Can I use home loan disbursement for purposes other than home renovation?

Yes. With Tata Capital, you can take a home loan for varying purposes, including: Buying a ready-to-move-in houseBuying an under-construction propertyBuying a plot and constructing a house on itRenovating your existing houseAdding new spaces to your houseRemodeling your house

What are the tax implications of availing of a home loan disbursement?

When you take a home loan disbursement, you become eligible for the following tax benefits: Tax deduction of up to Rs. 1.5 lakh in a financial year for repaying the principal component of a home loan. This deduction can be claimed under section 80C of the Income Tax Act 1961Tax deduction of up to Rs. 2 lakh in a financial year for repaying the interest component of a home loan. This deduction is available under section 24B of the Income Tax ActIf a home loan is taken jointly, both co-borrowers become eligible for tax benefits

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Subsequent Disbursal

Home Loan Subsequent Disbursal

About Subsequent Disbursal

If you’ve taken a home loan to buy a fully constructed housing property or a ready-to-move-in house, your house loan amount would be disbursed in full. However, if you’ve taken a housing loan for an under-construction property, your home loan amount would be disbursed in tranches, adhering to the stages of construction of the building. This process is known as subsequent disbursal or tranche disbursal of home loans.

The request for subsequent disbursement of housing finance can be made by a builder who is providing a Construction Linked Payment (CLP) facility for its under-construction properties. Under this facility, the payment for the property has to be made to the builder in tranches or installments upon reaching certain stages of construction of the building. These stages of construction are pre-agreed between the builder and the buyer.

If you’re planning to buy a property with the CLP facility, you can avail of a home loan with subsequent disbursal from Tata Capital. Your home loan EMIs will be calculated only on the disbursed home loan amount.

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Eligibility

Home loans with subsequent disbursals are only available for customers who have booked under-construction properties with the CLP facility. Subsequent disbursement requests can only be made by the builders offering this facility, and the disbursals will be done directly into the builders’ bank accounts.

Tata Capital will verify the stage of construction, payment of customer’s contribution (if any), the overdue status of the loan account, etc., before making home loan subsequent disbursals into the builder’s account. Tata Capital reserves the right to reduce the disbursement amount or reject the disbursement request from the builder on account of non-fulfillment or non-adherence to home loan subsequent disbursement guidelines.

How to Apply

You can visit your nearest Tata Capital branch to place a request for subsequent disbursal of your home loan. You can also request for home loan subsequent disbursal online by following a few simple steps mentioned below:

Log into your account on the Tata Capital website.

Click on the “Customer Services” tab and select the “Subsequent Request” option.

Click on the “Raise New Request” button.

Select your home loan account number and then click on the “Subsequent Disbursement” tab.

Fill in the home loan subsequent disbursal form and upload the required documents.

Go through the terms and conditions and click on the “I Agree” option and enter the OTP received on your registered mobile number to submit your request.

A Service Request Number (SR) will be generated for your house loan subsequent disbursement request. Note down this SR number for future reference.

Home Loan Disbursement Stages

Home loan disbursement process used to be a complex and time-taking one before digitization. But nowadays, with financial institutions offering online facilities, you can get a home loan within a few working days. Below are the six housing loan disbursement stages that you need to go through to avail of a home loan with a lender:

Applying for the Loan

The first step in the process of taking a home loan is applying for it. You need to first research various home loan providers in India and then choose the best one among them to apply for a home loan. Then, you will need to fill out a home loan application form by mentioning details such as your name, address, monthly income, employment status, existing liabilities, and so on. This can be done online by visiting a lender’s website or offline by walking into its nearest branch.

Submission of the Required Documents

After receiving your home loan application form, the lender will ask you to submit the required home loan documents. These may include your age proof, photo identity proof, address proof, income proof, and the documents of the property you are planning to purchase. Based on these documents, the lender may decide whether or not to approve your home loan disbursement. Thus, make sure that you don’t miss out on anything and that the documents you are submitting are accurate.

Payment of the Processing Fee

After submitting your home loan application form and the required documents, you may have to pay a processing fee to the lender. This is usually a one-time non-refundable fee levied by lenders to cover the administrative expenses incurred during the processing of loan applications. The processing fee may vary from one lending institution to another and may range between 1% and 3% of the total loan amount.

Verification of Your Home Loan Application

Upon receiving the home loan processing fee, your lender will start a verification process to check the authenticity of the information provided by you in your home loan application form. This is done by appointing a verification officer who inspects the form and the documents that you have submitted. They may also visit your residential address if required. The process also involves the scrutiny of your credit score and credit reports obtained from various agencies.

Approval of Your Home Loan

Upon successful verification of your home loan application form and documents, the lender will provide approval for your home loan via a sanction letter. This letter will contain the details of the approved home loan amount, applicable rate of interest, the type of interest rate, other fees and charges, repayment tenure, and your mode of repayment, among others. If you are happy with the terms mentioned in the sanction letter, you can seek housing loan disbursement from your lender.

Disbursal of Home Loan

This is the last and final step of a home loan disbursement process. In this step, the lender will ask you to submit original copies of your property’s title deed, encumbrance certificate, and other required documents to disburse your home loan amount. Upon receiving these documents, the lender will disburse the loan amount to your bank account or directly to the builder.

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What our customers say about us

Service provided by Manoj Patel in Surat vesu Branch was helpful and because of his support we were able to close loan.

Prakash Patil

Home Loan | 23 Aug, 2024

Excellent A1 Services. The Lady at the Customer Desk is very Cooperative and helpful so that my work completed without the time frame. The name of the Lady is Amruta Pathak. God bless her and her family. Thanks and Regards for the entire team of Tata Capital.

