I held a meeting today with many banks including SBI, PNB, HDFC, Axis, ICICI, Union Bank etc to solve a problem flagged by many allottees of the 75 plots in Action Area 2 that were given through lottery. The problem was that banks usually give home loans against registered deeds but here the deed can't be given unless the payment is done : so what happens in the interim period? While the Hidco scheme allows for installment payments, there is a discount of 4% for 'down payment' i.e. full payment in one installment.
It was finally agreed that banks would give loan on the basis of the allotment letter and Hidco would give, on request, a 'comfort letter' confirming the identity of the allottee and other conditions.
This will hopefully solve the problems of 'land loan' rather than 'home loans'.
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