What is the process of disbursement in case of a home loan for purchase of an under-construction property

Question: What is the process of disbursement in case of a home loan for purchase of an under-construction property?

Answer(s)

Raju Kanumuri: When you take a home loan to buy real estate in an under-construction property, we will disburse payments towards its purchase in installments, based on our assessment of the progress of construction, but not necessarily as per the developer’s agreement. We advise you in your own interest to enter into an agreement with the developer wherein your payments are linked to the construction work and not pre-defined on a time-based schedule.

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