Nandlal Lal Arora

Home Loan | 13 Aug, 2024

Very good & prompt service, and we have spoken to Mr. Manish also, and he always helps us to provide our request. Thank you, Ms Apurva Shende & Manish Padwal

Farhang Ahmed Azar

Home Loan | 24 Jul, 2024

I'm happy with the service and the help I got earlier for foreclosure letter. Thank you so much & thanks to Alisha mam for her guidance.

Akshay Anil Pawar

Home Loan | 17 Jul, 2024

Special thanks to Mr. Avinash for his help rendered with full commitment to his job, answering the queries to me clearly, and follow up so that the work is done in given time to get customer satisfaction.

Hannah Grace

Home Loan | 02 Jul, 2024

Mr Avinash who handled my case is well experienced and has courtesy for customers' concerns. However, some of the Tata Capital products are very expensive when compared to other banks' ones!

Mohammed Shakeel Urrahman

Home Loan | 28 Jun, 2024

Start to end of my loan process was simple and guidance of your team members were to the point. My last communication was with Mr. MANOJ PATEL from surat branch he was very polite and helpful.

Anamika Vijaykumar Tiwari

Home Loan | 20 Jun, 2024

We extend our heartfelt gratitude to Mr. Pravin Sagare, Senior Officer of Customer Service, for his exceptional service. His remarkable demeanor and professionalism during telephonic interactions with customers have been truly outstanding. Over the past two years, we have utilized various services, yet none have matched the quality provided by Mr. Sagare. We are deeply impressed by the exemplary service, due to this reaons we has influenced our decision to obtain a second home loan from TATA Capital Housing Finance Limited.

Avinash Vasantbhai Bhesaniya

Home Loan | 07 Jun, 2024

I had applied for a home loan at Tata Capital & got the it approved quickly. The process was smooth and sanctioned with sufficient amount with tenure period of 20 yrs.

Sumeet Verma

Home Loan | 14 Mar, 2022

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Popular FAQs

Six steps or stages are involved in a housing loan disbursement process. These include applying for a home loan, submitting the required documents, paying a home loan processing fee, verification of your home loan application, approval of your home loan, and finally, the disbursal of your home loan. You need to go through all these stages to receive the disbursal of your home loan amount.

The lenders consider various factors to determine your housing loan disbursement amount. These factors include your age, monthly income, credit score, existing financial liabilities, and the cost of the property you are planning to buy. Based on the analysis of these factors, the lender decides your home loan amount.

Yes. A lender determines the maximum home loan amount that can be disbursed based on your age, monthly income, credit score, existing financial liabilities, and the cost of the property you are planning to buy. Usually, lenders provide home loans of up to 80% of a property’s market value.

The interest rate for a home loan is decided based on your age, monthly income, credit score, and the property you are buying. A home loan interest rate may vary from one lender to another, and it usually ranges between 10% and 13% in India. With Tata Capital, you can get housing loan disbursement at a highly competitive nterest rate, starting from just 7.99%* per annum.

The repayment of a home loan is usually made in Equated Monthly Instalments (EMIs). The EMIs of a home loan depend on the loan amount, tenure, and the applicable rate of interest. The higher the tenure of a home loan is, the lower the EMIs will be. You can take the help of a home loan EMI calculator to know your home loan EMIs.

Yes. You can make the full or partial prepayments of your housing loan disbursement anytime during its tenure. Whether or not you will have to pay the charges for it depends on the lender. At Tata Capital, we levy zero prepayment charges if you use your own funds to make a prepayment of your home loan.

Home loan disbursement involves several stages, which may take time. It may take anywhere between 10 and 15 working days to get your home loan disbursal. However, if you want to get quick disbursement, you can apply for a pre-approved home loan with Tata Capital.

Yes. With Tata Capital, you can take a home loan for varying purposes, including:

Buying a ready-to-move-in house
Buying an under-construction property
Buying a plot and constructing a house on it
Renovating your existing house
Adding new spaces to your house
Remodeling your house

Yes. Home loans are provided for under construction properties as well as fully-constructed ready-to-move-in apartments. However, in the case of an under construction property, the home loan is disbursed in tranches based on the construction status of the project.

The repayment tenure for a home loan is determined based on your age, loan amount, and the construction status of the property you are buying. If you have taken a home loan for an under construction property, you will get the disbursement in tranches and can repay accordingly. At Tata Capital, you have the flexibility to choose your home loan tenure for up to 30 years.

When you take a home loan disbursement, you become eligible for the following tax benefits:

Tax deduction of up to Rs. 1.5 lakh in a financial year for repaying the principal component of a home loan. This deduction can be claimed under section 80C of the Income Tax Act 1961
Tax deduction of up to Rs. 2 lakh in a financial year for repaying the interest component of a home loan. This deduction is available under section 24B of the Income Tax Act
If a home loan is taken jointly, both co-borrowers become eligible for tax benefits

A home loan disbursement refers to the process of the transfer of the initial home loan amount. It can be taken for buying a new property, renovating an existing property, or constructing a house. On the other hand, a home loan top-up is the additional amount that is given to the borrower over and above their home loan amount. You can take a top-up home loan if your original home loan amount is insufficient to meet your housing financial requirements.

When you apply for a home loan with a lender, you are given a reference number or an application number. You can use these reference numbers to track the status of your home loan disbursement on a lender’s website. You can even log into your home loan account using a unique ID-Password combination to track your housing loan disbursement status.

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