Buying a property necessitates in
depth knowledge of real estate and choosing the right kind of loan.
Several banks are stepping up their exposure to real estate. These banks
are entering into agreements with builders for provision of real estate
loan. The Scheme mainly caters to builders / promoters / developers of
real estate. According to RBI figures loans to builders, along with
retail credit (like home loans, credit cards and personal loans)
constitute a chunk of banks' total loan portfolio.
Maximum Amount of Real Estate Loan Offered:
Banks normally
give real estate loans to builders/real estate developers of repute.
Experience of 3-4 years is a must to avail the loan. The quantum of loan
is decided after looking at the financial statements and cash flow
statement of the applicant. The maximum amount varies subject to
individual policies in different banks. Repayment is done in lump sum
installment after the completion of project/ selling of the flats. The
number of installments is restricted to 3 or 4.
Interest Charged by Banks on Real Estate Loan:
The interest
rate is normally determined and charged according to the prime lending
rate of the individual bank. Builders can either opt for a fixed or
floating rate of interest.
Process of Real Estate Loan Approval:
Builders / real estate
developers can fill the loan form either in person or online and apply
for the loan. A nominal processing fee is charged by banks.
Documents Required for Approval of Real Estate Loan:
- Application form with photograph
- Educational qualification
- Identity and residence proof
- Proof of business existence with business profile and last three
years income tax return
- Last 3 years income statement and balance sheet.
- Last 3 month's personal and business bank statements.
- Processing fee check
List of Leading Banks providing Land Purchasing Loan:
