Sanction Letter for Home Loan: Steps to Get a Quick Approval

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What is a Home Loan Sanction Letter?

When applying for a Home Loan, an important step is receiving the Sanction Letter. This document confirms that your loan has been approved by the bank and contains important details such as the sanctioned amount, interest rate, tenure and other terms, giving you formal assurance of your loan eligibility.

Understanding the process of getting a Home Loan Sanction Letter

1. Apply Online

Visit the ICICI Bank website or open the iMobile app to start your Home Loan application. Provide basic details like your PAN, Aadhaar Number, income details and property preferences. Verify via OTP to complete the KYC process.

2. Check Eligibility & Loan Options

Use the online eligibility calculator to find out how much you can borrow and the potential EMI amount. You can also opt to add a co-applicant here to improve eligibility.

3. Pay the Processing Fee

You’ll be asked to pay a processing fee, which might include charges such as CERSAI and credit bureau fees. Once paid, the Bank issues a provisional approval.

4. Upload the Required Documents

Submit your KYC documents and income proofs, bank statements, property papers and any other documents through the online portal or the iMobile app. For convenience, ICICI Bank even offers doorstep pick-up in some cases.

5. Receive the Sanction Letter

Once your documents are verified, ICICI Bank shares a Sanction Letter detailing your loan amount, interest rate, tenure, EMI and other terms and conditions.

6. Complete Property & Legal Checks, Then Sign

You’ll need to submit property-related documents (sale agreement, necessary certificates, etc.) before final legal checks. After verification, you have to sign all the loan documents.

7. Get Your Loan Disbursed

After everything is verified, the loan amount is disbursed, either in full or in stages, based on your agreement. The funds go straight to the seller or builder.

Documents required for a Sanction Letter

Here are the important documents required to get a Sanction Letter:

• Valid identity proof

• KYC documents

• Employment proof

• Income proof (recent bank statements and salary slips)

• Income Tax Returns (past year or as specified by the bank)

• Additional documents based on applicant type.

Experience new-age Home Loan application with online loan sanction

Gone are the days when Home Loan applications used to take a long time and required multiple visits to the lender. With a digital application process, you can now apply online for a Home Loan and get it sanctioned without ever having to visit the lender. You can always contact the support team of the lender to get any the assistance they need.

Detailed information about the online Home Loan application process can also be found on the official website of the lender. Ensure that you select a reputed lender known for offering Home Loans at competitive rates.

FAQs

What is a Home Loan Sanction Letter?

A Sanction Letter of a Home Loan is a formal document from the bank confirming your Home Loan eligibility. It includes details like the sanctioned amount, interest rate and repayment terms. It's essentially a provisional approval that you can use as proof of funds for purchasing the property.

What is the validity of a Home Loan Sanction Letter?

The validity of a Home Loan Sanction Letter varies, but it's generally between 3 to 6 months. This period gives you time to finalise a property before the terms expire. You might need to reapply if the Sanction Letter expires.

Can I apply for a Home Loan Sanction Letter online?

Yes, these days, banks allow you to apply for and receive a provisional Sanction Letter online. The process is much quicker and more convenient than a traditional in-person application.

How is a Home Loan Sanction Letter different from in-principle approval and disbursement?

In-principle approval is an initial eligibility check based on your finances. The Sanction Letter is a formal, conditional approval after document verification. Disbursement is the final step where the actual funds are released.

T&C

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