Bank interest rates on house loan for b khatha property

[avipnv]

Hi,

We are planning to construct new house and for that we are planning to take home loan . Ours is a b khatha property. Can anybody tell us the interest rates for home loan for the b khatha property in any bank?

Thanks.

Hello,

Its disheartening to say, no Private/National banks will provide Loan for B-khata.
But there is a ray of hope as I was on the same boat, to have taken the loan on B-khata and the construction is in full swing.
The process is pains taking and you need to shell some extra money.

Points to remember, which i feel might bring you some relief.
- Does your area, have enough houses already built?
- Does it have water(corp/cauvery) and sanitory lines running?
- Contact of Land Lord(Layout Landlord)?
- DC Converted

My case was similar, and mine was not even DC converted.

I can help you with Direct agents with Canfin(http://www.canfinhomes.com/). The process needs to go throu an agent, you cannot directly
approach the Bank as they will not give loan to B khata.
This will involve agent commission+ extra charges for some documents.

DHFL will also do it, but they made me run around from table to table, very unprofessional, and finally i was not sure of the process.
So did not continue.

Pl note am not an agent, i can help you with contacts and tips, as i have experienced the pain here and this might
help others, get through smooth and realize their dream of getting a Construction Loan for B-khata

PM me if you would like to have a chat with me.

Thanks
Avinash

[Pratap]

Hi,

As i come across both Canfin and DHFL home interest rates are high for B-Khata properties. PM your contact details if you interested I will share with my agent who is associated with Gruhfinance (Subsidiary of HDFC) which offers attractive interest rates.

Pratap

[girishshk]

Updated ROI for B-Katha Sites.

CanFin Housing Loan - 10.95% (hesaragatta road)
Repco Housing -11.35% (hesaragatta road)
For Joint loans with Spouse if the property is also Jointly holded, then you may get discount under various women schemes.
You can contact any branch for more details.
http://www.canfinhomes.com/canfinhomes. ... e=branches
http://www.repcohome.com/karnataka_map.php

The rate depends on the risk calculation and the above ROI is for salaried class.

[rkodal]

Rate of interest in Canfin, Kengeri branch...11.50%.

[Naveenkpt]

Loan for B katha property is based on the income, repayment capacity and additional security by cooperative banks and private banks. hence they charge 1-2% more than nationalized banks.

[Praveenb]

Hi All,

My friend is looking for home loan from canfin.
Can anyone provide contact from canfin please? It's urgent. Thanks!!

Thanks & Regards,
Praveen

[msn1270]

Hi All

Recently I saw a banner in front of HDFC Bank saying, they give Home Loan for the selected B-Khata properties.

You can check with them to know more about their meaning of 'Selected B-Khata'.

[avipnv]

Hi,
This is a great info, can you let me know, which branch.

Thanks
Avinash

Hi All

Recently I saw a banner in front of HDFC Bank saying, they give Home Loan for the selected B-Khata properties.

You can check with them to know more about their meaning of 'Selected B-Khata'.

[girishshk]

I see many people check with agents etc for going for bank loan for B-katha.
That is actually not needed, you can directly go and meet the branch manager with title documents and verify legal and then get a plan approved.
It may cost any thing between 20 to 40 K depending on the land size for the processing of all documents including the mortgage registration.
Note: Banks seems to show interest on home loan buyers where risk is lower(legal & financial).
i actually went in personal for all these work and below is my break up for the expenditures for my 34x28 site.

B-Katha and Tax Paid to BBMP uptodate 12000 (3000 for b-katha includes bribe!!)
Building Plan & Approval to BBMP 5000
Notary and Document charges to Lawyer 2000
Loan Amount Processing & Others Repco 20000
DD-Sub-Reg 4500
Mortage Registration Sub-reg Peenya 2000

[bdalogin]

This is my detailed explanation about B Khata properties and the bank loans regarding it.

Summary: Things are slowly changing and people are understanding that, there is no risk in buying a B Khata property and lot of banks are started giving site/composite loans. personally I can say PNB/HDFC/AXIS/LIC and some SBI Branches have started giving. (With just a 0.1 % difference in interest rate as compared to A khata (I will explain why the difference is) and no commission nothing, you can directly get the loans)

Note: Not all A khata sites are safe to buy. It can be still a non DC converted survey no/part of SWD/part of some other govt land etc....

So it is all boils down to below points.

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Nevertheless to say, you need to check below for any property (whether it is A or B Khata)

1. Please give the papers to Bank panel lawyers and confirm the ownership/litigation etc etc

2. Cross verify the land records across different organizations like BBMP/BDA/Bhoomi online website to make sure it is DC converted/Not as part of SWD/Any road expansion plan (check it in city master plan map/land use maps) and talk to local people.

Though above 2 points are clear, I would not suggest anyone to buy near the below places (at least not in 500m range, best is 1km away)

Not in the vicinity of

i)lake/graveyard/any govt land like school/civic amenity places like garden/railway tracks/major village roads/any fenced big open land/waste management,dumping yard/Govt Bore-well points/land is not for specific caste/religion/society / Green belt etc etc.....

And better to be in the vicinity of

Houses already constructed (at least 1 year old) in that place with basic civic amenities like road/water/under ground drainage/street lights are in place.

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Some background about B Khata:

I am also not in favor of B Khata property initially. But after being in Bangalore for more than 12yrs and understood how BBMP has formed. I can surely say that "B khata" or "A Khata" or just a paper terms. (I have explained below why Banks were not easily funding it earlier).


As compared to other cities in India, Bangalore is little young in terms of its expansion. Its mainly because of IT. BBMP is just a 9yrs old organization and it needs some time to settle down. Apart from the old areas of Bangalore , almost 90% of new localities in Bangalore (I am not talking about Apartments, I will explain it later) are B Khata. Does it mean they will be demolished, no way at all there are lot of politics involved in it.

BBMP just needs some time to observe this sudden mammoth growth of the city. (It is actually the political parties deliberately wants to delay the A khata issuing for vote bank reasons nothing else)

If the above points are met related to land, I would say Khata has no value and you can buy the property. it is just a piece of paper and a mindset of people and as I have mentioned earlier Banks have started giving loans.

Bank loans:

Why banks were not giving loans earlier:

Since because of the sudden increase in city limit, there are plenty of cases of illegal layouts/sites and hence banks were not giving it earlier. Now they have realized the above factors which i have mentioned and started giving loans.

Why the interest rate is little high:
Just because the Khata is from "Form B" bank is just taking advantage to increase the ROI by 0.1% (If the locality of the property and customer profile is good we bargain to same rate as A khata)

Why banks are giving B Khata loans through their DSA/DST rather than directly:
It is just a matter of their prestige that's it. If they directly give, then people does not value it and think that it as yet another private home financial institutions.

How apartments are getting A khata:

In a same region, you will see mix of A and B Khata properties, actually it is not possible (either whole layout can be A or B).

It is possible only because, the land owner would have heavily bribed the BBMP guy to get A khata (which is fine and no issues about it). That is how for a large land parcel like 1 acre or bigger ones, gets A Khata and constructs Apartments and all the banks are giving loans.

Note: If an apartment has been constructed with deviations (less open space/extra floors or structures/no STP (for a newly constructed bigger apartments) etc, then it cannot get OC from BBMP (even though the land is A Khata) and it will be termed as B Khata apartment. But still you will be able to get bank loans as the land is A khata.

To an extent Banks/Govt are encouraging loans for apartments (which is what many people are liking because of the easy life style) and Govt can get rid of lot of individual house issues like drinking water provisions/security for the place /street lights/roads for the layout/etc...