Why Bank is Not Giving Loan For DDA Housing Scheme 2017 Registration Amount ?

How To get Loan on DDA Housing Schemes 2017 – DDA Housing scheme 2017 announced by Delhi Development Authority on 30th June for approximately 12,000 flats all over Delhi. The registration amount for the LIG (lower income group) house/flat category booking amount or the registration fee is R 1,00,000 while for the middle income group and high income group flats, the booking amount kept by DDA is Rs 2,00,000. Where the cost of flat is between Rs 7 lacs to Rs 1.40 crore.

Read : DDA Housing Schemes 2017 – Apply Online, Price List and Details

This year none of the banks are promoting the Personal loan on registration amount on DDA flat booking unlike Delhi Development Authority’s (DDA) housing scheme 2014 in which most banks were offering loans to pay the registration amount. 

Benefit to Bank in offering loan to DDA registration Amount

1. There were more than 10 to 15 lacs aplicant for approximately 12000 flats, A big customer base.
2.  Loan Interest rate charged on the registration amount were higher side in lesser time.
3. Loan were some how secured in DDA scheme 2014 where no penalty clause was there in case of withdrawing the filled application.
4. Security of booking amount as loan were paid directly to the DDA and if the person’s name did not appear in the draw of lots, the money was automatically refunded to the bank’s account.
5. if the person’s name did not appear in the draw of lots, the money was automatically refunded to the bank’s account hence secured loan.

Read : DDA Housing Scheme 2017 – Pricelist of Flats, Location

Why Bank is not providing Loan on DDA Housing scheme registration Amount this year ?

There are many reason due to which bank is not offering any loan on DDA registration amount. They are :

1. In order to check the market speculation and seriousness of applicant DDA has proposed the penal measures like If a prospective buyer surrenders his application before the draw date, no money will be deducted from his or her registration fee. If a buyer does so after the draw but before the issue of a demand letter, 25% of the registration fee will be forfeited. 
2. In such cases bank fears that If they give loans to the buyers and they decide to surrender the money, how will they recover the amount?

Due to such concern banks are hesitating in processing the Loan for registration amount of DDA housing scheme 2017.

Banks has kept their option open for Personal Loan to salary/ pension individual with security of their account. If applicant name does not appear in the draw of lots, the registration fee will be refunded otherwise you will be required to pay the remaining amount of the cost of the house incase his/her name appeared in the draw list.

Check EMI on Personal Loan : Here

Due to this concern it is believed that forfeiture clause was initiated to stop non-serious buyers and brokers so it is good for the prospective buyer to get the flats in DDA housing scheme 2017.