I am close to buying a plot in Bangalore and need a composite loan (plot + house construction). Visited SBI Home loan section and met Assistant manager in Koramangala Branch. Based from the friends experiences I was under the following impression.
1. House construction should start within 2 years from date of property registration. SBI answer is, House construction should end by 18 months of property registration!!!
2. Bank will come and valuate the plot and the composite loan ceiling is based on that. SBI answer is, valuation will be done but if property is intended to be registered at a value below the valuated value by Bank, then loan will be given against registered value!!!
3. At all points of releasing money, 80 – 20 % ratio (80% from bank and 20% from my side) should hold good.
4. It will take 4 to 6 weeks to process the loan from the date property documents are given.
At the end of our conversation, I am not convinced and the bank manager was making calls to central branch in between when we cross questioned him.
Could you throw some light on point 1 and 2 based on your experience in SBI and other banks?