Approved Project Finance
How it matters to you as a buyer
What is Approved Project Finance (APF) ?
APF is issued by lenders (Banks / NBFCs) to real estate projects indicating that they are comfortable to sanction home loans for purchase of units in the project. Lenders typically do due diligence of title, approvals, technical feasibility, financial viability etc. of the project on request of the builder to issue APF. Final approval of the home loan is subject to eligibility of the buyer and at discretion of the lender.
Why it is positive for you as a buyer even if you are not availing home loan:
A project with APF will help in faster processing of your home loan since the lender has already completed project level and checks
The project has passed the evaluation of a credible third party who and you can draw comfort from the same
Multiple APFs for a project means the project has passed multiple evaluations giving lesser scope for error.
What it should not be misunderstood as:
While a project having APFs is positive for a buyer, it is not a fail safe method to ensure that the builder will deliver the project as per your expectations. Always keep the following points in mind:
APF should not be taken as the lender’s guarantee of project completion without delays
The lender is not responsible for quality of construction or fulfillment of builder’s obligations
The lender is not responsible for title of the project or your unit
The lender is also a party in the larger scheme of things where its money is at risk and highly dependent on the successful completion of the project. So, you may fairly assume that they would have done a credible due diligence of the project. It’s a good comfort, but not a guarantee.
Can a project have multiple APFs?
Yes, a project can have as many APFs as there are lenders issuing APFs. Having more APFs is a good thing since it has passed the evaluation of multiple lenders and you have multiple easy options to choose your home loan from
Can I get a home loan even if a project does not have APF?
Yes. While APF helps in smoother processing of home loans, you can always apply for a home loan with any interested lender. But, this process generally consumes more time since the lender will do the necessary project level evaluations post your application and a good level of coordination is required between you, the lender, and the builder to complete the process.
Who are the key players providing APF in Hyderabad?
There are many institutes that provide APF in Hyderabad. Some of them are State Bank of India, Union Bank of India, Punjab National Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, AU Small Finance Bank, Bajaj Housing Finance, Aditya Birla Housing Finance, Capri Global, and IIFL Finance.