Hyderabad: Of late, people belonging to all sections are coming forward to avail of loans to fulfil their lifelong dreams and aspirations. If you decide to make this festival unforgettable by going for a home or vehicle loan, first know how to get the required loan amount from the bank. Provide transparent information in the preliminary documentation based on which the bank will initially inform you how much loan you are eligible for. But the final disbursement will depend on all required documents you finally provide and on the value of the property you acquire.
In respect of personal and mortgage loans, one lump sum loan amount will be deposited in your bank account, which is called full payment. The bank will inform you how much amount it will transfer first under the home and education loans. Later, depending on the information provided by the builder or educational institution, the remaining amount will be released in a phased manner. A home loan will be disbursed depending on various stages of construction till its completion. If it is a finished home, the total loan amount will be paid to the seller as per the registered sale agreement signed with the buyer.
In the case of educational loans, the banks will sanction loan amounts periodically as and when the respective institutions collect fees. Sometimes, the loan amounts will be deposited directly into the accounts of the institutions. Some banks deposit amounts only in the accounts of primary recipients of the loans. However, loans pertaining to expenses other than tuition fees will be deposited only in the recipients' accounts.
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Don't get surprised if your bank refuses to give the total loan that it offered initially. Usually, the initial estimated loan amount is arrived at by the bank officials based on some fundamental items. Sometimes, this estimated loan amount is likely to be reduced. The bank officials will inspect the house under construction before sanctioning a home loan. They will look at the location, area, quality of construction, any litigation on site and civic permissions.
Home will be issued only when all the factors from site title to the construction quality are acceptable. The banks will also estimate the value of the house. If the estimated value of the house is lesser than the promised loan amount, the bank will reduce the total amount of disbursement. The house value and loan ratio will finally determine the total loan that the bank will give. Besides, the term of the loan will also play a role in deciding the total sanctionable loan amount. Only based on all these parameters, the final loan will be released.
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The recipient of a home or car loan would have to make some 'down payment' towards the total cost of the product. Mostly, the banks will give loans up to 80 to 90 per cent of the total value of a house. The loan recipient or home buyer will have to pay the remaining amount. The banks will release the loan only when the recipient will show proof of 'down payment' or 'margin money'.
Immediately after releasing the loans, the banks will count the interest and then they will start collecting the equated monthly instalments (EMIs). In some cases, there is a likelihood of giving a moratorium during which period no EMIs will be collected in home or vehicle loan accounts. All such information should be collected from the bank in advance. While taking a loan, the recipient should give all information to the banks without hiding any detail. Only then, the banks or financial institutions will release the final loan amount without causing any disruptions.
