How Much Time It Takes to Disburse Home Loan?

Disbursement refers to the stage when the lender (here HDFC) actually pays out the loan amount. This could be the whole sum (for ready-to-move/resale properties), or in stages/instalments (for under-construction properties), depending on the construction progress and what was agreed in the loan contract. Recently, I came across this query: how much time it takes to disburse home loan? After a bit of research, I found it takes 1 to 4 weeks, on average.

When does HDFC Disburse Home Loan?

HDFC will only disburse the home loan once several conditions are satisfied:

1. The technical appraisal of the property must be complete. This means the bank has evaluated the physical status, construction progress, etc.

2. All legal documentation must be in place. This includes ownership proof, title search, seller/developer approvals, registration, etc.

3. Your own contribution (down payment or margin money) has to be paid in full. Until you make that contribution, the lender cannot disburse.

The exact time can vary depending on how quickly you complete the above formalities (document submission, approvals, contributions). After loan sanctioning and completing documentation, HDFC may disburse within 7-10 business days in many cases.

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. 

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.

Read More:

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

• 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.