Home Loan: Is your project bank approved?

BANK-approved realty projects are the norm of the day! Walk into any bank for a home loan and get treated to a spree of projects approved by that bank. In other words, you don't need a real estate agent; the bank will help you get that dream home and finance it too!

"Home-buying today is a lot easier than it was, say, a decade ago," says garment dealer Upendra Shah, recalling the process of buying his 2 BHK-apartment, last December. "I didn't really have to do a thing once I approached a financial institution for the home loan!" he says.

"They did everything for me...from short-listing the appropriate property, keeping in mind my budget; ensuring the required permissions and title documents, the reputation of the builder in terms of timely delivery, et al," offers Mr Shah, who "thankfully didn't have to run from pillar to post" during the process.

With cutthroat competition in the market, banks and other lending institutes are soon turning into a one-stop-shop for most home-seekers. Besides offering financial assistance for that dream home, today lenders also help your select a home in a property that meets all the necessary legal and technical requirements.

"When a project is said to be approved by us, it primarily means that the title is clear and the construction is as per approved plan," says Rajiv Sabharwal, Head, Mortgages and Real Estate, ICICI Bank. "Though the practice of opting for bank-approved projects has been prevalent for a long time, now it's developing into a trend for good," he maintains.

"And, it's not just the customer that benefits, it works both ways. If we're giving a home loan, we need to be certain about the quality and security aspect. And, what better way than to offer the customer projects that we approve of. That way, everyone is happy!" says Sabarwal.

IDBI Bank seconds the popular realty trend. "Most home-buyers are completely at sea with the various legal and technical matters vis-à-vis the property to be bought. In such a scenario, bank-approved projects come as a blessing," says an IDBI Bank personnel.

Realising this, most lenders follow a single-window concept whereby they have qualified legal and technical in-house staff to scrutinise the property documents and permissions. Incidentally, most lenders also have the master files of most residential projects by reputed developers. That way, the potential client needn't lose hair over anything. Not only is this timesaving but also saves the customer the hassle of visiting different property sites or then, authorities to obtain the clearances.

"Buying a home isn't just about obtaining finance - which is available relatively easily today - the home buyer also needs to be aware about the property
s\he is planning to buy, the price s\he is likely to pay, the required permissions and title documents, the reputation of the builder in terms of timely delivery and the like," maintains HR executive Malini Suryavanshi, who recently bagged a home-loan from a private bank.

"I didn't need to go on a house-hunting spree to zero in on the home that I was looking for. I just went through the master files of some residential projects in the suburbs at the bank and decided on what best suited my requirement," says Suryavanshi. "All the required expertise is available in-house and the whole process so hassle-free and suave that I didn't even realise that all my documents had been processed!" she adds.