What is Possession taken Date in home loan?

I applied for a home loan in 2022 for a house in Gurgaon. At the time, I had to share details regarding the possession date in home loan. 

The possession date basically means the exact date on which you’re going to get possession of your home. A possession certificate is a legal document I had to show to the bank, as I had yet to receive the possession at the time of the loan application. I’ll share more details about the possession taken to date and the certificate with you below.

What is Possession Date in Home Loan?

Continuing from above, the possession certificate is an important document which works as proof that the interest in the property has been legally transferred by the seller to the buyer. This builds trust in the financial institution from whom you’re taking home loans to believe that the property being talked about is true. 

However, as Shiv said in his answer, the lending NBFC or bank will run their checks to ensure that the property is indeed going to be yours. This helps them to ensure no fraud takes place while issuing home loans. 

I would also like to add that you would need an occupancy certificate to certify that you are the legal owner of the property.

This is all I have to share with you. I hope this helps.

After a long time I was able to get my dream property but the cost was quite high. I wanted to avail a home loan for it and that is when I was asked about the possession date. I had no clue why the date of possession in home loan is needed. I asked the bank official and then learned about it. The concept is simple and important so get a vivid idea about it here.

Before answering what is possession taken date in home loan, let me explain what is meant by date of possession. The date of possession is the date when you will be given or handed over your property. For example, in my case, I was told that I will get possession of the property on 6th September 2018. So 6th September 2018 was my date of possession.

If you want to avail of a home loan against a property that you are yet to get possession of, you will have to submit the lender a possession letter or certificate. This is done to make sure that the loan you are applying for a property is true. It also means that the property is legit. However, the bank will still verify all the details of the property against which you are applying for a home loan and sanction it once everything seems to be in order.

I hope the concept of what is date of possession in home loan is all clear to you now.