- Skillfully developed state that under this scheme, LICHF will lend limited to jobs that are in its approved list
- The 2 loan services and products would benefit just a choose few borrowers as the jobs they cover are restricted
A few loan providers have begun providing mortgages focusing on buyers of under-construction properties. State Bank of Asia introduced the ‘Residential Builder Finance with Buyer Guarantee’ (RBFBG) scheme. The bank will refund the principal loan amount to the borrower, if a developer fails to complete the project under this scheme. LIC Housing Finance (LICHF) has launched ‘Pay whenever You Stay’ scheme, wherein a client does not want to spend the major percentage of the mortgage loan as much as four 12 months (48 months) as he buys an under-construction household.
Explains Gaurav Gupta, CEO, MyLoanCare: “Of late, all the mortgages that finance businesses have actually disbursed are generally for resale properties or ready-to-move-in homes. Loan providers are stepping in to enhance the self- confidence associated with buyers to choose under-construction houses by such loan services and products. However these loans have strings connected. They usually have particular problems that purchasers have to fulfil.”
LIC’S PAY ONCE YOU KEEP
This scheme is a small tweak through the current trend. Often when a debtor takes mortgage for an under-construction property, the mortgage provides moratorium all the way to 3 during which time the borrower only needs to pay the interest component of the loan year. a 3-year moratorium takes under consideration the fact during this period the construction of the home is complete and thus hereafter the debtor will pay interest along with the principal through equated monthly instalments (EMI). If the construction is delayed beyond the moratorium duration, the borrower ultimately ends up having to pay principal because well as interest. Continue reading