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Q : Why do banks give loan ?
A : Simple. To earn INTEREST & also to GET BACK PRINCIPLE and pay lower interest to their depositors like you & me....

They don't get money out of thin air..... It is the depositors money they use to give loans.
So they most of the time try to take great care while approving a loan...

So, the first thing they look at is .... (in this order)
1. Repayment capability
2. Past record of repayments
3. Health condition
4. Insurance
5. Habits
6. Dependants / contestants
7. Backing by similar or better guarantor
8. Sufficient value of security / possessions
Lastly
9. Clear title of property under consideration

If 1 to 8 is good....
they will finance..... without any further checking
- Money to buy shares
- Higher studies
- Foreign tours
- Credit cards to use anywhere..... even in PUB's / discos
- and the list goes on....

And many property buyers are thinking if a bank is ready to give loan.... the property is good.
Don't think the banks do the checking free.... they do charge you...
And many verification executives do ask for kickbacks to approve behind your back

Better go to a trusted lawyer or any experienced person in property matters

Dear Mr.Hemanth.

Thanks for the article. Let this article be AN EYE OPENER for the buyers.
The buyers are under the impression that the approval of the project or sanction of bank loan means GOOD TITLES AND VERY GOOD PROPERTY. It is not definitely not so.
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We think that banks helps us in the fulfilling our dreams by providing loans but the real motto of bank is to earn high interest on the loans provided.