The best part is when you finally receive the cheque. This happens once it has been determined that the property is legally clear, and you have handed over all the documents pertaining to the transfer of ownership. At this stage it is also important to provide proof of the amount paid by you as your contribution towards the property cost.
The cheque will be made in the name of the reseller, or builder, society or development authority. Unless specific proof is provided, only in exceptional circumstances, will a cheque be handed over directly to you.
Usually, loans are disbursed on the progress of construction of the property. This means that the disbursement can be full (in case of a resale flat) or part (in case of new construction or self constructed). Each option would have different disbursement processes.
When a loan is part disbursed, the EMI does not start immediately. It is usually started as a Pre-EMI. This is just a simple interest on the amount disbursed. This process continues till the full amount is disbursed. You should, at this stage, ensure that all the Pre-EMI cheques (PEMI) are honored as and when they are presented..
In case of a resale property, or a ready for possession property, the entire amount is disbursed in favor of the builder or the seller. Keep photocopies of all documents that are passed between your builder and lender.
After disbursement is done, you are expected to hand over all the original documents to us, post transfer of the documents is done. You should also hand over the receipt of the payment. This becomes part of the loan documentation in your file.
In case your property is part of a housing society, you need to ask the society to transfer the flat in your name, and issue you the share certificate in your name, and record the transfer of ownership in their books.
This transferred share certificate also becomes part of the loan documentation, and thus needs to be handed over to be filed with us.
How to Repay
Typically, you will be asked for Post Dated Cheques (PDCs) for a period of 12, 24 or 36 months depending on the amount of the loan sanctioned and the scheme.
In case your installments are to be deducted directly from your salary, you need a letter from your employer confirming this arrangement, and remitting the amount directly to us.
Your bank may also give you the facility to remit the amount directly from your salary account to your loan account.
And yes, you can also deposit the EMI with a demand draft or cash.
You can make payments at any of our branches.