For most of us, one of the major goals that we set up for us is to own our own home one day. Even if somebody inherits a property, there is always an effort to create your own property which becomes your dream home. Home loan schemes offered by the lending institutes like banks or non-banking financial companies help in making your dream come true.
Buying a home in one’s lifetime does not happen very often. You need to make a conscious decision, check out the market for the best home loan interest rates that are offered by various institutions. The most convenient way to check the interest and what is going to be your monthly commitment to repay the loan is to access the home loan EMI calculator which is embedded on the official websites of all the lending institutions. Just by entering the basic details like your desired term of repayment and the loan amount, you will get to know the EMI that is going to be coming on to you as a liability if you happen to avail of the loan.
What Are Bank Approved Projects And Properties?
When you start searching the various sites of either real estate developers or the lending institutions, you shall come across notifications like “Project Approved by XYZ Bank”. As a potential buyer of a house property, you need to know what does the term “approved” mean as that is a crucial aspect in the entire process of owning a home for yourself.
Bank approved projects are the projects that have cleared the due diligence carried out by a bank. The due diligence carried out by the banks is an exhaustive process. The banks ensure there are no complications on the title deed, and the legal aspects related to property deals have been fully complied with. Banks also verify and inspect the plan, the construction to make sure all the permissions etc. have been duly sought.
The valuation of the property is also ascertained by the bank compared with the going market rate. Once the property clears all the verification parameters of a bank, it is called a “Bank Approved Project or Property”.
The real estate companies also show keenness to get their projects approved as that improves the marketability of the project.
Advantages Of Bank Approved Projects and Properties:
Some of the distinct advantages of choosing a bank approved project or property include:
1. Convenience of Loan Approval:
Since an approved project would have already passed the test of verification, the speed of approval of your home loan application becomes faster.
2. Quality of Construction:
By choosing a bank approved project you are assured of the quality of construction. Also, you will be sure the construction of the property is in accordance with the sanctioned plan which has been approved by the local civic authorities.
3. Compliance with Building Norms:
The building norms like the built up area, distance from the road, a permissible height of the property etc. are all compiled within an approved project.
4. Considering Hygiene Factors:
A project approved by a bank would have basic hygiene factors taken care of already. The project would have market accessibility. Basic amenities shall be provided along with the property. Also, matters like proximity to slums, graveyards may not happen for approved projects.
5. Project Completion Timelines:
In an approved project, the bank, who is approver, keeps a close watch on the commitments made by the real estate developer. Banks track the progress of the approved project to ensure the timelines for completion are met.
However, it should also be noted that choosing a project which has been pre-approved by the bank does not entail automatic sanction of your home loan application. Hence, you should check your home loan eligibility at the beginning when you start planning to buy a house property.