Being one of the oldest players in the housing loan market, DHFL (Dewan Housing Finance Limited) has been providing affordable and competitive housing loans for decades now. With a pan-India presence, this HFC (Housing Finance Company) has offices in various towns and cities in the country. It offers a plethora of products for individuals in the retail housing segment as below.
Since housing loan involves a high quantum of money, the paperwork and processing can be sophisticated and time consuming. At DHFL, the processing of the loan application is done in various phases and it's important to know the nitty gritties to ensure there are no slips from your end. The first step in this process would involve filing the application form (available online and at branches) and submitting it along with a cheque as fee towards initial processing.
Following are the various steps involved in the approval process.
During the first phase, DHFL representatives will determine the repayment capacity after taking into account, income and accuracy of the information furnished in the application form. In the backdrop of the details provided, the credit team will determine the amount you’ll be eligible for.
After ascertaining the loan amount, the representatives will now carry out a thorough credit check to scrutinize the credit history to assess the creditworthiness of the applicant. This is a critical phase since it can make or break the prospects for applicant. It's advised that you retrieve a copy of credit report before applying for a loan with a view to resolve disputes or wrong entries in the report which may go against your application.
If everything goes well in the step above, DHFL will make arrangements for conditional sanction of the loan. Considering the various sub-processes involved, it may take a few days to make a decision on the loan application.
In this phase, DHFL will issue a formal letter offering a loan amount as discussed and agreed upon. This letter will also serve as an acceptance of the loan application and should be signed by all the applicant(s) after reading the terms and conditions. The applicant is also required to verify the authenticity of information furnished in the letter and get discrepancies (if any) corrected.
Towards the end of this step, the representatives at DHFL will advise you further on additional paperwork and the way forward.
This step consists of two sub-processes to be conducted simultaneously.
The Technical Assessment will be done by a qualified surveyor who will examine the property to be provided as security. After completing the assessment, a detailed report will be submitted to DHFL for further scrutiny.
The Legal Assessment process deals with examination of the property documents from a legal point of view. Agreements, Titles and other papers will be closely examined to determine if the property can be mortgaged for lending. Depending on the market value of the property, the terms and conditions may be slightly altered.
After acceptance of the offer and completion of all checks including the ones mentioned in the step above, the applicant is required to submit a cheque as payment of final processing fees. Once the cheque is cleared, a loan disbursement cheque will be issued at the designated branch/office.
The first loan repayment will begin a month after the disbursement date.
As a well informed and educated borrower, it's paramount to be pro-active during the application process and follow the laid down procedure. Be sure to communicate through appropriate channels during various stages of processing with the representatives. Delay in supplying paperwork will result in prolongation of the approval process.