Purchase of new house and bank loan
Hello sir, I am going to purchase a newly constructed house which is 74 sq yards and built up area 530 square feet. As per the builder he is not having the building permission and proceedings because it is below 100 square yards. When I enquired in the GHMC they are also saying the same. I would like to take the home loan on this house. Banker are saying without building plan and proceeding we can provide. Please let me know shall this building get permission and building plan or the bank which provide without permission and proceedings. I would like to inform that I am eligible of getting homeloan up to 25 lakhs. Please let me know.
If the bank is ready to provide loan despite unavailaibility of the building permission then you would not, in most probability, face any complications in terms of the loan. This is beacuse banks provide loan only after complete investigation of the documents and subsequent sanctioning of the same. Hence, if the bank is lenient and is ready to extend the loan amount then the need for a buliding permission may be ignored for the purpose of loan.
However, building permission is an important document for establishing the legaility of a particular construction. A building permission is denied only in cases where the contruction is illegal in natue. Hence, even if you are provided with the loan, if the building is illegal in nature and is without a valid building permission then you may face several legal complications in the future, like the Municipality would have the right to direct demolishment of the building.
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