Home Loan Queries

maniaco

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[OP]
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Jun 6, 2008
5,699
190
Bengaluru
Guys, Need your suggestions in 1 of the queries that I have with Home loan and this is kind of urgent.I have purchased an apartment which is under construction and will be ready to move in by March 2013. The total cost of the flat is 30L out of which I have paid 8.5L as down payment and 21.5L as loan from SBI.Now as per my sale agreement with the builder, He needs money whenever the work is done. For example, If the brickwork is done he needs to get 20% of the payment and so on .... Now here is the problem, SBI has already released approx 20L to the builder out of 21.5L last week, When I asked the bank how can they release so much amount when even the flooring work is not done, they mentioned that Builder asked for the cash and we gave him and for more details I need to talk to the builder. (The rule is the bank needs to inspect the property and they should release the amount only once the work is done, which was wrong by SBI).When I spoke to the builder, He apologized and told me that whatever extra they have taken from the SBI he can refund me and I should pay him whenever the work is done. Or the other option he is giving me is -- He will pay me the interest of 7.75% as its the interest rate in FD in most banks for 45 days.(Considering it might take about 45 days to the flooring work to be completed).I want to know, What are the options do you guys feel is right? Or I should take the cash from the builder and put it somewhere else for 45 days?My current Home loan rate is 10.25% floating! Thanks for your help guys
 

maniaco

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[OP]
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Jun 6, 2008
5,699
190
Bengaluru
Yeh, I was hoping for him to reply! Hope he hasnt slept yet.
 


Toocool

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Apr 2, 2007
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reading 1styou should ask the builder to give exact rate of return as being paid by you to bank............its the fault of the builder and bank, infact involve bank in this too ,why should u suffer???and i think builder will accept that too.but take that in writing..........dont trust verbally
 

maniaco

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Jun 6, 2008
5,699
190
Bengaluru
The bank is not ready to get indulge in this matter, and for answering this questions they made me wait for 1 Hr today! So now when I want to involve the, I dont know how much time they will keep me waiting. The problem is, There Home loan processing center is somewhere else in the city and the branch which I had taken my loan from is in the other part of the city.After calculations, The exact amount which the builder has to refund me 6,55,000/-Yeh, Builder paying me 10.25% interest on the excess amount seems to be fair, Because thats the interest am paying to the bank.
 


Toocool

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Apr 2, 2007
5,125
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what if he delayes work and he doesnt need money after 45 days................if project is delayed he may need it after 90 days also???
 

maniaco

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[OP]
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Jun 6, 2008
5,699
190
Bengaluru
Yes, Thats the risk -- But the way the construction is being done right now, I don't think there might be delay. But then no one knows about the future.