A Home loan is the first step to fulfill your dream of owning a home. The final stage of the loan process is the disbursement. So, what is disbursement? It is the stage when the lender (the housing finance company) pays out the loan proceeds to the seller (in case of a resale property) or the builder (in case of a new property) depending on the terms of the home loan agreement you have entered into with the lender.
The housing finance company will disburse the loan amount on completion of the following stages:
- The property has been technically appraised
- All legal documentation has been completed
- You have invested your own contribution in full (i.e. made the down payment).
You can then make your request for disbursement – offline or online. To make your request offline, you need to visit the office/branch of the housing finance company. Making your disbursement request online will require you to visit the website of the housing finance company, login with your user ID/loan account number and password, click on the ‘disbursement request’ tab, upload your ‘own contribution’ details (upload receipts), update the status of the property (ready or under construction). For an under-construction property, fill in the details of the stage of construction and upload the necessary documents including builder’s demand letter, architect’s certificate, etc. For ready property, simply add the demand letter date. You will then need to add the payment details (the payee’s account details); this would be the builder in case of an under-construction property; it would be the seller in case of a ‘resale’ property. You can make your online disbursement request from the comfort of your home or office.
The loan will be disbursed either in stages or in full depending on the stage of completion of construction. The disbursement schedule will be stated in the loan agreement.
The lender will consider only the construction stage and not any instalment payment timelines stipulated by the builder.
In case of full disbursement, your EMI payments may start from the month following the month in which the full disbursement has been made(check the EMI schedule in the home loan agreement).
In case of partial disbursement, you may need to pay ‘pre-EMI’ interest till full disbursement is made after which EMI payment starts.
Disbursement of your home loan is the key to get access to your dream home.