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Many people are now opting to buy under-construction flats, as they can be purchased at a lesser price as compared to ready-move-in flats. Usually under-construction properties are priced at least 20% less than completed projects and are incorporated with many latest features and amenities. Another benefit is that if you are taking a home loan in India, you can enjoy tax payment benefits up to a certain amount.


Owing to all these benefits, a large number of home buyers are now becoming more tempted to buy apartments which are undergoing construction. So are you looking for a home loan to buy an under-construction flat?


Here are some important facts that will assist you to make an informed decision:


RERA registration number : This is applicable for projects where the land to be developed is 500 sq.m or more, and the number of apartments is 8 or more inclusive of all phases. So always choose to buy an apartment with a valid RERA registration number to avoid frauds and other hassles.


Verify documents : It is highly crucial to verify all the legal documents and permits related to the chosen apartment. For every new project, a builder must possess a commencement certificate (CC) from the authorities to initiate the construction process. Other documents like NOCs, legal permits should also be verified in advance before buying a property. This will ensure that you are free from legal and financial hassles in future.


Price negotiation : The first and foremost step after you have zeroed in on a good property is to do a price negotiation with the builder. You must be well aware of the existing real estate market prices and analyse the worth of the chosen apartment or flat. You can do a comparison with other nearby projects to understand whether the property is aptly priced.


Pre-approved loans : As a buyer, it is ideal to choose a builder who offers pre approved loans from major banks to make the home loan process easier and risk-free. Most of the reputed builders in India will be registered with major nationalized banks and financial lending authorities. You can also avail discounts on interest rates if you are taking a pre-approved home loan.


Flexible Payment  : One of the major benefits of buying an under-construction property with a home loan is that you need to pay only the pre-EMI on the disbursed loan amount and not the entire loan amount. This makes it easy for buyers to invest in a new home as the monthly financial burden is less. In case of any significant project delay, the payments can be put on hold to avoid losses.


Builder’s reputation : Always verify the builder’s credentials before making the purchase plunge. Choosing a reliable and experienced builder will ensure timely delivery of the project and good construction quality. Since buying a home is one of the biggest investments that you will make, you should be extra careful not to get duped by false agreements and promises by builders.


We hope this article about home loans for under-construction flats was helpful and informative.