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Part Disbursement FAQs

 What is Part Disbursement?

Loan sanctioned for under construction property is disbursed in instalments. These disbursements in instalment are called as Part / Subsequent disbursement.
You will need to make a request to the Bank for the part disbursement

 How do I take my next disbursement?

You will need to submit request for part disbursement to the Bank along with following documents.

  • Disbursal Request Form (DRF) filled and signed
  • Demand letter from the builder (in original)
  • Receipts of payments made to the builder/developer
 Where will I get the Disbursement Request Form?

The Disbursement Request Form has been sent to you along with your Welcome Kit. Alternately to download the form, please click here

 Where do I submit my part disbursement request to the Bank to make the disbursement?

You can submit the part disbursement requests using any of the following channel.

  • Contact our sales representative who has been liaising with you for your loan requirements
  • Visit any of the Loan Center (preferably from where you have taken loan) to submit your request along with the required documents
 How much time does the Bank require to make the part disbursement?

The time taken by the Bank depends on the category in which your property falls. The Bank categorises any property into APF (Approved Project Facility) and Non APF. The time taken for processing by the Bank would be:
5 days - If the property part of Approved Project Facility 7 days - if the property not part of Approved Project Facility
We would however like to advise you to submit the disbursement request form as soon as the demand is raised by the builder.

 How Do I know if my property is part of the Approved Project Facility

You can check the list of Approved Projects on Axis Bank website under Home Loan page. For any clarification or more details call our phone banking number or write to us on Loans@axisbank.com

 Do I need to pay any amount to the builder prior to requesting part disbursement from the Bank?

Your Loan is sanctioned for a particular Loan to Property Value ratio. (E.g 25 lac property value, 20 lac loan sanctioned, i.e. 80%, balance 5 lac will be paid from your side for the property) If you have paid the balance amount towards the property upfront then no further payment need to be made from your side to the builder. If you have not paid the balance amount upfront then you will be required to make payment to the builder at least as per above ratio.

 What if construction progress is not as per the plan shared by builder/developer?

If the construction progress (as verified by the Bank) is not as per original plan, the Bank may disburse amount lesser than requested amount, or may not disburse.
AXIS Bank retains the right to disbursement(s) of loan basis internal checks. Disbursement(s) is at the sole discretion of the Bank.

 What if the part disbursement is final instalment in the loan account?

In case the part disbursement requested is final instalment , you will have to either pay premium for insurance policy or provide insurance policy insuring the property against loss by fire, earthquake, floods and other damages with Axis Bank as the beneficiary. When the policy is availed from the bank, the premium amount will be deducted from the loan disbursement amount

 How will I get to know about the Disbursement made by the Bank?

The Bank will intimate you by SMS on your registered mobile number as per bank's record. Alternately, you can call up the phone banking number or write to us on Loans@axisbank.com

Approved Projects

In respect of approved projects, it shall not be binding upon the Bank to approve the loan proposals considering the fact that the property comes under the approved projects. It shall be the sole right of the Bank to consider the proposal on case to case basis after taking into consideration, the credentials/credit worthiness of each of the customers. Whether the Bank would approve the proposal or not shall also depend upon whether all the necessary clearances from all regulatory authorities and all other necessary documents as may be required by the Bank are in place. Under no circumstance, the Bank shall be held responsible for any disputes arising out of such projects both legally or otherwise. The Bank does not in any way accord priority to such projects over others. Customers are advised to verify the credentials of such projects/builders through their independent advocates and shall not rely only upon the affirmations of the Builder and/or the Bank and thereafter take a decision. The customers shall take note of the fact that only upon the Bank having satisfied itself about the merits of each case, the Bank will approve the loan proposal
Please click on the "Download now" button to agree with the terms and conditions mentioned above and to download the approved projects list.

