Housing Loan Sanction Process

POSTED BY Sudhir Lad ON April 17, 2013 4:50 pm COMMENTS (3)

I approached SBI for housing loan. Apparently the site is not yet approved by SBI.

I was asked to get the registration done and then approach SBI for loan. I was also given an option to apply for pre-approval. Pre-approval probably is just my entitlement and nothing to do with the property that I intend to buy.

When does SBI do the Title verification? I believe that I am charged for the title verification and search report. Then why not do all this before I enter into a deadlock situation with the builder?

Am I being told the right process?

3 replies on this article “Housing Loan Sanction Process”

  1. Dear Sudhir, please contact the AGM of your local RACPC & check with him the actual need for Index II or alternate. Please do not listen to what your Br. Manager or the RACPC staff is telling. In my own case, Index II was not in my name at the time of loan application as the flat was under construction. Later after the loan was sanctioned, loan documentation was done. On the basis of which, builder registered the property in my name & then only I handed over the property papers to SBI.

    I’m unable to understand, why the staff of SBI is sticking to Index II in your name?



  2. Dear Sudhir, no need to opt for preregistration of the property. Please apply for the loan with all the papers as demanded by SBI. Yes you w’d have to pay a nominal fee towards Title verification & search report. Even do not opt for preapproval also as SBI ‘ll charge you the processing even for preapproval & in case property is not as per SBI standard, the loan ‘ll not be sanctioned.



    1. Sudhir Lad says:

      Thanks for you prompt response.

      I tried taking that route. SBI is telling me that they cannot process my application without Index II in my name.
      Is there a way to work around this problem?

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