Skip to main content

How to Verify if a Property Is Actually “Loan-Approved” by Banks

 

How to Verify if a Property Is Actually “Loan-Approved” by Banks (Not Just Agent Claims)

Buying a home in Mumbra, Thane or Mumbai is a big decision.
Most agents say one common line:

👉 “Sir, property loan-approved hai. Tension mat lo.”

But many buyers later face loan rejection, legal issues, or loss of money.

As a responsible and honest real estate advisor, I want to explain in very simple words how you can check the truth yourself.

No legal language.
No fear.
Only practical steps.


Why Do Some Agents Lie? (Common Fraud Tactics)

Some agents (not all, but a few) lie because:

  • They want quick commission. They try to sell any property fast.

  • Builders put pressure on them to sell unsold flats.

  • Customers do not have much knowledge, so agents take advantage.

  • Verbal promises are easy. They say “Bhai trust karo" kehkar kaam chala lete hain.


Islamic perspective:
We must remember that lying and cheating are sins in Islam. Our income (rizq) should be halal. Even if it takes more time, halal earnings bring barakah.

Why You Should Not Trust “Loan-Approved” Claims Blindly

In areas like Mumbra, Kalwa, Diva, Thane, and Mumbai suburbs, many properties are sold with half-truths.


Common problems buyers face:

  • Bank rejects loan after token amount paid

  • Building has illegal floors

  • Builder/Agent shows one bank approval, but your bank rejects

  • Society or land papers are incomplete

👉 Remember: Agent ka bolna = Proof nahi hota

Honesty is important in every deal.


What Does “Loan-Approved Property” Actually Mean?

In simple words:

A loan-approved property means:

  • Bank has checked legal papers

  • Land is clear

  • Building permissions are proper

  • Builder documents are mostly in order

⚠️ Important:

  • Approval is bank-specific

  • One bank approval ≠ all banks approval

Example:
HDFC approved, but SBI or Bank of Baroda may reject


Below are the steps you can take to verify if a property is Bank Approved.

  • Ask for the "APF Number" (The Most Important Step)

When a bank approves a project (like a new building in Shil Phata or Kausa), they give it an APF (Approved Project Financial) number.

  • What to do: Ask the builder or agent, "Please give me the APF number of this building."

  • How to check: Take this number and visit the nearest bank branch (like SBI, HDFC, or ICICI). Ask them, "Is this project in your approved list?"

  • Why it matters: If the bank says "Yes," it means they have already checked the building papers.


  • Ask for NOC and Important Documents

Always ask the agent or builder for these documents:

Important Documents:

  • Occupation Certificate (OC): Proof that the building is completed and ready to live in

  • Completion Certificate (CC): Issued by the municipality after construction is completed

  • NOC from Bank: Some builders have this, showing the bank has no objection

  • Title Deed: Proof of who owns the property

  • Encumbrance Certificate: Shows there is no loan, legal case, or dues on the property

How to check:

  • Ask to see original documents, not just photocopies

  • Note down the document numbers

  • Verify them at the municipal office or on the official online portal




  • Ask for a "Draft Sale Deed"

Tell the agent, "I want to show the papers to my own lawyer." If the agent or builder makes excuses or gets angry, take it as a warning sign. A trustworthy person will never stop you from checking papers. Avoiding fraud is not just smart; it is the right way to protect your family’s future.


  • Talk to People Living in the Society

How to do it:
If the building is already constructed, meet and talk to 2–4 people who are living in the society.

What to ask:
“Which bank did you take a loan from? Did you face any problems?”

Their experience will give you the real truth about the property.


  • Check MahaRERA Registration

For new projects in Mumbra, Thane & Mumbai:

Visit MahaRERA website and check:

  • Project registered or not

  • Builder details

  • Completion date

  • Legal status

If project is not registered, banks usually do not give loan.


  • Check the Builder’s Track Record

There are many builders in Mumbra, Thane, and Mumbai. Every builder has a different reputation.

How to check:

  • Search on Google: “Builder name + complaints” or “Builder name + reviews”

  • Visit the MahaRERA website (maharera.mahaonline.gov.in)

  • Check the builder’s RERA registration number

  • Talk to old customers who have already bought from the builder

  • Ask in the local masjid, community groups, or Facebook groups

This helps you avoid problems and choose a trustworthy builder.


  • Get Property Verification Done by a Lawyer

This step costs some money (around ₹5,000–₹15,000), but it is very important.

What a property lawyer checks:

  • Whether all documents are correct and genuine

  • If any legal case is pending on the property

  • If the seller has clear and legal ownership

  • If there can be any problem in the future

How to find a lawyer in Thane/Mumbai:

  • Contact the local bar association

  • Take reference from friends or family

  • Check online platforms like UrbanClap (Urban Company)

This step gives you peace of mind before buying the property.



  • Apply for Loan Yourself (Safest Method)

Best test = apply for loan

Even if you don’t plan to take loan from that bank, apply small amount.

If bank says:

  • “File clear” → good sign

  • “Legal issue” → stop immediately

👉 Loan rejection = property problem, not buyer problem (most cases)


Don't Just See "Any" Bank

In Mumbai and Thane, there are two types of loans:

  1. Big Banks (Nationalized/Private): Like SBI, Axis, or HDFC. These banks are very strict. If they approve a flat, it is usually very safe.

  2. Small Path संस्था (Credit Societies): Sometimes, small local societies give loans even if the papers are weak.

Pro Tip: If a big bank rejects the building, be very careful! It might mean there is a problem with the OC (Occupancy Certificate) or the land title.


