Homebuyers don’t need mortgage permission for home loans in Noida anymore

Noida authority CEO Amit Mohan Prasad has asked the group housing department to do away with the rule to obtain mortgage permission for home loans

The Noida authority on Thursday changed a 40-year-old rule to provide relief to flat buyers. Homebuyers will no longer need to obtain mortgage permission (MP) for a home loan.

As per the earlier rule, a homebuyer had to waste many days and even allegedly pay a bribe to officials to get the mortgage permission and obtain a home loan. The practice has now been done away with. (Virendra Singh Gosain/HTFILE PHOTO)

As per earlier rule, a homebuyer had to waste many days and even allegedly pay bribe to babus to get MP, which is mandatory for a home loan. A buyer also had to undergo alleged harassment at the authority office in Sector 6 to get the mortgage permission certificate.

As per the prevalent practice, a homebuyer had to submit the MP certificate to the respective banks.

The Noida authority chief executive officer Amit Mohan Prasad has directed the group housing department to introduce changes in rules.

“Now, private or government banks providing a home loan to a homebuyer will not ask for mortgage permission because we have made changes in our lease-deed conditions. Since we have removed the condition that makes mortgage permission mandatory, no bank will ask for this document which was earlier necessary for obtaining a home loan,” said Santosh Kumar, officer on special duty at the Noida authority.

Once a homebuyer purchases a flat in a group housing complex, he gets the registry of the property executed by the stamp and registration department. It takes anywhere between 15 and 30 days or even more to get a mortgage permission.

“As per rules, a homebuyer gets the sub-lease of the property done and it involves three parties — buyer, builder and the Noida authority. And then he applies for a home loan. However, banks demandmortgage permission from the Noida authority. Now, we are relieved that the authority has done away with mortgage permission,” said Kumar.

Most of the properties including flat, shop or plot are on lease-hold basis in Noida. It means the property is leased out to a purchaser for a period of 99 years unlike the freehold property, which stays in the owner’s name for a lifetime, officials said.

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However, builders and plot owners will have to obtain mortgage permission to get home loan, officials added.

“We have relaxed norms of lease-deed conditions only for flat buyers as they face needless problems. Builders and plot owners will have to obtain mortgage permission as usual because they take huge amount of loans from a bank,” said Kumar.