Home Loan Procedure 2025 - Step by Step Process to Get Home Loan

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A Home Loan can help you purchase or build a house by borrowing money from a bank or financial institution. The Home Loan process is now quicker and more convenient than ever. Whether you are buying your first home or upgrading an existing home, knowing the importance of the Home Loan process is essential. Applicants must meet the eligibility criteria, be financially prepared, provide required documents and maintain a strong credit score to complete the Home Loan process.

A Step-by-Step Guide to Availing a Home Loan

Step 1: Check your Eligibility

Before you initiate the Home Loan application process, ensure that you check your eligibility. Banks use specific criteria to evaluate whether an applicant is eligible for a loan. You can easily check your eligibility by using the Home Loan eligibility calculator available on the ICICI Bank website. Enter your income, ongoing EMIs, illustrative interest rate and desired Home Loan duration and you will receive an instant response with the loan amount that you are eligible for. 

Step 2: Select the loan amount and tenure

Once you have determined your eligibility, you need to select the loan amount and tenure. This is a critical stage in the Home Loan process as it impacts your monthly EMIs and interest payments. The loan tenure is the duration of the loan repayment which can go up to 20 years.

Step 3: Submit the application along with documents

After selecting the loan amount and tenure, complete the loan application with all the necessary details.

• Submit the required documents to proceed with the Home Loan process.

• Provide KYC documents for identity proof and address proof such as Aadhaar Card, PAN Card or utility bills.

• Include bank statements and relevant property documents.

• Keep all documents handy to ensure the Home Loan process is smooth and quick. You can easily submit these documents online through ICICI Bank Net Banking or the iMobile app.

Step 4: Get the loan sanctioned.

The lender will review your application for approval. If your application is approved, the lender will sanction the loan amount and issue a Sanction Letter. The Sanction Letter will contain the loan amount, interest rate and other important details.

Step 6: Get the loan disbursed

Once the verification of your documents has been completed, the loan amount will be disbursed to the property seller or builder. This marks the completion of the Home Loan procedure, allowing you to proceed with your property purchase.

Taking a Home Loan at fixed interest rate or floating interest rate

A Home Loan with a fixed interest rate has a constant interest rate for the entire loan tenure. This means the EMI amount will remain fixed throughout the loan repayment period. This type of loan is suitable for people who prefer stability and wish to avoid fluctuations in repayments. However, fixed interest rate is usually higher than floating interest rate.

On the other hand, a Home Loan with floating interest rate has an interest rate that is subject to change, based on market conditions. This interest rate is linked to the lender’s base rate or based on the Repo Rate set by the Reserve Bank of India (RBI). This means the EMI amount can increase or decrease during the loan repayment period. This type of Home Loan is ideal for people ready to take on the fluctuations in their loan repayments and wish to take advantage of lower interest rates when the market conditions change.

Conclusion

Knowing what the Home Loan process is and preparing ahead helps in making the journey hassle-free. With ICICI Bank’s user-friendly platforms such as Net Banking and the iMobile app, you can manage the Home Loan procedure efficiently. Before you apply for a Home Loan, remember to check your eligibility, choose the kind of property and the type of Home Loan you are planning to buy, select the loan amount and tenure and submit the required documents.

FAQs

1. Can I track the progress of my Home Loan application?

Yes, with ICICI Bank, you can track the progress of your Home Loan application through online modes like the iMobile app or Net Banking.  You can also contact Customer Care for real-time updates on your application status.

2. Are there any prepayment charges for a Home Loan?

Prepayment charges depend on the loan type and interest rate. A Home Loan with a floating rate of interest does not have any prepayment charges. You can visit to know more.

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