How long does it take for a home loan to be sanctioned after applying? What are the factors that might delay the home loan sanction?
Pankaj Gadgil, MD & CEO, Aditya Birla Housing Finance said the sanction time for a home loan varies depending on several factors. On average, it takes 1 to 2 weeks for a home loan to be sanctioned. Salaried applicants with complete documentation may receive financial sanction approval in as little as one week based on their income and eligibility. Depending on property evaluation and title search, the final sanction might take another week.
However, several factors can cause delays in the sanctioning process:
• Incomplete Documents: Missing or incorrect information in the application can significantly slow down processing.
• Self-Employed Applicants: Verifying income for self-employed individuals takes longer than that of salaried applicants.
• Property Verification: The Financial Institutions must verify the purchased property, which can also take time.
• Loan Amount and Type: Larger or specific loan types might require additional scrutiny, leading to a longer wait.
• Title Issues: Disputes or encumbrances on the property title can cause delays in title search and legal verification.
• Seller Delays: The seller may need to provide additional documentation to clear title issues, which might further delay the process.
• Internal Policies: Each lender has its own internal policies and processes for loan sanctioning, which can vary and affect the timeline.
To avoid delays in sanctioning, it is important to ensure all required documents are submitted accurately and promptly. Working closely with the lender and providing any additional information they require can help expedite the process. Additionally, choosing a property with clear titles and legal compliance can streamline the loan sanctioning process.