Regarding Loan for Development and Construction of Land in Prime Location

POSTED BY santoshk ON October 16, 2013 9:04 am COMMENTS (6)

Hello

My father have 4800 (2400 + 2400) SQ Yrds of land in the Hyderabad in the prime location. On this, he has Industrial Loan of 3.75 CR ( 2400 SQ Yrds land document is collateral) . Now he is in the position not able to continue the business because of heavy losses from the years. So he gave whole land for the development to builders. For this, builders are agreed to pay 2.75 CR towards the advance to start the construction of the work. Of which, my father used 1 CR to pay other loans. Now builder owes us remaining 1.75 CR to start continue the development work.

Half of our document (2400 SQ Yrds) is with a bank, so builders are not able to continue the work without the GPA and partition of allotments being not done and we are in the situation, where we couldn\’t able to close the loan with the remaining agreed amount from the builder. So the builder has proposed to sell the land to them, and offered us very less amount of the price than the market value, which we are not interested to sell

I also contacted a couple of banks for the loan, they agreed to loan me about 2-2.5 CR as NRI Salary employed towards purchasing a plot or residential property but not for this type of development scenario.

So if you guys have any thoughts or any advice how to proceed further will be greatly appreciated.

Thanks
Santosh

6 replies on this article “Regarding Loan for Development and Construction of Land in Prime Location”

  1. santoshk says:

    Thanks Ashal.

  2. ashalanshu says:

    Dear Santosh, please check your mail.

    Thanks

    Ashal

  3. santoshk says:

    Hello Ashal

    I contact the above mentioned banks, they are saying they can’t able to loan to landowners, they can only loan to development builders. So is there any alternative way you can suggest? If you don’t mind, can you please share your personal contact details to Santoshk2324@gmail.com.

    Thanks
    Santosh

  4. ashalanshu says:

    Dear Santosh, please contact Axis bank, ICICI, BoB, PNB or some HFC like LIC HFC or Dewan or Indiabulls.

    Thanks

    Ashal

  5. santoshk says:

    Thanks for the reply Ashal. I contacted the HDFC bank they said for this type of scenario they can’t able to provide the loan. Do you know any banks that provide commercial loans to NRI’s other than SBI Bank? The penalty clauses have not yet been discussed but they might say to pay back the 1CR advance with the interest charge.

    Again Thanks for your advice.

    Regards
    Santosh

  6. ashalanshu says:

    Dear Santosh, please contact the banks and ask them to consider your case as commercial loan not as home loan. The ROI ‘ll be higher for you but the job ‘ll be done. What are the penalty clauses in agreement if your father cancel the deal with the builders?

    Thanks

    Ashal

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