Are you looking for a simple and effective way to apply for a home loan at low interest rate? If Yes, then this is an appropriate platform where we will be discussing the best practices for hassle-free loan processing.
Buying/ Building a house is one of the biggest investments. It's a significant investment that involves both your money and your emotions. A home loan is like a helping hand that makes it possible for you to own a home. But getting a home loan isn't as simple as it may seem. Even a small mistake in the application process can slow down or even stop your loan from being approved.
In Nepal different banks come up with exciting offers for home loan ranging from attractive interest rate, loan tenure, processing fees, etc. and one must choose the best option as per the affordability and convenience. To make a right choice when it comes to taking a home loan, it is important to understand how home loans work in Nepal. This blog serves as your trusty, step-by-step guide to embarking on your Home Loan journey, ensuring a swift and gratifying experience. While there are some slight differences between banks, the process outlined here will be tentatively most of them. Knowing these steps will help make your home loan application easy and stress-free.
Obtaining a home loan always begins with completing a loan application with all necessary information. Banks have their own loan application format which is available both offline and online. The application form requires you to fill all your personal details for example: full name, address, monthly/annually income, educational information, occupation details, property details, the estimated cost of the property, etc. Further you are also asked for the tentative loan required amount in the form.
After you have filled the application form, you also need to provide supportive documents to substantiate your details like citizenship certificate, address verification, etc. along with the property documents that you intend to mortgage with the bank. Basically documents required by the bank for assessment can be divided into following categories.
Documents and details provided by the customer are then put forward for a verification process by a bank’s representative. Personal details including address, employment details verification, income verification and assessment as well as property validation is done prior to moving forward with the credit proposal. Any document or information provided by the customer in due course of assessment is found to be fake is immediately rejected by the bank and he/she may be enlisted in the bank's watch list. Therefore it is important that you provide valid and correct information and documents for processing your home loan in Nepal.
Once all the necessary documents are verified, the bank will assess your creditworthiness by examining your Credit Information Bureau (CIB) report and a blacklist report. This assessment may involve checking whether you have borrowed from other banks and reviewing your history of loan repayments.
After verification done from bank side valuation of property by independent valuators enlisted by banks is to be carried out. Valuator will ask for the property related documents like title deed, blueprint, charkilla, trace, naksha pass, etc. On the basis of the current market rate and on the government rate fair market value of the property is determined. Fair Market Value(FMV) is crucial for determining the loan amount that the bank can lend to its borrowers.
This process depends upon your eligibility check, document verification, Debt Burden Ratio (DBR)-depending upon your income assessment, Loan-to-value (LTV)- determined by FMV of the property and the bank's credit policy. The bank decides whether or not to accept your home loan application, and the same will be communicated to you.
If your application is approved, the bank will provide you with a loan sanction letter that outlines the terms and conditions of the loan, including interest rate, loan amount, and repayment schedule.
After all the paperwork is cleared, you will have to sign a loan agreement and other relevant documents with the bank. Ensure you understand all the terms and conditions before singing it.
Finally the signed documents along with legal documents are reviewed and vetted by the legal department of the bank. Thus, providing a green signal for loan disbursal. Then the bank will disburse an approved loan amount into your account as per the mutually agreed terms and conditions and upon payments of applicable fees and charges.
Saral Banking Sewa enables you to compare and choose the suitable home loan with the competitive interest rate. Also, we provide you details of all the banks offers on home loan and helps you to connect with banks for quick and easy loan processing.
Further, our team actively seeks ways to ‘saralify’ your banking experience. If you require assistance from us, throughout your banking processes, we’re always here for you.
Telephone No.: 01-5269107
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