Do I need to clear full amount before registration so that bank releases Loan amount?

POSTED BY arunj ON March 1, 2014 9:15 am COMMENTS (3)

I applied for a Home Loan (for 15 lakhs, 10 years, property value 38 lakhs) from SBI recently. As per my agreement I have to pay 95% by registration and rest 5% during handover.

If I clear upto 95% of the property cost by registration (i.e. I clear 21.1 lakhs from my side, bank has to pay loan amount 15L) and submit the receipts to the bank, will the bank release full 15L to builder? Builder has given demand letter of 15L to bank citing that 95% project is completed.

Or do I need to clear full 23L of my amount by registration before bank releases its 15L? My concern is that in this case I will end up paying all the amount before handover.

Thanks!

3 replies on this article “Do I need to clear full amount before registration so that bank releases Loan amount?”

  1. ashalanshu says:

    Dear Arun, OK, Go ahead.

    Thanks

    Ashal

  2. arunj says:

    What I understood finally is that the bank has released full amount because the in the demand letter (made by the builder and I submitted during documentation at bank) builder has mentioned 95% of work is done and requested for releasing full loan amount 15 lakhs. There was no Tripartite Agreement done.

    When I told the builder that in that case I will pay less from my share so that the total paid amount is 95% before registration, he said he wants full payment from individual side before registration. He said he is OK if bank pays some amount less now but not individual.

    So now the situation is the bank says they have approved release of full 15L in one shot because of the demand letter (which still says 95% of work is done though), builder says he want full payment due from my part.

    I am thinking of paying as he wants and going for the registration ASAP.

  3. ashalanshu says:

    Dear Arun, Bank ‘ll release the loan amount as per your basic %age share between you and bank for the property.

    Thanks

    Ashal

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