Articles
Home Loan Facts About an Under Construction Property
by Finway FSC Empowering People FinanciallyHaving
an own house in cities like Delhi is a dream come true for many people out
there. But is it very easy to get a house in Delhi! Of course not, Delhi is the
capital city of India and the pricing of the property there is quite high. This
is the reason why most of the people prefer to get a home loan in Delhi.
This
home loan is a pretty good option, and half of the prospective buyers plan to
invest in the properties that are under construction. The buyers are thinking
that investing in the properties under construction is a better option.
If
you are taking a home loan for under construction property, then you have to be aware
of the following facts.
EMI
Payments on Sanctioned Amount
Generally,
for under construction property, the banks disburse amount in tranches to the
builder. The buyers have to pay the EMI on the amount that was sanctioned for
the builder but not for the amount that has been disbursed.
Simply
put, if the loan amount that is sanctioned for you is 70 Lakhs and the amount
that has been disbursed is only 20 lakhs, you are bound to pay an EMI for 70
lakhs rather than 20 lakhs. This makes sense financially. As there is a high
construction risk involved for both banks and buyers, the banks have made some
stricter rules these days.
However,
the buyers usually invest in these under construction homes to stagger the loan
repayment. The huge EMI outgo repayment right from the first month will surely
burn a hole in the buyer's pocket. If they are living in a rental property, the
situation will be even worse.
Higher
Liability on the Buyer if the Project is Delayed or Defaulted
If
the project is either delayed or defaulted, the buyer has to repay the interest
and the principal amount of the disbursed amount to the builder.
Hence
it is important for you to consider the reputation and track record of the
builder so that the project gets completed right on time. It will be better if
you go to a builder who has been in the market for a lot of time and has huge
expertise. This way you will be at lower risk.
Sponsor Ads
About Finway FSC 
Empowering People Financially
24 connections, 0 recommendations, 99 honor points.Joined APSense since, September 25th, 2018, From New Delhi, India.
Created on Apr 30th 2019 07:01. Viewed 451 times.
