How does bank handle if registration cost is less than actual home price

Hi Anil,
Question is about house loan , lets say site value is 50L and i will be having 10L for down payment and owner informed that according to government rate(25L) pay the cash from bank and remaining amount(25L) pay in cash(cheque), now i am short of 15 lakhs , if i am eligible for 80% loan from bank , now does bank will hand over to me remaining loan amount as cheque or DD.How is the process and what should i do?

Hi Jaya Pratap,

  1. Bank will only consider the amount that you do the site registry for. For example, if you only show government rate i.e. 25L on registry papers, they will ONLY give 80% of 15 lakh as loan. It would be 20 Lakh.
  2. You can use this 20 Lakh as a payment in Cheque.
  3. Rest 30 Lakh has to be arranged from your own pocket.
  4. Bank will never pay your the cash or cheque in your OWN name. It will be paid directly to the seller (on his name) that’s written on registry papers by CHEQUE ONLY. Also, bank will give this cheque on the day of registry completion on your name.