POSTED BY July 9, 2012 12:42 pm COMMENTS (6)ON
First of all, it’s nice to see a forum addressing peoples concerns and advising them on many aspects. I have read a few cases. I appreciate this. Good going!
I too have a concern.
I have decided to buy a flat with the aid of an housing loan. The builders of the flat (which i have chosen) have tie ups with Punjab National Bank and India Bulls. A person from India Bulls has called me and says i am eligible for the amount i have requested for and that if i produce all the necessary documents, i will be getting a sanction letter through e-mail.
I have following questions :
1.Can i bank on this letter to assume that i will be getting the amount i want or is there any other way to ensure that i will be getting the amount promised?
2.Does housing loan policy of India Bull fall through RBI guidelines?
3.Which would be the better bank among Punjab National Bank and India Bulls for a housing loan?
I have more questions on the builders and the flat which i am planning to buy. As of now, i am expecting a positive response for the above questions ASAP.
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6 replies on this article “Few questions before acquiring a Housing loan in India Bulls and other RBI banks.”
Dear Akarsh, the lender should provide you a sanctioned letter duly signed by an officer from the lender. E-mail sanction is possible if the letter is signed digitally.
Regarding the 2, FYI please – Indiabuills is a NBFC & it’s not governed by RBI. In fact it’s governing body is NHB – National Housing Bank.
Out of the 2 lenders, I w’d like to go with PNB.
If you can take some pain, I w’d advice you to go with SBI’s Max Gain.
Thank you Ashal.
I will surely enquire about SBI’s max gain.
Between, an executive had called me again from India bulls. I told him that i wanted to go with a bank governed by RBI and not Indiabull as it doesn’t come under RBI for which he said NHB also comes under RBI and that in Punjab national bank, there are two divisions,namely Housing and Banking and that the Housing (which releases the loan),comes under NHB and not RBI.
I also checked the following link – http://www.nhb.org.in/
which says NHB is completly owned by RBI.
Are the above facts true?
Any other reason why i should choose Punjab National Bank between PNB and IB ?
Dear Akarsh, NHB is owned by RBI but the playing field for both is different. Indiabulls is not governed by RBI but by NHB. As you posted your query for Indiabulls under RBI, I cleared that doubt.
At any given day, I w’d prefer a bank over a HFC (HDFC is an exception of this rule)
I have one more question Ashal.
The flat i have chosen is still under construction. I am dealing with a agency (Adhaar properties,H.S.R layout) who have taken up marketing for the flat. They claim that the flat will be completed by Feb 2013 and that if i book it now, they can offer it at 37lacs.
Also, they say that the booking amount is 1lac and after i pay this amount, i will be getting few documents using which i can get a legal opinion and within 10days of booking it, i have to pay 20% of the total amount ( INR 6,40,000).Once i pay this amount, i will get an agreement using which i can get a housing loan.
After this, as and when each floor is constructed (totally 4 floors), the bank releases some x amount to the builder.As of now, 2floors have been constructed and the bank will release 40% of the amount to the builders.
But my concern is i have to pay the interest every month (@10.5pa) to the bank for the amount released. The interest i pay will increase as the bank releases the amount and as the apartment is constructed.Finally when the bank releases >50% of the amount, i have to start my EMI.
I was thinking this way. The builder is getting money from the bank in my name and i am paying interest for this till the construction of the flat is completed. Also, if there is a delay in the construction of the apartment, i have to keep paying the interest.
Is there any way i can avoid paying this interest ? Is this risky or any better suggestion to
go for a under construction flat by taking a home loan?
Dear Akarsh, in my opinion, instead of opting an under construction property please go for a ready built property or where the possession is about to ready. All of your concerns ‘ll not be there in this case.
Please do note, in case of delay from developer, the interest paid by you ‘ll eat a big chunk of your gains if any from this property, if you are investing for pure investment purpose & not for consumption.
Alright thank you 🙂