Home Loan Queries

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Deleted member 7160

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
 
we need toocool here!
 
Yeh, I was hoping for him to reply! Hope he hasnt slept yet.
 
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
 
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.
 

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???
 
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.
 
the way i see it ..............will have to see the spedd of the builder in making project, if u are satisfied with everything , then ok, ask the builder to give exact interest that is payable by you to bank IN WRITTEN AGREEMENT .if you think there may be delay in project (and 90 % projects are delayed , mind you) then understand this that bulider will actually need this payment even after a extended period , in that case there may be good case of taking money and depositing it in some very flexible option which can be redeemed very quickly( in bank instrument only)because bulider may not want to give this extra interest for extended period of time (even for his own fault in delay and all)
 
For option 2 -- What are the options to invest 6.5L for 45 days other than FD's? Any suggestions from your side?

because bulider may not want to give this extra interest for extended period of time (even for his own fault in delay and all)

The payment schedule is mentioned in my Sale Agreement, so dont you think that might come to my savior?
 
i dont think u have any major option for this less time span, which mind u is in days upto 3 months i assume ,even if work is delayed upto 3 months.tell me 1st...........what do u think about this builder , is he good or average or what???
 
Hmmm.. Thanks for your suggestions. Also another question -- The Builder has agreed to pay me interest from the day the bank has released the amount to him. How do I calculate the interest? Any formula?

tell me 1st...........what do u think about this builder , is he good or average or what???

He seems to be pretty good guy, In fact he is the first educated builder I have ever seen and this is his 2nd project. In the past, when SBI was delaying the process of approving my loan (SBI took roughly 2 months to process my loan), The builder never asked me to pay from my side, But told me twice to take loan from some other bank, which I denied and he agreed to it.

But then, These builders -- You cant trust them.
 
meri man lo bhai................piase lelo ..............the way i see things, 95% builders dont keep promises , they will make a fool out of you.at the time of giving interest ( it will be a lucky one for u if he gives interest easily ) pata chala ki option tha money lene ka and you lost the interest which you could earn in fd .i dont know the formula man............just make an agreement of exact amount paid to u (which is being paid by u to bank) . that is if u take an option to leave money with himask the bank bro......what is the calculation of the bank interest and present it to the bulilder, its the best way. bank will not deny you this little info , there is no reason for them to hide anythin, no??
 

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