Comply with RERA for loan eligibility
Posted on: 27/May/2017 2:39:50 PM
Got any ideas to apply for housing loan? You may have to check whether your builder is compliant with the new rules by the centre. If not so, your loan approval might not get sanctioned. Loans applied towards projects that do not comply with Real Estate Act 2016 will not get approved, as per banks’ latest decision. This is inclusive of states like Tamil Nadu that have not implemented it so far.
A circular has been issued by the State Bank of India in this regard and the others will also follow the same. SBI has handed over a checklist to all the loan processing officers to make sure that loans are approved for projects that are 100 percent compliant to the Act and to identify whether the promoter has got a legal title to the land that is proposed for development and it has to be free from encumbrances.
It is also necessary for the bank to check if the promoter has opened an account in the name of the project and handed over the insurances of building and land of the realty project. In all the states where RERA is implemented, only after obtaining registration number will the real estate loans be sanctioned.
