How to proceed to get a home loan while purchasing a flat?

POSTED BY Sourabh Das ON April 18, 2014 11:38 am COMMENTS (10)


I am asking this question just to increase my knowledge and idea about home loan. Say, I have chosen to buy a 3 BHK flat in an apartment pricing 30 lac. Now, as do not have thithis much amount handy in cash i need to ask for loan options provided bu banks or other finance institutions. Now, say i got 10 lac out of this 30 lac in cash including my savings and my other parental money, now what will be the next procedure ?

How to approach the bank about my purchasing? I have seen on some newspaper advertisement, bank finance available , then does it mean the real estate company will take care of my loans? Please clarify.

And on the loan is sanctioned, will the bank pay the allotted loan amount to myself or to the real estate group? Will i give the upfront money that is 10 lac to the real estate group whom  am purchasing the flat from.

I know all these are very very basic questions, still if you can kindly provide me proper guidance i will be grateful. There are so many scam in the market, i get to know the basic idea from scratch.

Please post your authentic information.



10 replies on this article “How to proceed to get a home loan while purchasing a flat?”

  1. ashalanshu says:

    Dear Sourabh, loan EMI calculator is available in main JI site as well as on the PC from where you typed the above query. Just open a loan amortization template in your PC and punch in the required data to get your EMI figure.



  2. Sourabh Das says:

    Ok, thanks. If i pitch in 6 lac then the remaining 24 lac could be managed via home loan and in that case can you give me an idea about what would be EMI?

    Best Regards,


  3. ashalanshu says:

    Dear Sourabh, you need to pitchin minimum 6L Rs. as your own contribution for purchase this house @ 20-80 self -Loan ratio.



  4. Sourabh Das says:

    I can arrange a maxium of 5 lac cash

  5. ashalanshu says:

    Dear Sourabh, how much you ‘ll pitch in from own and how much loan to purchase the 30L house?



  6. Sourabh Das says:

    My present rental amount is Rs.6k per month and i f i rent out a 30L flat in this present market I would get at least 8k per month.

    Please give me idea keeping final price around 30 lac.


  7. ashalanshu says:

    Dear Sourabh, how much you are paying rent for your current residence and what ‘ll be the possible rental income for the house you intend to purchase, if you put the same on rent? What ‘ll be the final price to you for this 30L Rs. property?



  8. Sourabh Das says:

    Viren and Ashalanshu, thanks to both of you.

    Now, giving answer to the question asked by Ashalanshu, i have visited some places in my desired locality and figured that it would take approximate 30L to buy a flat as per my requirement. Now, I have not added any kind of tax, VAT , stamp duty, it is just an idea on the basis of per square feet rate.

    I am self employed business man married and with a child, earning about 4 lac per annum, save around 10k in a month , so expense is around 30k, and i I have not taken any loan so far, and stay in a rented flat in the city where i want to purchase a flat.

    I have no asset expect my house hold items and no liabilities either except my own start up IT firm.


  9. ashalanshu says:

    Dear Sourabh, may I know your thinking on house purchase? How did you reach to 30L figure? Is it all inclusive final figure or just the basic price of house and overheads are extra towards, service Tax, VAT, registrations, Stamp duty etc? What is your mly income? Mly expenses? No of dependents? Other loan liabilities? Current assets and investments?



  10. Viren Phansalkar says:

    Let me see if i can remember all the things:

    1. Fix a price at which you would buy
    2. Decide how much would you (rather can you) cough up (should be more than 20% plus stamp duty registration, VAT, parking charges,). Visit #1 again
    3. Look around and finalize the property. In parallel, visit all bank branches in and around and decide from which bank you would avail loan. If possible get pre-approval done.
    4. Try and negoitate with builder to arrive at your price
    5. Once you finalize, pay the initial 20% to builder and get receipt
    6. Builder will give you date for registration
    7. Get the agreement done
    8. Take NOC from builder for mortgaging the flat
    9. Along with registration doc and NOC, visit bank and avail loan
    10. Bank would keep the papers and would sanction the loan
    11. Bank would disburse the 80% amount check in the name of builder and would post it themselves
    12. On receipt for 80%, builder would give us the receipt and possession.

    Sorry, if any of the point is missed out.

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