What to do now? I have to construct my home. What to do now? Mangat

I have a plot in East of Kailash (Gadi village). I need Rs 50-60 lakh for construction the plot is worth Rs 2 crore. ICICI Bk rejected the construction loan as area is in negative list of bank. What to do now? I have to construct my home, please help.

Answer :
If the proposed construction falls under the list of negative areas of other banks too, the chances of getting finance for the construction of the property seems bleak. You can try applying to the local co-operative banks that may be willing to lend you based on their local knowledge and your relationship with them, though the rate of interest will be on the higher side.

Can I approach consumer court for case against ICICI Bank? – Pushpendra

I was alloted plot by JDA. I was to make payment within 90 days for allotment. ICICI Bank took more than 90 days to sanction loan and gave us the cheque for land loan very late. Because of this JDA imposed ~1,31,000 penalty. Can I approach consumer court for case against ICICI Bank?

Answer :
Generally loan sanctioned is delayed if the applicant is unable to furnish all necessary documents on time. Code of Bank’s Commitment to Customers clearly states under 8.12.1.2 d “We will convey our decision on your loan application for a limit up to Rs. 20 lakh within 30 working days from the date of receipt of the application provided your application is complete in all respects and is submitted along with all the documents as per ‘check list’ provided. We will convey our decision on applications beyond Rs. 20 lakh within a reasonable time frame”

Since you feel the bank deliberately took more than 90 days to sanction your loan, you can address your grievance to the nodal officer of the bank, details of which are given on the bank’s website. If after 4 weeks of this complaint also, the issue is not resolved you can complain to the banking ombudsman on the RBI website. The link for the same is www.bankingombudsman.rbi.org.in

Can I get loan for buying a Non-Agri plot worth 30 lakh? – Amol Rane

I am a govt employee salary 50,000/mo, age: 28 years… Can I get loan for buying a Non-Agri plot worth 30 lakh? Want to construct after 3-4 years?

Answer :
For self-construction of a house, you can avail composite loan. But most lenders will ask you to start the construction of dwelling unit on the said plot within a period of 2 years from the disbursement of loan, however lenders like HDFC Ltd will allow you to start construction within a period of 5 years.

The composite loan is considered at par with home loan for the purpose of eligibility, rate of interest, tenure of the loan etc. The loan is given to finance cost of land as well as cost of construction of property on such plot of land. The banks will require documents in respect of proof of income, identity, residence for the home loans and documents relating to title of the property being purchased. You will have to submit an estimate of the total cost of construction, certified by an architect/civil engineer. The cost of the plot to you or the current market value, whichever is lower, will be taken into account to work out the total cost of the project provided you commence the construction within a reasonable time after purchase of the plot. The bank will determine the home loan amount based on the total cost comprised of construction cost and cost of the plot. The loan will be released in parts, based on the progress of the construction, and after you have brought in your full contribution. The bank may insist on sending its own technical personnel to assess the progress of construction or may rely on certificates/photographs submitted by you. Some banks are not comfortable funding self-constructed properties and hence, you will have a narrower choice as far as number of lenders’ is concerned.

In case you don’t intend to start construction within the defined period as required by the lender, then you will have to opt for a Plot Loan. A Plot Loan is taken to purchase non-agricultural plot where you want to construct your home.

Plot loans are more restrictive and available only to non-agricultural plots bought from statutory authorities or approved developers.
Normally, lenders will not finance more than 60% to 65% of the total cost of the plot and the remaining 35% to 40% has to come from your own sources. Also plot loans are more expensive and available for shorter tenures unlike a regular home loan.

Can I reschedule the vehicle loan? – Kapil Mohan

Loan in my father’s name from Cooperative Bank @ 9.75% (Loan of Rs 8 lakh) Rs 4.50 lakh paid so far. Had purchased bus in 2010 August and EMI started from 1st November 2010 (Rs 13,500 for 7 years) but due to some circumstances i was unable to repay the EMI for 1 year (2011-2012). Now paying Rs 20,000 including penal charges. I want to reschedule the vehicle loan. Is it possible?

Answer :
In case you are finding it difficult to repay the loan, you can approach the manager of the branch that has granted the loan to you and try explaining the situation in detail and the reasons for the inability to repay the loan as per the original schedule.
You will need to take your lender into confidence and work out a plan on when and how you intend to start repaying the loan. If you are able to offer a workable proposal to the bank, the bank should be more than willing to come forward to accept your offer as lenders are also not interested in carrying NPA’s in their books.
Please bear in mind that it is not binding on the lender to accept your proposal. It is completely at the lender’s discretion.

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