Building your dream house

    Part IV

 Bank Loan

Constructing  a house is not an easy task as buying a motor vehicle or something like that. But many people think it like that and such people go on searching for a contractor who quotes the lowest rate for constructing the house. This is not the right thing to do. First of all you should have a clear idea about the house that you are going to construct. You should also study and understand what are the processes involved in constructing a house and what are the materials used and at what time each item of work is executes and what is the normal rate prevailing in your area. Knowledge about all these matters can be collected by watching the construction work that is taking place in your neighbourhood.

 When you start searching for a contractor you have keep in mind that the contractor you are searching should be a qualified and experience person who will be able to do his work as per the specifications of the architect.  He should also be having knowledge about the latest trends in this field as changes are taking place in house construction area very fast. If you have sufficient cash it will be very good and in that case you need not go for bank loan.

But even if you think that the money that you are possessing now will be enough for constructing the house, it is advisable that you go for bank loan, as the estimated amount, it is seen that increases many time during the course of construction of the house. Another thing is that every bank is giving house construction loans for long term periods like 20 years and so the emi amount will be less. Even though it may seem a little difficult in the beginning, as years turn, the value of money reduces and the amount that you are paying will be a burden for you. Further the monthly installment amount reduces as years roll by.

Another important thing is rate of interest. There may be a slight difference in the rate of interest charged by different banks. This difference usually ranges form 025 % t 1 %. This variation is not very important and there is no meaning in keeping the construction work pending for finding out a better bank with a lesser rate. It will be enough if you approach the bank where you are already having an account or a bank which is situated near to your house.

Documents needed for applying for bank loans

Even though the procedure and documents needed may be different from bank to bank, the documents listed out here are the documents needed by all most all banks. If you have property in your bank it is the duty of a bank to give bank loan for your house construction.

Some banks require your title deed to be pledged to the bank and some other banks also insist other persons with employment as sureties for your bank. However, these are not very difficult to obtain and hence you need not loss heart for this reason

1. The original deed of the property which specifies you as the absolute owner of the land.

2. Encumbrance certificate for the last 15 years obtained from the sub Treasury where your property was registered in your name. This certificate will show the details of liabilities, if any, the property is subjected to.

3. Land tax receipt in original for the current financial year in your name issued from the village where the property is included.

4. Possession and non attachment certificate issued by the concerned  village officer.

5.Loaction sketch of the property issued by the village officer. This is needed for the bank authorities to come and find out your property when they come for valuation of the property.

6. Building permit issued form the concerned local self government office.

7. Originals of all land deeds pertaining to the plot for the last 15 years.

8. Building plan approved by the panchayath or local body as the case may be.

9.Original estimate of the building

10. If there is any other building on it the original of the building tax receipt of the building for the current financial year.

 If all these documents are available banks will give about 80 % of the total estimated cost and this amount can be availed within a period of one month.

If you find it difficult or feel reluctant to approach the different offices to get the above mentioned documents, don’t  worry. We are ready to help you. As we are very familiar with this matter we can arrange all the certificate and bank loans for your house projects within a period two months at the maximum. One month or less than that may be required for obtaining all the documents such as plan, estimate, encumbrance certificate building permit etc. and an equal amount of time will be required for getting the bank loan also. In short, if you entrust us your house building project, we will do everything for you, right from the preparation of plan and estimate to obtaining loan and constructing your house.

For further details and enquiries you can call me at 9605933311