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For buying the property, you might have to consider the project financing. With government providing a lot of benefits to the home loan takers, this is the route which is often used for meeting the finance needs of project. Earlier, the customers used to approach the banks individually for ascertaining whether they would get the loan or not for a particular project. This was problematic for the customers since the banks asked for various documents from the builders which the customers had to bring. In order to make the financing route easier for the customers, the banks began to get the project approvals from the different banks and provided them all the documents. The individuals still have to approach the banks with their respective cases and meet the eligibility conditions for availing the loan. So, what are the criteria considered by the banks for providing project approvals to the builders to facilitate financing to the customers? How do banks evaluate whether the project is worth financing or not? 1. All documentation is present or not: Banks needs to know whether all the necessary documents are there with the builder or not. The banks look into the documents of approvals from the concerned authorities and the documents with clear titles. 2. Another important thing to take care is to ascertain the financial viability of the project. Based on reasonable and just criteria, the banks estimate whether the project will be able to meet its obligations on dues towards cost of capital, working capital requirements and will be ensure cash and funds flows through its marketing efforts. 3. Banks would also look into the efficacy of the operations and project time table. This is important since the delays in project result in cost overruns and this might mean that more funds are required by the developer towards project completion. The basic purpose of banks for evaluating the project and offering their facility of financing to the customers of the project is to ease the process of financing for the customers. The customers do not have to move to developers office time and again for getting the details of the project. It is their own set of documents which are required to be presented to the banks. The developers, on their part, try to get as many banks as possible to finance the customers. The focus is mostly on the reputed banks but even the not-so-popular banks might also be involved in this process. The basic objective is to ensure that the customers get loan from one bank or the other, without any problems. In turn, this facilitates the sale of units of the builder. Often, it is found that the projects which do not involve good number of banks, find it difficult to get their sales going. However, there might not be any concessions from the banks in the eligibility requirements and the interest rate charges due to their involvement with a particular project or builder. The customers also make judgments about the reputation of the project like BPTP Park Arena Faridabad and the builder on the basis of how many and which all banks or lending institutions are offering the loans. Kamal bhatt is a writer who frequently writes about neharpaar property like :- Bptp park arena, Bptp park arena faridabad & Bptp park arena price list .
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