Bank Loan for Self Redevelopment of Housing Society

Objective of bank loan is to demolish entire old building presently exists and to construct new building at same place as per prevailing act to get additional FSI.

Eligibility :

Society should be in Mumbai Suburban and registered with Maharashtra Co-operative Society Act. 1960, as well as should be member of bank.
Society should comply with all laws of Maharashtra Govt. in regards to building reconstruction
100% members of society are having unconditional approval for reconstruction with signature and resolution in special general body meeting of society; with acknowledgement showing copy submitted to Registrar of Society.
Loan demand application account statement certified by chartered account as also government auditor report.
All Govt. dues are fully paid and all members have fully paid their maintenance; all statements and records to be submitted.

Documents Required :

Society Registration Certificate
True copy of updated bye-laws of society
Updated and last 3 years financial statement
Resolution regarding loan demanding passed in general body meeting of society.
List of board of members in managing committee of society as well as all members with residential, service / business / native addresses, PAN card, AADHAR card and contact details.
Conveyance deed of society or Index II or Property Card (updated and not more than 3 months old)
Architect certified sanctioned plan of land
Project report with Techno Economic Viability.
Detail budget of construction certified by architect and plan of construction sanctioned by government competent officer.
Copy of commencement certificate
Details of Income Taxes paid by members (Form 16) and salary slips for members who are in service.
Certified copy of agreements between society, as well as construction contractor / project management consultant / legal advisor / chartered accountant and others.
Consent letter in stipulated format of bank of each member of society with required stamp duty.
Solvency certificate from contractor and performance guarantee upto 15% construction cost.
CTS Plan (not more than 3 months old)
7/12 Extract (not more than 3 months old)
Statement of existing carpet area.
Occupation certificate
Existing physical survey of plot
Cess category certificate.

Financial Criteria :

Only those society in “A” & “B” class issued by government auditors on government panel shall be eligible for loan.
The financial participation of society shall be necessary upto 15% of project cost.
The debtor housing society and member should not be defaulter of bank and other creditor societies.
Loan approval limit will be 85% of project cost or as per techno economic viability or maximum of 50 crores.
Those society who have not received any permission like IOD/IOA, as well as those societies who can’t raise 15% amount of total project costs; such societies can raise fund from NBFC / AIF / Financial institute, in such case tripartite agreement shall be executed between society, bank and financial institute providing financial aid.

Security for Loan :

Mortgage of all the assets / properties / building (old / proposed), premises (plot) and all the expenditure required for the same will be incurred by society and required consent from individual members.
Individual and joint indemnity bank of housing society and office bearers regarding bank loan payment.

Loan Distribution:

Loan distribution will be as per the recommendation of architect and project management consultant.
All transaction will be from escrow account in bank for redevelopment related activity and society shall deposit all amount regards to booking, purchase of new flats and other amounts in escrow account.
60% of the amount of flats sold by society shall be diverted to pay loan (interest and principal) and 40% of amount can be used for self redevelopment expenditure. (Ratio shall be finalised on chartered accountant on bank panel)

Bank Fees

Bank processing Fees shall be 1% of sanctioned loan amount (+ additional tax ) shall be charged, out of which 0.25% processing fee after loan approval and 0.75 will charged on prorate basis from the amount received.

Looking for Bank Loan for Self Redevelopment of Housing Society and Initial Private Funding for your project, then do contact us.

Get Free Feasibility Report for Self Redevelopment of Society From Satish Patel

#SelfRedevelopment #BankLoanforSelf Redevelopment #SelfRedevelopmentofHousingSociety #SatishPatelPMC #SatishPatel