I have taken a home loan of 9.7 Lakhs from SBI for purchase of a plot in June, 2010 but yet not constructed a house. Further I have also been claiming Income tax excemption on this as I was not aware of all this. Bank never asked to construct a house and never asked any document in this regard. What should I do now, the balance amount to be paid is 6 lakhs Approx and original registration papers are with Bank.
Normally the Bank will ask to construct the House and after verifying the construction only they will release the loan amounts. But in your case I do not know why the Bank people are not keen on this point. Anyway, you have to pay the instalments amount (which covers interest) to the Bank regularly. Otherwise, the due amount will be calculated as compunded interested and you have to pay lot of money at the end. It is better to bargain with the Manager of the Bank and arrive to "one time settlement" and request the Manger to reduce the balance due amount of Rs. 6 lakhs.