7 Steps to Get Started Your Home Loan Application Process in India

Buying a home is one of the biggest dreams for most of us. But with rising property prices, it's not always possible to pay the full amount upfront. That’s where a home loan in India becomes a helpful option. It allows you to spread the cost over several years while moving into your dream house today. In this guide, we’ll walk you through the entire home loan application process in India, step by step.
 

Whether you're applying for the first time or just looking for clarity, this blog will help you understand what’s needed, how to qualify, and how to get started on your home loan application.
 

So, if you’ve ever wondered how to apply for a home loan or what documents are required, you’re in the right place.

Step 1: Check Your Home Loan Eligibility

Before you apply, the first thing to do is check if you qualify for a home loan. Banks and financial institutions look at a few basic things:
 

• Your age (usually between 21 and 60)
• Your income and job stability
• Your existing EMIs or loans
• Your CIBIL score for a home loan, which shows how well you've repaid loans in the past
   

Concerned about home loan eligibility? You can use an online home loan eligibility calculator. It’s a simple tool that asks you to enter your income, expenses, and loan amount to determine your eligibility.

 

Remember, a good CIBIL score for home loan (usually 750 and above) increases your chances of getting approved with better interest rates. So, if your score is low, it’s worth improving it before applying.

 

Checking your home loan eligibility takes just a few minutes and saves you time and effort later in the process.

Step 2: Choose the Right Type of Home Loan 

Not all home loans are the same. Before you proceed, make sure you pick the one that matches your needs.

At Ujjivan SFB, for example, you can apply for:

• A home loan to buy a ready-to-move-in property
• A construction loan if you’re building your house on a plot
• A home improvement loan for renovations or repairs
• A home equity loan is if you want to use the value of your property to raise funds
  
   

Understanding the different types of home loans in India helps you avoid confusion later. For instance, if you want to buy a plot and construct later, go for a composite loan.

 

Also, look for options that offer competitive home loan interest rates in India based on your profile and property type. Some banks even provide flexible EMIs and top-up loans if you're already an existing borrower.

Step 3: Documents Required for a Home Loan Application

Once you know which loan you need, the next step is gathering your paperwork. Having your documents ready in advance makes the home loan application process much faster and stress-free.

Here are the common documents required for home loan applications:
 

• ID Proof – Aadhaar Card, PAN Card, Passport, etc.
• Address Proof – Electricity bill, rent agreement, Voter ID, etc.
• Income Proof
  
         ◦ Salaried: Salary slips (last 3 months), bank statements, Form 16
         ◦ Self-employed: ITRs, business proof, income statements
• Property Documents – Sale agreement, allotment letter, property tax receipts, NOC from builder/society
• Photographs – Passport-size photos for all applicants
  
   

Each bank may have slight variations, but these are standard. Make sure all your documents are updated, signed where required, and neatly arranged. Missing paperwork can delay the process or lead to rejection.

If you’re looking to apply for Ujjivan SFB Home Loan and are unsure of the documents required, please reach out to us via our toll-free number 1800 208 2121. Our support team will help you understand the process better.

Step 4: Apply Online or Visit Your Nearest Branch 
 

Now that you’ve selected the loan and organized your documents, it’s time to apply. Most banks, including Ujjivan SFB, allow you to apply in two ways:
 

• Online: Visit the official website, go to home loans,  click on Apply Now, fill out the form and submit. Our representatives will contact you to assist further.
   
• Offline: Walk into your nearest Ujjivan Small Finance Bank branch and apply in person
  
   

Online application forms are user-friendly and usually ask for basic details like name, income, loan amount, and property type. Once submitted, a representative will reach out to guide you further.

 

Whether online or offline, how to apply for a home loan isn’t a complicated process anymore. Choose the method you’re most comfortable with, and make sure you follow up with the bank after applying.

Step 5: Wait for Loan Processing and Sanction
 

Once you apply, the bank begins its internal checks. This stage may take a few days depending on the Bank and the complexity of your profile. But don’t worry — here’s what happens behind the scenes:

• The bank verifies your documents
• It checks your CIBIL score for home loan again
• It sends someone to verify your employment and income (sometimes over a call)
• Then, it evaluates the property you're buying
  
   

If everything looks good, you’ll receive a home loan sanction letter. This letter mentions the approved amount, interest rate, EMI, and repayment tenure. It’s a sign that your loan is almost ready to go.

 

A strong CIBIL score for home loan helps you get sanctioned quickly and may even qualify you for a lower home loan interest rate.

 

The home loan sanction process is fairly straightforward, especially if all your documents are in order and your credit profile is stable.

Step 6: Signing the Agreement and Confirming the Terms
 

After your loan is sanctioned, you’ll be asked to sign the home loan agreement. This is a legal document that finalizes the terms between you and the bank.
 

Here’s what it usually includes:

• Loan amount and tenure
• EMI schedule and repayment method
• Applicable home loan interest rate (fixed or floating)
• Processing fee details
• Rules around prepayment, late fees, or foreclosure
  
   

Take your time to read through it. Ask questions if something feels unclear. Once signed, this agreement becomes binding.

 

Signing the agreement officially makes you a borrower. The next step is getting your money and moving into your home!

 

Step 7: Disbursal of Your Home Loan and Start of Repayment

Once everything is signed, your loan is ready for disbursal. This means the bank will now release the money.

 

Depending on your property type, the amount is:

• Paid in full if the house is ready-to-move
• Released in parts (tranches) if it’s under construction
  
   

Most banks transfer the loan amount directly to the seller or builder—not to you.


From here, your home loan EMI schedule begins. Every month, the EMI will be auto-debited from your account until the loan is paid off.

 

Want to know how much your monthly payment will be? Use a home loan EMI calculator—a simple online tool where you enter your loan amount, tenure, and interest rate. Ujjivan Small Finance Bank provides one on their website to help you plan better.

 

The home loan disbursal is the final step, but the journey really begins with responsible repayment.

Bonus Tips for First-Time Home Loan Applicants
 

Here are a few simple but useful tips to make your experience smoother:

• Check your CIBIL score and clear any unpaid dues before applying
• Prepare all documents required for home loan in advance to avoid delays
• Compare home loan interest rates in India before choosing a Bank
• If eligible, apply under PMAY subsidy to save on interest
• Go with banks like Ujjivan that offer flexible repayment and easy top-up options
• Always read the fine print in your home loan agreement
  
   

These tips apply whether you’re buying a first home, building one, or renovating your current one with a home improvement loan.