[abbey4u]

Originally Posted by DCEite

I have a question.

Suppose, for a newly launched project, i take a loan amount of 80% from a bank, and lets say that booking amount for the property is 10%.
Now lets say i choose for construction linked plan where builder demands certain money after stages of completetion.
In such a case, what happens to the remaining 10% - ie, the amount remaining after subtracting 80% loan from 10% booking amount.
When is this 10% paid and it is paid to whom - the bank or the builder ?

Below info was from SBI Branch Manager. The example was also given by him

You need to maintain the ratio. E.g. If a property is of 1 lac and you need loan of 80 k. and you already paid 10 k. then

- Bank will disburse first 4 installment without asking any part from your side i.e. upto 40 K. This will mean you paid a total of 50 K to builder maintaining a ratio of 80/20
- Now From the next disbursement bank will pay 8K and you will have to pay 2K.


So the ratio is maintained.

[superamerica]

If say a property is worth 50L and I intend to take only 60% as loan and plan to fund the remaining 40% myself. The property is underconstruction and hence I have paid the 15% downpayment and intend to pay the remaining 25% of my share later when the property is ready (2 yrs later). I came to hear from hdfc that they disburse their share only after i have paid up the entire 40% from my pockets. I dont want to empty my savings now doing so. Can anyone who have faced a similar scenario enlighten me on whether this is how it works?

[anujmishra]

Originally Posted by superamerica

Can anyone who have faced a similar scenario enlighten me on whether this is how it works?

You can easily handle this situation by giving Post Date Cheques to builder. Builder will give you receipt of cheques using which you can ask you bank to disburse remaining amount of loan. I have used this method and for me it was suggested by bank only.

Now I occupied my flat.

[superamerica]

Originally Posted by anujmishra

You can easily handle this situation by giving Post Date Cheques to builder. Builder will give you receipt of cheques using which you can ask you bank to disburse remaining amount of loan. I have used this method and for me it was suggested by bank only.

Now I occupied my flat.

That seems like quite an option! So are you saying I can give a post dated cheque to the builder for say 1.5 years from now and then show the receipt to the bank? And bank would disburse its share of 60% until then?

[amohit]

Originally Posted by superamerica

That seems like quite an option! So are you saying I can give a post dated cheque to the builder for say 1.5 years from now and then show the receipt to the bank? And bank would disburse its share of 60% until then?

In case builder is not very cooperative, you can take a loan for 80% of the value. And after you have paid your 20% share, bank will pay its due (assuming that the payment is made linked to construction). When the bank has paid the desired amount, you can make a payment from your side.
Hence, you will have higher loan amount sanctioned but lower amount disbursed.

But PDC option is the best.

Regards,

[superamerica]

Originally Posted by amohit

In case builder is not very cooperative, you can take a loan for 80% of the value. And after you have paid your 20% share, bank will pay its due (assuming that the payment is made linked to construction). When the bank has paid the desired amount, you can make a payment from your side.
Hence, you will have higher loan amount sanctioned but lower amount disbursed.

But PDC option is the best.

Regards,

Actually Im in a Catch22 situation. I dont want the sanctioned amt to go beyond 30Lakhs since at the lower side of 30l is where a lot of benefits are offered. In case of SBI maxgain is available only below 30l, along with a lower % rate and a bigger spread (SBAR -2%).

I just checked the receipt given by the builder for my contribution of 15%, it says complete cheque details including the date of cheque!! . I believe for the bank to accept the receipt should not show up the cheques as PDC's.

[phamilyman]

Originally Posted by abbey4u

Below info was from SBI Branch Manager. The example was also given by him

You need to maintain the ratio. E.g. If a property is of 1 lac and you need loan of 80 k. and you already paid 10 k. then

- Bank will disburse first 4 installment without asking any part from your side i.e. upto 40 K. This will mean you paid a total of 50 K to builder maintaining a ratio of 80/20
- Now From the next disbursement bank will pay 8K and you will have to pay 2K.


So the ratio is maintained.

They say that but reality for e.g HDFC is opposite. In projects with some risk (read DLF Newtown heights) - they made my friend put all HIS cash in, before putting a penny from their side.

Be prepared to put 20% upfront, else don't bother with the purchase.

And always always discuss commitment charges, except HDFC, most are total cheats.

[anujmishra]

Originally Posted by superamerica

I just checked the receipt given by the builder for my contribution of 15%, it says complete cheque details including the date of cheque!! . I believe for the bank to accept the receipt should not show up the cheques as PDC's.

Bank only need receipt of payment. Whether made by cheque, cash, on date, post dated does not matter. Talk to your builder personally and explain him problem. He will help you coz he is one who will get MONEY.

[kalpeshc]

Originally Posted by superamerica

Actually Im in a Catch22 situation. I dont want the sanctioned amt to go beyond 30Lakhs since at the lower side of 30l is where a lot of benefits are offered. In case of SBI maxgain is available only below 30l, along with a lower % rate and a bigger spread (SBAR -2%).

I just checked the receipt given by the builder for my contribution of 15%, it says complete cheque details including the date of cheque!! . I believe for the bank to accept the receipt should not show up the cheques as PDC's.

SBI has launched a new scheme for loans up to 50L. Check that out. It's similar if not better.

[sumeethaldankar]

Hi , a quick question ,while buying property (flat etc) is it wise to transfer funds through online banking or should one stick to payments through DD,cheques etc.


thanks

[saildrive]

What is a commitment charge?

[DCEite]

Guys,
I am looking at applying for home loan for a property in NCR. The builder is pushing me to take home loan from Axis Bank. However, doing some reserch i thought it will be better to go to a public sector bank like SBI even though SBI margin money is 20% whereas Axis bank provides 85 % loan (margin money 15 %).
I am confused. I will be taking the construction linked plan. Which home loan to go for - Axis bank/ SBI / Bank of India (my savings account is here) OR some other ?

[mithun]

Originally Posted by saildrive

What is a commitment charge?

OECD Glossary of Statistical Terms - Commitment charge (or Fee) Definition

DCEite: You can go for SBI. But I've heard that Axis provides a cheaper loan than SBI. Compare it at BankBazaar.com

[NetfreakBombay]

Originally Posted by DCEite

Guys,
I am looking at applying for home loan for a property in NCR. The builder is pushing me to take home loan from Axis Bank. However, doing some reserch i thought it will be better to go to a public sector bank like SBI even though SBI margin money is 20% whereas Axis bank provides 85 % loan (margin money 15 %).
I am confused. I will be taking the construction linked plan. Which home loan to go for - Axis bank/ SBI / Bank of India (my savings account is here) OR some other ?

Look at PNB. It has decent interest rates for fixed as well as floating loans.

[Shakensoul]

Dealing with Axis Bank customer care will be a nightmare

I transferred my home loan from Axis Bank to HDFC, even though at a higher side, for peace of mind.

From the options, I would say try SBI.