Home Loan Conundrum!

[Finchamp!]

2 years back I purchased a construction-linked flat in Noida for which I availed a loan from Kotak Bank. In said loan, Kotak made me, my wife and my firm (an LLP) a co-borrower, Now 2 years later, I have discontinued business in the LLP and have instead shifted business to a proprietorship. I now wish to close the LLP, but I am not able to do the same because a liability, in the form of this loan, reflects in the LLP's name. I spoke to Kotak about removing my LLP as a co-borrower, or substituting it with my proprietorship, but they said nothing can be done.

I thought of porting this loan to a different bank, but all banks said that this cannot be done as my flat has not yet been registered. Apparently, once a loan is given to a construction-linked flat, it cannot be ported until the flat is registered. This is ironical, as my flat, though not registered, has been delivered; in fact, I have been living in it for the past one month.

Is anyone facing a similar difficulty? Please guide as to how to come out of this difficulty? My CIBIL score is excellent and I have all papers needed for loan sanctioning, except, of course, registry papers.

 

[Yugi]

All banks need your house papers to give you a home loan. They take it as collateral. If you are living in it, then why not register it?

 

[KGSIPO]

Living without registration? How builder has allowing this and the builder might not have obtained completion certificate.

 

[Finchamp!]

There is a provision under the UP RERA Act that allows deemed possession. We have handed over our flat subject to said provision.