PDD in the context of banking, particularly home loans, typically refers to Post Disbursal Documents. These are documents that the borrower is required to submit to the bank after the loan amount has been disbursed (released).
In other words, PDD doesn't refer to a specific bank named "PDD bank." It's an abbreviation related to loan documentation processes.
Here's a breakdown:
- Post: Meaning after.
- Disbursal: Refers to the release of the loan amount to the borrower.
- Document(s): Refers to the paperwork and proofs required by the lender.
Examples of Post Disbursal Documents for Home Loans:
While the specific documents required can vary from bank to bank and depend on the specific loan agreement, some common examples include:
- Property Insurance Policy: To demonstrate that the property is adequately insured against damage or loss.
- Encumbrance Certificate: To prove that the property is free from any legal dues or mortgages.
- Receipts for Stamp Duty and Registration Charges: To confirm that the property has been properly registered in the borrower's name.
- NOC from Housing Society: If the property is in a cooperative housing society, a "No Objection Certificate" may be required.
- Updated Property Tax Receipts: Proof of current property tax payments.
The purpose of these documents is to provide the bank with continued assurance that the loan is secure and that the borrower is maintaining the property and fulfilling their legal obligations related to it.
