If a builder is pre-approved by a couple of leading banks, it does ensure a certain minimum standard. Also, since these banks would give loans to quite a few consumers who buy property in that project, they will be affected by any delay in the construction (borrowers tend to delay payments to banks when construction is delayed). Large banks have better ability to put pressure on the builder and hence, although not legally a safeguard, in practice, it is quite a good indicator of project quality.

Most home loan agreements have a 'cross-default' clause, which enables the bank to declare you a defaulter for all loans from them if you are in default on any relationship with them. This clause is a standard clause and allows the bank to recover all dues by selling any security that they might hold against any of the obligations to them. You should take up this issue with the senior management of the concerned bank and solve it amicably.

Based on this certificate, you can negotiate the sale of your house with potential purchasers. If the new purchaser takes the loan from your existing bank, the process is far simpler than if he were to take the loan from another bank, which may need the title deeds in its hands before it agrees to release payment.

The agreement sets a time limit for the balance payment (usually 15 to 30 days) to be made and contains a clause that the agreement would be null and void in case of a failure of payment within the stipulated time. This agreement is registered and the disbursement is taken from the Bank directly in the name of the seller after that.

Yet it is necessary to put in some money towards the property before you avail of a part disbursement. You also need to produce adequate evidence that you have got the source of funds (for e.g., a sanction letter in case of a loan from the PF office).

The advantage of this product is that it allows you to use both your temporary and permanent cash surpluses to reduce your interest liability on your home loan and at the same time gives you the flexibility of withdrawing the surpluses for other uses as and when you may require. These loans are normally priced higher than regular home loans. Overseas, these kind of loans are popularly referred to as "offset loans" as the balance is the linked account offsets the home loan amount.

Some examples are co-operative housing societies who legally own the property but the members have the right to occupy specific premises and to transfer such rights. Another case could be where the land is owned by a statutory development authority such as DDA and who transfer leasehold rights to the borrower while retaining the legal ownership of the land. The NOC certificate covers five main clauses: Property being free from any encumbrances, property being free and marketable, permission to mortgage the property, acceptance of the banks charge on the property, and the borrower not being allowed to transfer the property to anyone else without the consent of the Bank.

A vast segment of India's population exists on the margins of India's financial systems. Whilst the per-capita savings of this class may not be very high their sheer number means that taken together their savings are of a considerable amount. If their entry in the formal financial sector is made easier these savings can be channelised for the formal economy. Also savings cum risk products that are their primary need can be structured for them once they are part of the formal banking system.

The earlier rush to invest in property has slowed down. Even the builders are looking for buyers who are looking for a home to live in than speculative investments. "This is a good time to invest, as any other time because the property prices are likely to remain stable. It also depends on the location of the area of investment. Prime properties and areas like Navi Mumbai offer good investment opportunities. Investment from speculation point of view is not recommended due to high interest rates," says Mantri.

Man knows little of what fate has in store for him. When you take a home loan, it is on the basis and assumption of continuing income. We run into all kinds of risks in our daily life. Accidents and health issues like heart attacks, stroke, paralysis, kidney failure and other physically crippling ailments can cause loss of income or in some cases, even your life. Home loan is a fairly long-term liability. This is why when you take a home loan, it is advisable to take a life insurance and critical illness policy. Life insurance policies provide monetary benefit in case of an unfortunate incident like death and ensure that your family members inherit your home not your home loan. Critical illness policy will take care of the home loan liability if your income gets interrupted due to unforeseen, unavoidable circumstances which such conditions may create. That will be one less thing for you to worry about while you are anyway under severe stress. Best of all, most banks will be happy to finance the one-time premium payable for both policies, enabling you to get this protection at a small addition to your regular premium.