Beware of Common False Claims

❌ “All buyers got loan”
❌ “Don’t worry, manage ho jayega”
❌ “Cash + loan adjustment possible”

These words often hide illegal construction or floor issues.


Special Warning for Mumbra Buyers

In Mumbra area:

  • Many buildings have extra floors

  • Some have no OC

  • Some societies are partly legal

Banks may approve only lower floors, not top illegal floors.

Always check:

  • Your exact flat number

  • Your exact floor


FAQs – People Also Ask


Q: Can one bank reject and another approve?

Yes. Different banks have different rules.
But if 2–3 banks reject, avoid that property.


Q: Can I buy property without loan approval?

You can, but risk is high.
Resale, legal trouble, or demolition risk may come later.


Q: Is verbal approval valid?

No. Always ask for written confirmation or bank verification.

Q: Does "Bank Approved" mean the building is 100% legal? It means the bank is satisfied with the papers for a loan. But always check the Commencement Certificate (CC) to see if the builder has permission to build all the floors. Bank checks many things, but not everything. Still, it is much safer than trusting agent words.

Q: Can a builder show an “in-principle approval” letter?

“In-principle” means temporary approval, not final approval.
Always ask for the final sanction letter, not just in-principle approval.

Q: If a property is not loan-approved, should we avoid buying it?
Not always. But you should know this clearly in advance. If it is not approved, you will have to personally approach banks to get loan approval, which can be difficult.

Q: What can we do if the agent has lied?
First, make sure everything is written clearly in the agreement. If fraud has happened, you can file a complaint with RERA or go to consumer court. Take help from a lawyer.

Q: How many banks should we check with?
At least 2–3 banks. For example, SBI, HDFC, and one local bank like Thane Janta Sahakari Bank or Cosmos Bank.

Q: What should we check in a resale property?
Check the Society NOC, confirm that the previous owner’s loan is fully cleared (Encumbrance Certificate), and make sure maintenance dues are paid.

Q: Are resale flats also checked by banks?

Yes. Banks check:

  • Title chain

  • Society papers

  • Seller ownership

Resale without clear papers = loan rejection.


Common Excuses Jo Agents Dete Hain (Aur Unka Sach)

Excuse 1: "Abhi approval process mein hai, jald mil jayega"

Sach: Agar approval nahin hai, to property mat khareedein. Baad mein milne ki guarantee nahin.

Excuse 2: "Badi bank nahin deti, Choti bank de degi"

Sach: Agar 2-3 reputed banks mana kar rahe hain, to property mein problem ho sakti hai.

Excuse 3: "Aap token advance de do, hum loan arrange kar denge"

Sach: Token dene se pehle bank approval pakka kar lein. Warna paisa fas sakta hai.

Excuse 4: "Document thoda pending hai, jald aa jayega"

Sach: Complete documents ke bina kuch bhi sign mat karein.

Excuse 5: "Trust karo bhai, main Muslim hoon"

Sach: Islam mein bharosa zaroori hai lekin "verify karna" bhi zaroori hai. 


Red Flags: Avoid These Properties!

If you see these signs, be very careful:

❌ The agent is forcing you to close the deal quickly
❌ The agent says, “Pay in cash, you will save tax”
❌ They delay or avoid showing documents
❌ They do not give clear answers about bank loans
❌ The builder does not have a proper office
❌ No online presence or reviews
❌ No RERA registration number
❌ The price is much lower than the market (too good to be true)


Summary Checklist for You:

  • Get the APF Number.

  • Ask for NOC and Important Documents

  • Ask for a "Draft Sale Deed"

  • Talk to People Living in the Society

  • Check MahaRERA Registration

  • Check the Builder’s Track Record

  • Get Property Verification Done by a Lawyer

  • Apply for Loan Yourself (Safest Method)


Final Advice from a Local Real Estate Advisor

If you are buying property in:

  • Mumbra

  • Thane

  • Mumbai suburbs

Never depend only on:
❌ Agent talk
❌ Builder promise
❌ Friends’ experience

Always verify with bank + documents.


Need Help Checking a Property?

If you want:

  • Honest guidance

  • No pressure selling

  • Clear explanation in simple language

You can contact a trusted local real estate advisor who focuses on legal and safe properties, not fast commissions.

👉 Better to ask today than regret tomorrow.



Comments

Popular posts from this blog

Links

  Important Links Looking for quick access to different sections of our website? You’re in the right place! This page brings together all the essential links in one place, so you can easily explore who we are, get in touch with us, or learn more about real estate through our blogs and resources. Use the links below to navigate to: About Us – Learn more about our mission and services. Contact Us – Reach out to our team for any queries. Training & Certification - Our Certificate of Registration(s), Event Participation Certificate, Training Certificate and More. Blog / Knowledge Hub  – Stay informed with property insights and guides. Real Estate News  -  Stay updated with Real Estate News in & around Mumbra.

Occupation Certificate (OC) in Real Estate: Meaning, Importance & Buyer’s Guide

 When buying a property, especially in growing markets like Mumbra and across India , one important document often overlooked by buyers is the Occupation Certificate (OC) . It’s not just paperwork—it’s proof that your home is legally fit to live in. In this blog, we’ll break down what an OC is, why it matters, and how it impacts property buyers and investors. What is an Occupation Certificate (OC)? An Occupation Certificate (OC) is a legal document issued by the local municipal authority or development authority after the completion of a building project. It certifies that the construction: Follows the approved building plans Meets safety standards Has proper water, electricity, and sewage facilities Is legally fit for occupation Without an OC, staying in a property is considered unauthorized . Importance of an Occupation Certificate for Buyers Many first-time buyers get carried away by the location, price, and interiors of a property and forget to check the O...