HYDERABAD: In light of Hyderabad Disaster Response and Asset Monitoring and Protection Agency (HYDRAA) demolishing buildings situated on lake full tank level (FTL) and buffer zones, banks are now exercising caution in their house loan approval processes.
According to sources, many banks have now instructed their loan sanctioning teams to be extra vigilant even when all necessary documentation has been approved by relevant authorities such as the Greater Hyderabad Municipal Corporation (GHMC), Hyderabad Metropolitan Development Authority (HMDA) and RERA.
“During our review meetings, we were told by senior officials to strictly follow the proposed construction plans, not even allowing the regular 10% deviation. Previously, banks would consider a 10% deviation for loan approvals, especially for properties near water bodies,” said an official of a nationalised bank, who wished to remain anonymous.
Officials have also been told to conduct field visits near water bodies, a shift from earlier practice of relying solely on engineers and field officers for assessments. A source indicated that officials may also need to consult with GHMC and other civic authorities regarding permissions granted to address uncertainties.
While banks are yet to issue official revised guidelines for loan sanctioning, the increased caution is likely to make the process of obtaining house loans more structured than in the past, necessitating careful consideration when purchasing properties. For instance, a banker said that one property in Secunderabad was refused registration shortly after being sold due to its proximity to the full tank level (FTL).
Furthermore, banks are having difficulty retrieving outstanding loan amounts for structures demolished by HYDRAA. According to sources, while no particular restrictions exist, legal action may be required to attach the borrower’s other properties.
HYDRAA officials are also considering meeting banks to give their inputs about loan approvals.
Source Homevior.in
