You went to a restaurant, and you ordered one pizza at 1 P.M., but your order was delivered at 1:20 P.M. Then TAT will be 20 minutes. On the other hand, suppose a customer gives a loan application on Monday at 10:00 A.M., and his loan gets approved on Tuesday at 10:00 A.M., then TAT would be 24 hours. It simply means the total time taken in processing the loan is 24 hours. Understanding the TAT full form and how it applies to your application can help you plan your property purchase better and avoid unpleasant surprises at the last minute.
In this blog we are going to learn all about TAT, its full form, its meaning, and its role in home loan processing.
TAT full form: what does TAT mean?
The TAT full form is Turnaround Time. It simply means the amount of time taken to complete a particular task or process from the time it is initiated/requested until it is completed.
TAT is not something that is only related to finance. Hospitals use it for lab reports, courier companies use it for deliveries, and IT teams use it to resolve the support tickets.
TAT Meaning in Banking
Let's understand the meaning of TAT in banking by one simple example.
Suppose a customer applies for a 5 lakh business loan from a bank. A on Monday at 10:00 AM
Application submitted Monday: 10:00 AM
Documents verified: Monday afternoon
Credit assessment completed: Tuesday
Loan approved: Wednesday
If the company says the loan approval TAT is 48 hours It means they aim to complete the approval process within 48 hours after the relevant process/application starts (subject to their stated conditions).
Here are some typical instances of bank turnaround times:
Creating a debit card and opening a savings account
Completing a fund transfer request or clearing a check
Addressing a client grievance or an unsuccessful transaction
Sending out a loan closure letter, a no-dues certificate, or a statement
Approving and paying out a loan
Therefore, the quick answer to the question "What is TAT in banking?" is that it refers to the promised time period for finishing a banking service. Although it should never come at the expense of appropriate checks, a quicker TAT typically indicates more efficiency.
What is TAT in home loan processing?
Each of the numerous processes involved in a house loan, sales, credit, legal, technical appraisal, operations, and disbursement is managed by a separate team. The time it takes the lender to move your file through these phases from the day you submit a complete application to the day the loan is authorized or the money is released is known as the TAT in home loan processing.
TAT is typically monitored by lenders on two levels. The first is the total turnaround time, which is the amount of time between application and payment. The second is the time allowed to each department, or stage-wise TAT. By keeping track of both, you can see where your file is stuck, and the lender may identify areas where delays are occurring.
There is one thing to keep in mind. The start point for TAT depends on the lender's policy. In many cases, the processing clock begins once the lender receives a complete application and the required documents. If additional information or documents are requested, the lender may pause or exclude that period from the applicable TAT, depending on its stated terms.
Also read: what is CERSAI, meaning, full form, charges, and registration .
Stage of home loan processing and their indicative time
There are certain stages of home loan processing; let's understand this by this table.
Stage | What happens | Indicative time |
Application and document submission | You fill in the form, pay the processing fee, and submit KYC, income, and property papers. | 1 to 2 days |
Credit appraisal | Lenders check your income, credit score, existing obligations, and repayment capacity. | 2 to 5 working days |
Legal and technical verification | Lawyers check the property title and documents; a valuer inspects and values the property. | 3 to 7 working days |
Sanction | The lender issues the sanction letter with the amount, rate, and tenure. | 1 to 3 working days |
Documentation and disbursement | You sign the loan agreement, and the lender releases the amount to the seller or builder. | 2 to 7 working days |
What is the standard TAT for a home loan?
There is no single rule, and each lender has a different standard TAT for a home loan. Most borrowers get a sanction within a week to two weeks of sending in their full file. However, the whole process from submission to payment can take anywhere from two weeks to a month or more.
If you want to know how long it takes to get a home loan, the truth is that it depends on the lender, your situation, and the property. People who are salaried, have clean documents, and have a house that is ready to move into often move faster. It usually takes longer for self-employed applicants, projects that are still being built, or properties with a complicated ownership background.
While banks, housing finance companies, and NBFCs all offer home loans in India, the time it takes to handle loans varies between them. Ask your lender for an estimate, either in writing or over the phone, and use it as a goal rather than a promise.
How TAT is calculated for a home loan
There are certain stages for calculating TAT for a home loan.
Most lenders figure out TAT by having a clear beginning and end point. In general, this is how it works:
Start: The lender will start the clock when they receive your application, along with all the required papers and the processing fee.
Stages: Each stage, like checking your credit or getting legal help, has its own due date. These are added together to get the TAT as a whole.
Pauses: If the lender asks a question and waits for your answer or for a report from a third party, the lender usually doesn't have to pay for the time they wait.
End: The punishment TAT timer stops when the letter of sanction is sent out. The payout TAT ends when the money is sent out.
To put it simply, TAT = Completion date/time − Start date/time. Making the choice of what is "complete" is hard, which is why it's best to send everything in correctly the first time.
Factors affecting home loan processing time
How fast your file moves depends on a number of factors. The main things that affect how long it takes to process a home loan are:
papers that are not complete: The most common reason for delays is papers that are missing, blurry, or don't match.
Credit history: An appraisal goes more smoothly if you have a good credit score and a history of on-time payments. If there are mistakes in your credit report, it may take longer to get approved.
Type of job: People who are salaried usually don't need as many papers as self-employed professionals or business owners, who might need to show tax returns and financial statements.
Type of property and its current status: properties that are ready to move into and have a clear title are easier to check out than properties that are still being built or that have older, more complicated paperwork.
Legal and technical reports: If the valuer or legal team takes too long to get the report, it directly delays the punishment.
The amount of the loan: bigger loans may need more approvals.
When the lender asks a question, you should answer quickly so that the file keeps moving.
Time of year and workload: Holidays, the end of the financial year, and a lot of applications can add a few extra days.
How to reduce home loan processing time
You can't change every step, but there are many things you can do to cut down on the wait. If you want to shorten the time it takes to process a home loan, these useful steps can help:
Keep your Know Your Customer (KYC) information, proof of income, bank statements, and property documents ready before you apply. Make sure the copies are clear.
Look over your credit report ahead of time and fix any mistakes you find. Also, don't apply for any other loans at the same time.
Carefully fill out the application so that all of the names, addresses, and information about your income are the same.
Pick a house that has a clear title and all the necessary licenses. This will speed up the legal process.
Answer the lender's questions as soon as possible, if at all possible.
Pay the processing fee and finish the paperwork right away so that no one else has to wait.
Get help from a loan advisor with a lot of experience. They know what each lender wants and can check your file before you send it in.
Why understanding TAT matters for homebuyers
It's more than just interesting to know the turnaround time. In real life, it helps you. You can better time your token payment and builder promises, keep a property from going to someone else because of a late sanction, compare lenders based on both service speed and interest rate, and talk to the seller about what you can realistically expect. If you need to buy something quickly, a lender with a slightly higher rate but a much faster TAT might be a better choice. You should look at both.
FAQs
What is the full form of TAT in banking?
TAT stands for turnaround time, which means the amount of time taken to complete a particular task or process from the time it is initiated/requested until it is completed.
What is TAT in a home loan?
It is basically the time taken by the lender to process your home loan application.
How long does it take to process your home loan application?
It can range from one to two weeks for a sanction in straightforward cases.
Are public holidays included in TAT?
A public holiday is not something included or excluded; it totally depends on how the company defines its TAT.