Fair Practice Code for Lenders

As directed by the Reserve Bank of India, from time to time through its circulars, the Bank has adopted modified Fair Practice Code for Lenders as approved by the Board of Directors. The salient features of the same are:

Applications for Loan
In the loan application form, the Bank shall provide comprehensive information including information about fees and charges if any payable for processing and amount of such fees refundable in case of non acceptance of application, prepayment options and other matter which affects the interest of the borrowers, of all categories of loans, irrespective of the amount of loan sought by them.

Processing
  • The Bank shall provide acknowledgement for receipt of all loan applications indicating the time frame within which the application will be disposed of.
  • The Bank shall verify the loan application and if additional details / documents are required, these will be sought from the applicant.
  • For all categories of loans and irrespective of any threshold limits, the Bank will be expected to process the application without delay. In case the application is turned down, the Bank will convey in writing to the applicant the reasons for rejection within one month.

Loan Appraisal and Terms and Conditions
  • The sanctioning authority will be expected to ensure proper assessment of the credit application as per the extant instructions and credit policy of the bank. The availability of adequate margin and security will not be a substitute for due diligence on the creditworthiness of the customer.
  • All the terms and conditions and other caveats will be duly communicated by an authorized official of the Bank to the customer in writing.
  • The acceptance of the customer will be obtained on the sanction letter with the customer's signature under the caption "I/WE ACCEPT ALL THE TERMS AND CONDITIONS WHICH HAVE BEEN READ AND UNDERSTOOD BY ME/US".
  • A copy of the loan agreement along with all the enclosures quoted in the loan agreement will be furnished to the customer at the time of issue of the sanction letter.
  • The sanction letter / loan agreement will clearly state that the credit facilities will be extended solely at the discretion of the Bank and that drawings under the following circumstances will be solely at the discretion of the Bank.
  • Drawings beyond the drawing power / sanctioned limits.
  • Honouring of cheques issued for the purpose other than specifically stipulated in the sanction.
  • Drawings in an account once it is classified as NPA.
  • No drawings will be allowed in case of non-compliance of the terms and conditions by the borrower.
  • Meeting further requirements of the borrower on account of growth in business will be subject to proper review of the credit limits.

Disbursement of loans including changes in terms & conditions
  • The disbursement will be done immediately on compliance of all the terms and conditions of the sanction by the borrower and the branches need not refer to the sanctioning authority for disbursement.
  • Any changes in the terms and conditions of the sanction such as interest and charges will be notified to the borrower before effecting the changes.
  • Any changes in interest rate and charges will be effected only prospectively after giving due notice to the borrower.

Post disbursement supervision
  • The post disbursement supervision, such as submission of periodical reports and periodic inspection, will be stipulated at the time of issue of the sanction letter. The sanction letter would also mention whether the Bank or the borrower will bear the cost of inspection.
  • The Bank will issue notices to the borrowers in advance in case the Bank decides to recall the advance / accelerate the payment / accelerate the performance under the loan agreement. Or seek additional securities.
  • The Bank shall release all securities on receiving payment of loan. However, the Bank may decide to exercise the right to set off any legitimate right or lien for any other claim against borrower. In case the Bank decides to retain the security, the borrower will be notified about the remaining claims and the documents under which the Bank is entitled to retain the security till the relevant claim is paid / settled.

Others
  • The Bank will not interference in the affairs of the borrowers except where provided for in the terms and conditions of the loan sanction documents, such as periodic inspection, scrutiny of books of accounts, verification of stocks and book debts, and scrutiny of QIS statements.
  • In case any information not disclosed earlier by the borrower has come to the notice of the Bank, the Bank will have the right to elicit the necessary information from the borrower and initiate action to protect its interest.
  • While, the Bank may participate in credit-linked schemes framed for weaker sections of the society, the Bank shall not discriminate on grounds of sex, caste and religion in the matter of lending.
  • In the matter of recovery of loans, the Bank shall not resort to undue harassment such as persistently bothering the borrowers at odd hours and use of muscle power.
  • In the case of receipt of request for transfer of borrowal account, either from the borrower or from other banks / FIs which propose to take over the loan, the Banks' consent or objection, if any, shall be conveyed within 21 days from the date of receipt of request.