Home loan sanction
A lender's approval of a loan amount for a buyer, based on income, credit and the property. Sanction comes before any disbursement.
Also called: sanction letter
A sanction letter states the approved loan amount, tenure, interest rate and conditions. For under-construction property, the lender also checks the project: RERA registration, approvals, title and often whether the project is pre-approved by that bank.
The RBI sets maximum loan-to-value ratios for individual housing loans: up to 90% for loans up to ₹30 lakh, 80% for loans above ₹30 lakh up to ₹75 lakh, and 75% above ₹75 lakh. The buyer funds the rest, plus stamp duty and registration in most cases.
Sales teams should track loan status on every booking. A buyer whose loan is stuck will miss the next demand. Knowing early lets you help with documents or suggest another lender.