Financing in India

by Ratikanta
(Indore, Madhyapradesh, India.)

During mid 2009 I was planning to buy my own home. Till then I was staying at rented apartments and every couple of years was going through the rigorous activities of shifting residences. I was working, as a Manager in a Healthcare company and hence getting a home loan was not going to be a daunting task. But since my native place was some 1000 miles away from my work place, there were usual hassles of convincing families and relatives. Our family belong to that section of society where settling at such a long distance from native place was unheard of. However I could convince my parents that though I am buying a home but will definitely return to my native place a and when they wish and feel it mandatory. The next task was to find a suitable apartment. As every year we have to visit our native place for more than two weeks, our obvious choice was to own an apartment than a row house or bungalow. Because apartments are considered to be safe and secure with adequate security round the clock. As we found out this task was not so easy for my spouse is a trained Vastu Expert and she was looking for a place, which should at least adhere to the basic fundamentals of vastu design and principles. At last we could find such an apartment that was some 200 yards from the place we were staying. After finalizing regarding the pricing of the place with the real estate owner, I had to search for a financing institution to get the home loan. As my Salary account was with HDFC Bank and the interest rate offered by them was affordable, hence we finalized to borrow the funds from this institution. The bankers asked for the formal documents like, Salary Slips, Bank Account statements, Tax returns, Identity details as per their requirement, which I provided promptly. Again the bankers asked for documents related to the proposed apartment to be financed. I have to again visit the real estate owner to obtain these documents. After submission of all these documents, the bankers asked for the margin money and in my case the margin money was 25% of the total cost of the property. Finally after nearly two weeks of submission of the formalities, I received a call from my banker that my home loan since has been sanctioned and the disbursement cheque is ready. So after finding an auspicious day (being religious in nature) I collected the disbursement and handed over the same to the property owner and took the delivery of the keys to my own apartment in December 2010. This is my story of how I availed the home loan for buying my home. Hope you will find it interesting.