All of us have a mortgage requirement at some point or the other in our lives. Whether it is for buying our dream home, or financing our educational needs, or for any other reason whatsoever, all of us have resorted to drawing a mortgage at various stages of our lives. Before we dive into understanding the different technicalities that are inherently associated with taking a mortgage, it is first essential for us to understand the concept of disposal in the first place. 

Expenditure is a sum of money paid by a solicitor to a third party while making a sale or a purchase for their client. Effectively, it can be considered an out-of-pocket expense that a solicitor incurs on the client’s behalf to expedite the sale or the process in question. This amount is then subsequently added to the final invoice of the client. The amount that a client pays for expenditure, hence, is the exact cost of the expense borne by your solicitor at the outset. 

Some Examples

A typical example of a disposal fee is the money paid for medical reports or other related transcripts handed over by experts. Land registry fees, search charges, and same-day electronic transfer of fund fees constitute other examples of disposals. Some of the other cases or processes in which expenditure charges are levied are bankruptcy searches, local authority searches, environmental searches, house loan charges, drainage searches, telegraphic transfer fees, and stamp duties, among many others. 

In most cases, and rather frequently, mortgage processing fees tend to become a major cost. Especially in those processes that require reports to be furnished by the relevant experts to establish evidence for the case, the fees generally end up being on the higher side of things. A good example of such a case is a disability case, where the claimant must first establish and confirm their disability before proceeding with the subsequent stages of the process. Such a mechanism, thus, proves to be a major hurdle in cases involving discrimination. 

Home Loan Disposal Process

In the case of a home loan, the final stage involved in the loan process is referred to as the disposal. 

• It is the stage where the lender pays the loan proceeds to the seller if it is a resale property, or to a builder if it is a new property, depending on the terms and agreements of the home loan agreement that the applicant has entered into with the lender. 

• Here, the concerned housing finance firm will disburse the complete mortgage amount only after the technical appraisal of the property, reception of personal contribution by the applicant, and the documentation of the property have been accomplished. 

• After these processes, the applicant requests a disposal online or offline. 

• Based on the stage of completion of the property's construction, the finance will either be disbursed in stages, or in full. 

• Consequently, the housing finance organization will provide you with an account statement, enclosing all the details such as the loan instalments that have been disbursed, the EMI instalments paid by you, and the kind. 

• The lender will only consider the construction stage, and not consider any instalment payment timelines, should the builder stipulate them. 

• In case of complete disposal, the applicant’s EMI payments will start from the month following the one in which the expenditure has been carried out. On the other hand, in the case of partial disposal, the applicant might be required to pay the pre-EMI interest of the loan charges till the full expenditure has been executed.   

Education Loan Disbursement Process

Disbursing an education mortgage refers to the eventual stage in the mortgage process that is availed by a student aspiring to study abroad. Here, the term disbursement is associated with wiring the sum of the education loan to the borrower’s account from the lender’s. 

• The education loan disbursement processes that are adopted by most government banks in India are invariably the same. 

• The education loan by these institutions is approved by first issuing, and sending the respective students a sanction letter subsequently. 

• Upon receiving this letter, candidates and all their associated co-claimants must visit the respective branches for both creating the mortgage, and signing an education loan agreement. 

• Once the students and their co-applicants sign the agreement, the loan becomes fit to be handed out to the borrower. 

• However, the disbursement mechanism does not come into action immediately post-signing. 

• Students are first needed to deposit an education loan disbursement letter to the respective branches of their choice. They also need to mention the method and mode of tuition fee payment favored by their universities. 

• This is done to ensure that the students get their education fees and mortgages wired at the appropriate time. Some universities in the USA and other countries prefer third-party remittance services to get their tuition fees deposited, which threatens to delay the mortgage transfer process in some cases. 

• It is important to note that no government bank transfers the tuition sum for their complete course in a single shot. Instead, they release the sum only when they receive the students’ requests, which is mostly on a semester, or a yearly basis.

Fees and charges maintained by the top banks in India

Bank Name	Processing Charges	Pre-payment charges
HDFC	Up to 2.5%	4% of the outstanding principal for 13-24 months, 3% for 25-36 months and 3 % beyond 36 months
ICICI	Up to 2.25% excluding GST	5% p.a. of  the outstanding principal, excluding GST
The State Bank of India	0-1% of the mortgage amount	3% for power mortgages and pension mortgages
Union Bank of India	0.5% of the mortgage amount	-
Bank of India	2% of the morgage amount excluding tax	Zero for floating-rate mortgages and 0.65% per annum of the outstanding mortgage amount for fixed-rate mortgages

Opt for Shriram City Union Finance

As India’s leading NBFC, we pride ourselves in guiding you to a future of financial security. To facilitate that, we offer our customers a wide range of services, some of which are listed below: 

• With Shriram City Union Finance, you not only get to avail of the best range of disbursement charges for your various requirements, but also get the promise of getting all these processes expedited at the earliest. 

• Whether it is a personal loan, or a housing loan requirement to achieve your life goals and secure your dream house, or an educational loan to fulfil your passion, our range of prompt financial services will always have you covered. 

• We aim to resolve the complications associated with these procedures and work round the clock to ensure that you can reach one step closer to the destination of your choice. 

• We provide specialized services in retail and Micro Small & Medium Enterprise (MSME) lending alike.

Shriram City’s broad basket of financial products caters to a vast and diverse demographic to fulfil our customers’ necessary needs and requirements. Spread across 947 branches, we have an all-India presence, and we strive to be at your disposal round the clock.

We are dedicated to our vision of creating value at the bottom of the pyramid and leave no stone unturned to maintain the highest standards in the fields of corporate governance and timely delivery of quality non-banking financial services.