outlines the monthly payment that includes both principal and interest.
- Specifies the terms for repaying the loan before the designated tenure. This might include prepayment penalties or fees.
- Specifies any fees or charges associated with processing the loan application and documentation.
- Specifies the maximum percentage of the property's value that can be financed through the loan.
- Specifies the property being used as collateral for the loan.
- Outlines the consequences if the borrower defaults on the loan, including possible foreclosure or legal action.
Defines the charges that will be imposed if the borrower fails to make EMI payments on time.
Outlines the process of property valuation that the lender will use to determine the loan amount.
Specifies that the property's ownership cannot be transferred during the loan tenure without the lender's permission.
Informs the borrower to notify the lender in case of a change in employment or financial situation.
Specifies the types of insurance (like property insurance) required during the loan tenure.
Outlines the permissible uses of the loan amount (e.g., business expansion, education, medical expenses).
Outlines the process for cancelling or withdrawing the loan application before approval.
Describes how the loan amount will be disbursed to the borrower.
Specifies the legal jurisdiction that will govern the loan agreement.
Outlines the procedures for resolving any disputes that may arise between the borrower and the lender.