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Home Loans Made Easy: Navigating Sanction and Disbursement Process

By IIFL Home Loans | Published On Jun 02 2023 7:21 AM 1 min read 656 views 998 Likes

Picture this: You have wanted to buy a home of your own ever since you can remember. You have finally made the decision to buy one. You went apartment hunting and found a place you would like to call home for the rest of your life. Now comes the part where you worry about gathering finances for the home.

An easy solution? Apply for a home loan. It may be a long-term commitment, but it is one of the most affordable ways to own a home. The entire loan process might be daunting. The home loan process is broadly divided into 3 parts: application, sanctioning, and disbursal. We are here to help you understand the process of home loan after application: the process of home loan sanctioning and disbursement.

What is Home Loan Sanctioning?


Home loan sanctioning is the process by which a financial institution assesses your eligibility and approves the requested loan amount for purchasing a home or property. During the sanctioning process, the lender evaluates various factors, like your income, creditworthiness, employment stability, property valuation, and loan-to-value ratio. The home loan sanction limit can be anywhere between 10% and 90% of the value of the property.

The home loan sanction time is usually 3-4 weeks but it may differ for different lenders. When a home loan is sanctioned, the lender gives you a home loan sanction letter. The letter contains details about sanctioned loan amount, tenure, repayment method, interest rate, type of interest rate: fixed or floating, tax exemption, terms and conditions, and a “valid until” date. The home loan sanction letter validity is usually 6 months from the date of issue.

Step-by-Step Home Loan Sanction Process

  • Step 1: You put in the application for a home loan

  • Step 2: Next you have to submit all the paperwork the lender asks for

  • Step 3: The lender then verifies all your documents and conducts a thorough background check on you as well as on your property

  • Step 4: An expert is appointed by the lender to value your property which helps decide the final amount of the loan

  • Step 5: If all goes well so far, the lender will put forward a loan offer stating all the specifics of the loan such as the amount, interest rate, tenure, etc.

  • Step 6: There may be some discussion and negotiation between you and the lender and then, after you approve of the conditions, the lender officially sanctions the loan and sends you the sanction letter.

After the home loan has been sanctioned, the home loan disbursement process happens next.

What is Home Loan Disbursement?

Home loan disbursement, on the other hand, is the process wherein the lender transfers the approved loan amount to you. Once the home loan is sanctioned and all the necessary documentation and formalities are completed, the lender disburses the loan amount as per the agreed terms and conditions.

Once you receive the home loan sanction letter from the lender, the disbursal process can usually commence as early as 24 hours after sanction. The disbursement amount may be transferred in one or multiple installments, depending on the agreement between you and the lender.

Step-by-Step Home Loan Amount Disbursement Process

  • Step 1: The home loan disbursement process starts when you send the lender an amount disbursement request.

  • Step 2: The lender may conduct a final inspection to ensure that everything is as per the agreed terms.

  • Step 3: You and the lender can then discuss and then sign the loan agreement.

  • Step 4: Now comes the actual disbursal of the loan. The lender may transfer the amount directly to the builder at each new stage of the construction process. Each disbursement is called a 'part payment' and the payments are said to be made in 'home loan disbursement stages'. In some cases, the lender may even transfer the entire sum sanctioned to you in one go.

  • Step 5: After the disbursement, the loan agreement and property documents are registered with the appropriate authorities

  • Step 6: And now you are free to enjoy being a homeowner!

In case of any hitch or confusion at any stage of the process, the lending institution has a team to help you in every way possible.



A home loan is a safe and affordable way to own the home of your dreams. The process may seem unnerving at first glance but it mainly has only 3 parts: application, sanction and disbursement. For any help needed at any stage of the process, you can easily contact your lender and work out a solution.

Here at IIFL Home Loans, we aim to make your home loan process as seamless as possible. With a completely online application process and quick approval, getting a home loan from IIFL Home Loans has never been easier. Our team of experts is eager to help you through your home loan journey so you can enjoy being a homeowner, worry-free!

What are you waiting for? Claim the home of your dreams with IIFL Home Loans. Check your home loan eligibility and avail of our quick and easy home loan now!


  1. 1. What is home loan sanctioning?

Home loan sanctioning is the part of the home loan process where the lender assesses and verifies your documents and then approves the loan amount after discussing it with you.

  1. 2. What is disbursement of home loan?

Disbursement of home loan is the stage of the process where the lender transfers the sanctioned amount to your account or directly to the builder.

  1. 3. How long does home loan sanctioning and disbursement take?

The sanctioning and disbursement process can usually take anywhere between 1-4 weeks without any obstacles in the process. Disbursement of the home loan amount can happen as early as 24 hours after sanctioning of the home loan.

  1. 4. How do I apply for a home loan?

After doing some research and choosing a financial lender, you can visit the lender's website to fill an online application form for a home loan. Alternatively, you can visit a physical branch and get a physical copy of the form, fill it, then submit it. To avail of a quick and easy home loan from IIFL Home Loans, all you have to do is apply online through our website.

  1. 5. What is a home loan sanction limit?

A home loan sanction limit means the proportion of the value of the property that the bank or financial institution can approve or sanction to you. In a general sense, most lenders can sanction anywhere between 10% to 90% of the value of the property. The remainder has to be arranged and paid by you as down payment.


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