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Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

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Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

Last updated: July 4 2011
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  • Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

    I am trying to understand the following:

    If I buy a flat for 1 crore and I need to pay 30 lakhs as cash to the seller. Am I only eligible to get loan on the white portion of the money paid, or is there a way that I cab get the loan based on the total value of the flat purchased by me (in above example 1 crore)

    Fellow Members kindly advice.

    Cheer
    Amit
  • #2

    #2

    Re : Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

    Originally posted by amit001 View Post
    I am trying to understand the following:

    If I buy a flat for 1 crore and I need to pay 30 lakhs as cash to the seller. Am I only eligible to get loan on the white portion of the money paid, or is there a way that I cab get the loan based on the total value of the flat purchased by me (in above example 1 crore)

    Fellow Members kindly advice.

    Cheer
    Amit

    To the best of my knowledge you can only get upto 90% of registry value or white (if I may say)..rest on name of renovation etc you may also get upto 110% or less of white value tops I guess

    Comment

    • #3

      #3

      Re : Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

      You can get a loan based on the market value of the flat. In this case, bank will easily finance around 80 lakhs. However, the bank will pay directly to the buyer and if the buyer wants cash only, he will not accept this. This can work only where the buyer himself is willing to accept all cheque.

      Originally posted by amit001 View Post
      I am trying to understand the following:

      If I buy a flat for 1 crore and I need to pay 30 lakhs as cash to the seller. Am I only eligible to get loan on the white portion of the money paid, or is there a way that I cab get the loan based on the total value of the flat purchased by me (in above example 1 crore)

      Fellow Members kindly advice.

      Cheer
      Amit

      Comment

      • #4

        #4

        Re : Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

        Originally posted by amit001 View Post
        I am trying to understand the following:

        If I buy a flat for 1 crore and I need to pay 30 lakhs as cash to the seller. Am I only eligible to get loan on the white portion of the money paid, or is there a way that I cab get the loan based on the total value of the flat purchased by me (in above example 1 crore)

        Fellow Members kindly advice.

        Cheer
        Amit
        Amit,

        Loan eligibility is based on your income level more than the value of the property. If u are eligible for 1 cr loan u can buy the property of that value. U can exercise the option of reverse mortgage(in case of senior citizen) which is slowly catching up in Mumbai, NCR is not far off.
        MM

        Comment

        • #5

          #5

          Re : Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

          Originally posted by Munish Malhautra View Post
          Amit,

          Loan eligibility is based on your income level more than the value of the property. If u are eligible for 1 cr loan u can buy the property of that value. U can exercise the option of reverse mortgage(in case of senior citizen) which is slowly catching up in Mumbai, NCR is not far off.
          Buddy,

          Looks like you did not even understood the query...

          Loan is a combination of various things:

          1. Value of property (White / registry amount - not total/market value)
          2. Eligibility of individual to pay

          The query is for 1 and you are talking about 2

          Comment

          • #6

            #6

            Re : Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

            Originally posted by amit001 View Post
            I am trying to understand the following:

            If I buy a flat for 1 crore and I need to pay 30 lakhs as cash to the seller. Am I only eligible to get loan on the white portion of the money paid, or is there a way that I cab get the loan based on the total value of the flat purchased by me (in above example 1 crore)

            Fellow Members kindly advice.

            Cheer
            Amit
            Loan is only on the white portion - 100% confirm.

            R

            Comment

            • #7

              #7

              Re : Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

              Originally posted by rajatk View Post
              Buddy,

              Looks like you did not even understood the query...

              Loan is a combination of various things:

              1. Value of property (White / registry amount - not total/market value)
              2. Eligibility of individual to pay

              The query is for 1 and you are talking about 2
              Rajat,
              i did understand the query very well. probably did not put across my answer in totality. what i meant was that more than the black and white component of the property, bank is more concerned about your income, business/job profile.
              Bank will finance the loan based on a lot of factors once the basic criteria which is the eligibility of individual to pay is satisfied. There are many deals which are 100% cheque, the value is much more than circle rate.
              Obviously bank will not pay for cash component.
              MM

              Comment

              • #8

                #8

                Re : Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

                Munish Rajat - so for example The property involve lets say 50 lakhs of white payment (75% of payments) and 30 lakhs as cash compennent in black

                so do i need to get all this 30 lakh black component from my pocket or a portion of this can come under the preview of bank loan

                Loan eligibility shud not be a problem. I already have a pre approved loan for 80 lakh rupees.

                Comment

                • #9

                  #9

                  Re : Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

                  U would get a loan only on the white portion of the deal . The colored money is for u to arrange .
                  Please read IREF rules | FAQ's

                  Comment

                  • #10

                    #10

                    Re : Can I Receive Home Loan Against the Black Money Quotient in Property Purchase?

                    Banks will finance only 80% of your white components which is 56 lakhs out of 70 lakhs. Remaining 14 lakhs plus black component 30 lakhs needs to be arranged by you.

                    However, in future when circle rates increase then you can refinance, after pledging your property, based on valuation of property from a different bank.

                    Comment

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