Documents required to get loans for property under construction

March 7, 2017by yograj rathod0
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Need a loan for a property that is under construction? Confused about what documents would be required so that loan processing becomes swift and smooth!! Most of the times the project undertaken by a builder is already pre-approved by one or many of the banks. So, if you identify such bank/banks then it would be very easy to avail loans on such properties because, most of the documents (given below) would be already available with them.

Checkout the list of documents that would be required for such loans:-

Apart from your KYC and Income Proof Documents, following documents are needed:

If the Property is Registered

  • No Objection Certificate (NOC) from the builder on their letter head
  • Letter from builder / architect indicating the latest progress of construction.
  • Sale and Construction agreements with the builder duly stamped and registered.
  • Sale deed with a clause that possession will be handed within specific time period (if any)
  • Building plan sanctioned by statutory authority
  • Commencement certificate by Municipal Corporation
  • Approved layout plan
  • Land Title Certificate
  • NOC from various Department and Authorities (Fire Department, Pollution Boards, etc.)
  • 7/12 extracts
  • EC (Encumbrance Certificate) up to date for latest 13 years or from the date of registration till dateOwn Contribution Amount Proof

If the Property Registration is Pending

  • True copy of agreement with builder
  • Original ‘money receipt’ issued by Sub-Registrar
  • Acknowledged copy on authority letter, addressed by applicant to Sub-Registrar
  • Copy of the letter acknowledged by the builder
  • Land Title Certificate
  • NOC from various Department and Authorities (Fire Department, Pollution Boards, etc.)
  • 7/12 extracts
  • Building plan sanctioned by statutory authority
  • Approved layout plan
  • EC (Encumbrance Certificate) up to date for latest 13 years or from the date of registration till date
  • Commencement certificate by Municipal Corporation Own Contribution Amount Proof.

Note: – The above lists of documents are combined requirements of both investors, before investing in under construction property and bankers, to disburse loans to customers seeking a loan for under construction property. Also, these lists for respective categories are not exhaustive and may vary from bank to bank and case to case.

Most of the loans get rejected due to lack of documentation and this becomes a major source of disappointment among the fund seekers, and ultimately they end up borrowing at a much higher cost. Hence, before applying for any kind of loan, study about what all documents would be required for that particular type of loan and keep them ready. Give no chance to the banker to reject your loan and fulfill your dreams without any financial hindrances.


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