The first step toward owning your home dream is to apply for a home loan. The following is the step-by-step guide to avail of an instant and hassle-free home loan. There may be minor changes in the application process of one lender to another. Below is the general application process that is common to most banks. 

Here are the steps to avail of a Home Loan 

The following are the steps that you need to complete to avail of a home loan:

  1. Fill in the loan application form & submit the documents

Fill in the required documents information such as personal details, address proof, educational details, employment details, etc., and attach the necessary documents. 

  1. Pay the processing fee

The next step is the payment of processing fees. The processing fee will range from 0.25 % to 0.50 % of the requested loan amount.

  1. Discuss with the lender 

Once the application is submitted, the candidate has to wait till the lender checks the application which may take 1 to 2 days. In some cases the lender expects the applicant to have a face-to-face meeting with them to verify the given information. 

  1. The valuation of the documents is done by the lender 

The lender checks all the submitted documents are original. 

After document valuation, the process of approval or sanction is done

In this stage, the lender will decide whether to approve or reject your application. 

  1. Processing the offer letter 

After loan approval, you will receive a processing letter from the bank.

  1. Processing the property paper and legal check

The next process is the property paper and legal check. The bank examines the intent of the property purchase. Furthermore, the bank enquires about the property papers and checks the legal requirements.

  1. Technical check and site estimation 

The lenders are highly cautious about financing your home property. Therefore, a technical inspection or a double check is further done. The bank assigns a property expert to examine the premises that the applicant plans to buy.

  1. The final loan dealing is done

Once the lender finishes up with legal, technical, and double-check, the lender does a final loan dealing. 

  1. Sign the agreement

After the completion of all the paperwork, the loan applicant needs to sign the required documents. 

  1.  The last step is loan disbursal 

Once everything is legally clear, the loan amount is provided through a cheque. 

Also Read: What is a good CIBIL™ Score for Home Loan?

The following are the eligibility criteria for a home loan

The eligibility criteria for a Home loan will differ from one lender to another. Some basic set of eligibility is listed below:


Credit Score

A credit score of 750 or above 


The age category is 18-70 years 


The applicant should have a monthly income should be 25,000

Work experience 

The minimum work experience is 2 - 3 Years

Loan amount 

The lender will decide the loan amount 

Property type

Completed, under construction, land/plot, buy land and build, built on own land

Loan-To-Value ratio 

Loan-To-Value ratio of up to 90%


The candidate should be the Permanent Resident or Non-resident Indian 


Salaried or non-salaried 


Required documentation to avail of a home loan

To get a home loan the applicant should submit certain documentation to the bank. Some of the general documents required to apply for a home loan such as  PAN card, address proof, income tax payment proofs, bank statement, etc.