How Much Time It Takes to Disburse Home Loan?

The home loan disbursement time after approval is generally between 1 and 2 weeks but it might vary from one lender to another. When I visited the ICICI Bank, this is what the bank official told me. It can take more time in some cases so let me share my insights on this topic.

How Much Time it Takes to Disburse Home Loan after Sanction?

Home loans usually get disbursed within one or two weeks but that depends on the lender. If the applicant has everything in form and meets the eligibility criteria, the loan gets approved. However, there can be delays due to:

• Failure of the applicant to submit all the relevant documents asked for

• Low credit score or pending dues can also affect the disbursement process

• Additional checks if there are recent changes in employment or income or for some other reasons

You can verify how much time it takes to disburse home loan from your bank official also. 

What are the Different Home Loan Disbursement Stages?

To understand how long does it take for bank to disburse home loan, you must be aware of the entire process and it is as follows:

The applicant applies for a home loan

• All the documents submitted by the applicant are verified

• If everything goes well, the home loan will be sanctioned

• The applicant makes the down payment next

• The loan is disbursed in one go or in installments

So this is the entire loan approval to disbursement process.

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What is the Home loan disbursement process?

To understand how much time it takes to disburse home loan we should first learn the meaning of disburse loan.  The release of credit amount that is provided by the bank or any financial institution is called home loan disbursement. The disbursement of the home loan occurs after the lender sanctions the home loans. Generally after the legal formalities are over including document submission and down payments the home loan disbursement is executed. There are different stages of home disbursement process which are:

• Documents submission
• Verification of the document
• Verification of the property.
• Loan disbursement.

Documents required for home loan disbursement:

• Identity Proof: PAN Card, Aadhar Card, Passport, Driving License, etc.
• Address Proof: Aadhar card, Passport, Driving License, Utility bills, etc.
• Date of birth proof: Birth Certificate, 10th Certificate, Aadhar card, Driving License. PAN Card.
• Income Proof: ITR's, Bank Statements, salary slips.
• Business Proof: Balance sheet, Business License, statement of profit and loss.
• Documents of mortgaged property: building plan approved copy and NOC obtained from society or builder.

Under Construction Property Home Loan Disbursement Procedure:

• You can avail a portion of the loan when the builder wants payment.
• At times lenders charge EMI on the amount disbursed. The EMI becomes a little bit lower in this process.
• If the amount of loan you are taking is small your amount will get sanctioned.
• You cannot get any tax exemption on under construction property.
• You can get tax benefits if you pay 5 EMI at the time of construction.

There is no fixed timing for home loan disbursement. It usually takes 7 days to 4 weeks, that is 1 month for home loan disbursement. I hope you now know how much time it takes to disburse home loan. Get home loans at the lowest rate of 6.5% from NoBroker. Read more: How To Repay HDFC Home Loan Online? How To Reduce Sbi Home Loan Tenure? Multiple Loans In ICICI Bank Home Loan NO DUES Certificate Want to take Home Loan? Check out whether you are eligible or not via NoBroker Home Loan Eligibility Form [widget_homeLoan_checkEligibility_form]