MONTHLY ADVANCE PAYMENT TO BUILDER TOWARDS FLAT COST

POSTED BY prabhoov ON July 11, 2012 1:11 pm ONE COMMENT

Sir, I propose to buy a flat in Chennai costing around Rs.33,19,000/- for 1BHK. The builder wants to me pay Rs.9,50,000 on booking of flat and the remaining on monthly @ Rs.72,700/- for 30 months. The builder yet start his multi-storied flats construction. He said it will take a minimum of 30 months to finish construction and on handing over he will register the UDS along with the flat. Is it worth buying a flat from him ? He makes only agreement. If I take loan from Bank/LIC around 25,36,000/-, at the starting stage itself, how the bank will calculate interest since they have to may monthly Rs.72,700/- to the builder ? Secondly, what is the interest I have to Bank for 15 years ? How much I lose since I pay to builder @ Rs.72,000/- advance for 30 months without any possession ? Is it correct to go for this project ? If builder defaults, what will be the loan taken from the Bank/LIC ?

One reply on this article “MONTHLY ADVANCE PAYMENT TO BUILDER TOWARDS FLAT COST”

  1. Dear Prabhoov, Please do not fall into the trap. If you are really interested to purchase, please opt for a bank loan. By the way, from where you ‘ll arrange that 72K amount months on months?

    Regarding the interest charged on the loan, it ‘ll be charged only on the amount disbursed till date. Also please do note bank ‘ll not disburse on mly basis but disburse based upon the project %age completion.

    Thanks

    Ashal

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