How long does it take for a home loan to be sanctioned after applying?

Home loan sanction process can take anywhere from a few days to a few weeks

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For most of us, home loan is a necessary step towards home ownership. As aspiring home owners eagerly await approval, a common question arises: How long does it take for a home loan to be sanctioned after applying?

While the timeline can vary, understanding the process and current trends can help applicants set realistic expectations and navigate the journey more smoothly.

Factors influencing the timeline

Several key factors can impact how quickly a home loan is sanctioned.

 

Documentation: Complete and accurate documents play a crucial role. Missing or incorrect paperwork can lead to delays.

Applicant’s credit profile: A good credit score and clean financial history can expedite the process, while red flags may necessitate additional scrutiny.

Title issues: Disputes or encumbrances on the property title can cause delays during the title search and legal verification.

 

Self-employed applicants: Verifying income for self-employed individuals often takes longer than for salaried applicants.

 

Loan amount: Usually, larger loan amounts undergo more rigorous checks, potentially extending the timeline.

Lender’s internal processes: Each bank or HFC has its own procedures and approval hierarchies, which can affect processing speed.

Sanction letter: Once your loan is sanctioned, you will receive a sanction letter detailing the loan amount, interest rate, and repayment terms.

 

“The industry typically offers loan sanctions within two days for salaried customers and 4-5 days for self-employed customers,” said Sarosh Amaria, MD at Tata Capital Housing Finance Limited.

 

Alok Aggarwal, Chief Executive Officer, Muthoot Homefin explains how to avoid delays.

“To ensure a smoother and quicker sanction process, focus on submitting all required documents accurately and promptly. Proactively engaging with the lender and responding quickly to any additional information requests can help expedite approval. Choosing a property with a clear title and legal compliance will also reduce potential hurdles in the sanctioning process,” Aggarwal said.