Hi, We are plannign to go for a flat in Chennai and the loan amount is 40 lacs. The builder is Purvankara. The posession date is May 2010 i,e 2 years from now.
We are looking at various options in taking the loan Tranche EMI Vs ADF. In case of Full dispursement (ADF), the buider has promised a discount of around 8% which comes to around 4 lacs. Looking at the discount we feel ADF is a good option. (coz the loan amount is already very huge)
But we are not very sure what might be the problems that can come up incase of ADF ?
Can any one try to answer the following questions:
1. For example let us assume a worst case situation that the buider stops construction some time in the middle. What would happen to us as we have already dispursed the full amount ?
2. Is there any home insurance policy that we can avail and which can take care of under construction property and incase of some builder problems provide us the sum insured?
3. Are there any legal bindings behind the ADF option ?
4. Should we get anything in writing from the builder before we pay him the complete amount ?
It would be really helpful if any one of you could answer these questions as we are going to ake the loan in a week and we have to decide ont he best way.
