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