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POSTED BY ON February 10, 2013 3:43 pm COMMENTS (3)
Dear Sir,
I am Ela Selvaraj an NRI from Germany but basically from Chennai, India. I bought a flat in chennai which cost 77 lakhs and it is the 100th project for the builder. So, basically he has tie-up with banks like Axis, IOB, LIC and PNB but not SBI. I am well aware of the benefits of Max-gain but builder is not appreciating in applying home loan in SBI. so before I come back to Germany I applied home loan in 2 different banks. one is Axis bank which they approved the project and another is SBI maxgain (but not the approved project).
As far as, Axis banks is concerned, they got all the docs what they required from me and I am expecting the loan sanction before next wednesday (13 Feb, 2013) but SBI chief manager (I know him personally) mailed me to get another 2 docs (passport, visa and my company ID) to be notarized in Germany but promised me that he requested the processing centre to process my application without waiting for the notorized documents. But apart from these documents, I submitted everything perfectly what they required. So I am assuming that they will not require any more docs from me. But the question is how long does it take for legal opinion and valuation from the application date of 31 Jan 2013.
I am also afraid, if the Axis bank gets sanctioned the builder will force me to register the property soon as because I have POA in chennai and the project hand-over is in April 2013. Please help me with the questions below,
1. how the Axis bank will release the money after the loan sanction, don’t I need to sign the documents to release the money to the builder or just like that Axis bank can release the money? how does it work.
2. Incase, if I am taking the Axis bank loan can I switch back to SBI within a month after the loan sanction in SBI and whether its possible? How much it will cost and whether Axis will allow me to switch the loan within a month or there are some restrictions?
3. Is there any problem in applying home loan in 2 different banks? I already spent processing fees of 11,350 rs for Axis bank and 3250 for SBI bank (+5000 rs for legal & valuation) but I don’t mind it.
4. SBI Chief manager also told me that he can approve only 80% from the valuation report. I am afraid, whether the valuation will be less than what I applied for. But from research I came to know that ICICI bank is approving projects in that area for 8000 rs/sq.ft and my flat costs 6400rs/sq.ft. What you suggest if SBI valuation goes below the cost of the flat?
I am really confused, I need only SBI Maxgain but don’t know how to tackle it right now. Please suggest me how to proceed further.
Looking forward to your reply
Ela
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Dear Ela,
Below are the answers to your queries:
The amount of time the bank takes for legal opinion and valuation from the application date would depend on the bank’s policy.
• Yes you or the individual having the POA will have to sign the documents, for Axis bank to release the money to the builder.
• We assume that you should be allowed to shift your loan to SBI within a month. However we would suggest that you confirm the same from Axis Bank.
• No there is no problem if you apply to 2 banks for the home loan except for the fact that you could have saved the processing fees.
• If in any case the SBI valuation is below the cost of the flat (which is unlikely), we would suggest that you opt for some other bank.
Regards,
Credexpert
Hi Ela,
The legal opinion and valuation should not take more than couple of days. I recently approached a SBI branch in chennai for the same and was able to request the manager to get this done quickly and on priority.
One thing which you need to be aware for SBI max gain loan is that the SBI bank had started to insist on registration of Sale Deed and Construction Agreement if this has been signed after Dec 2012. Also SBI chennai branches insists that UDS needs to be registered for the loan to be disbursed. Kindly check these details with your SBI branch manager.
Thanks
Vijay
Dear Ela, the SBI procedure can take any time from 7 days to 3 months. Take your own pick from the above.
Regarding your queries, here is my input.
1. how the Axis bank will release the money after the loan sanction, don’t I need to sign the documents to release the money to the builder or just like that Axis bank can release the money? how does it work.
After sanction order, Axis bank ‘ll ask you to sign the loan agreement & with out this, no disbursal ‘ll be done. so no release of money directly by bank to Builder.
2. Incase, if I am taking the Axis bank loan can I switch back to SBI within a month after the loan sanction in SBI and whether its possible? How much it will cost and whether Axis will allow me to switch the loan within a month or there are some restrictions?
Yes, you can switch within a month, on paper but actualy you may face a lot of hardships. No Axis bank ‘ll not invite any penalty.
3. Is there any problem in applying home loan in 2 different banks? I already spent processing fees of 11,350 rs for Axis bank and 3250 for SBI bank (+5000 rs for legal & valuation) but I don’t mind it.
There is no problem while applying with 2 banks.
4. SBI Chief manager also told me that he can approve only 80% from the valuation report. I am afraid, whether the valuation will be less than what I applied for. But from research I came to know that ICICI bank is approving projects in that area for 8000 rs/sq.ft and my flat costs 6400rs/sq.ft. What you suggest if SBI valuation goes below the cost of the flat?
In all probability, the valuation report ‘ll be more than what you are paying in actual.
Thanks
Ashal