Shubhangi (Sr Research Executive) 24 April 2012

Redevelopment issue

Hello Forum members,

Sub- Redevelopment of building- But we have taken educational loan- Need to know way out

The members of our society want our 20 year old building to go for redevelopment. They are in talks with a builder and our general body meetings have taken around more than 15 rounds. Our building does not need redevelopment as per one of the report from an engineer.

I have taken an educational loan of around 20 lakh against our flat in this building. We have been staying in this flat since the building was developed.

Earlier when the builder had approached us, he promised verbally that he shall arrange for an FD, so that the bank will have no objection on the redevelopment. After the society's votes went in his favour, he backed out and is asking us to take a personal loan so that the bank's educational loan is paid off.

My family is not in a position to take up personal loan of 20 lakh.

We dont know how to oppose this wrong decision of development, which is going against our financial strength.

Please advice.

Thank you,

Shubhangi

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2 Replies

SAA_Bombay (Pro) 24 April 2012

It seems that your flat is hypothecated to bank. In this case, the interested party is your bank. Your society has to discuss the same with your bank. In case, they approach your bank you can say to your bank to give in writting that in future if anythings goes wrong, your bank will not hold you responsible nor they will ask for money from you in absence of hypothecated property. On repayment of loan you need you property papers back. This is a indirect pressure. In this scenerio your bank will not allow to society for redevelopment till they get an undertaking from your side & of course, you will deny for same. but make sure everything should be done in writting & do not forget to get acknowledged all the letters. If no acknowledge is possible, send Regd AD. Letters send to society should be marked to dy. registrar if needed.

Shubhangi (Sr Research Executive) 25 April 2012

Thank you for your reply.

Yes, our flat is hypothecated, due to the education loan.

Our society is putting a lot of pressure to get the things done through my family. It is not interested in talking to the bank themselves. Instead, it is asking us to take up personal loan and get the flat documents. The society is nowhere acting as a internediary in our talks with the bank from whom we have taken the educational loan.

Besides, the society doesnot care about the loss that we shall incur by taking up personal loan as against educational loan. This loss will be bourne by us solely. (interest rate of educational loan around 12.5% and personal loan around 17%).

The society is also not putting pressure on the builder to come up with FD from the bank. Should it put pressure on the builder?

Is there any other way that we dont get hit financially?....We dont want to get into the never ending loop of taking up loan after loan.

Can we oppose for this redevelopment process?

If my family opposes, we shall be the only one out of total 16 flats who will stand in opposition to this process.

Awaiting response.

Thank you,

Shubhangi