In our continued customer education series we have brought property facts that are checked by banks for financing any property.
And they keeps it simple.
Yes, banks has to keep 2 checks to see if property is loan able or not
- Legal
- Technical & Valuation
Legal Of Property
To execute loan for / against any property it is important that property is legally correct. This is first and foremost thing for property loan.
Legal report is made by lawyer on bank’s panel. Based on type of property, they evaluate correctness of title of property. They get title search report from registrar / sub registrar / builder where property is registered. They also verify that property chain also correct. Any mistake in chain can be reason for legal suite from previous owner or their heirs. If there is anything is missing or found to be not done as per law, lawyer will deny bank to finance the property.
This is area of property loan where things can not be played around.
To put it simple, Client’s profile or technical profile of property norms may some time be relaxed for property loan. But if there is even a bit problem in legal chain of property, then there are almost 0% chance that you will get loan from bank.
Technical Correctness Of Property
Technical report is to verify of correctness of property construction as per building by laws. A technical team visits property and verifies that property is constructed as per map / building plan passed by authority. Some degree of deviation from plan can be considered by banker to finance the property. But on deviation being too much, like too much extension or purchasing a floor in which stairs are outside plot area, banker may consider property invalid for financing.
Technical team submits properties valuation report based on land and construction cost.
Based on your eligibility Banks gives following maximum loan
Home Loan – 85% if loan amount is less then 20 lacs
Home Loan – 80% if loan amount is more then 20 lacs
Loan against Property – 60-70%
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But you can get more then this.
At Joy Loan we understand that you are unique, so are your requirements especially when it comes to loan. We’ll be there for you at every step, keep you updated at every step to ensure hassle free documentation and processing.
In case you are looking to purchase a property which do not have a valid sanction plan, or looking to take loan against property on any such property. Get in touch with us. We may still get you what you just need.