I am planning to buy a flat in chennai which is not approved by CMDA. Can I avail Home loan for this Property ? Please clarify.
If the property you have zeroed down by your locate development authority, ie, CMDA, it will be difficult to get a loan against it. Banks usually provide loans for approved projects only. The legal papers of the builder, including the approvals will be checked by the bank’s pael advocates before disbursing any loans. If your property has not been approved, they will keep it aside and may ask you to wait till the approvals are made.
However, you can get an in principal loan amount sanctioned, irrespective of any projects. Once the project gets approved, you can go in for the project of your choice. It is also recommended to go for approved projects only to avoid complications at a later stage. You can also check with your bank, if te project of your choice is an approved one with them.
Lenders usually do not provide Home Loans for unapproved properties as there might be legal issues with the property. However, if the builder is yet to get the approvals and you are waiting for the same, you can tell the bank about it. You can get a pre-approved Home Loan based on your income and Credit history and the bank will disburse the loan once the approvals are obtained.
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