Money, loans and the all-in cost

The money, in order

Every rupee in a bank auction falls due at a fixed point. The 25% and every cost a home loan does not cover come from your own funds; a loan for the balance can only follow the win.

1. 1

   Before you bid — eligibility

   Know what you can borrow on your income and credit profile. Kenstone Credit, our group's credit desk, runs this check; it is indicative and you can take it to any lender.

   Lender credit norms; not a sanction

2. 2

   Before the auction — EMD

   Set by the sale notice, commonly 10% of the reserve price; returned without interest if you do not win.

   Rule 8(7)(e); the sale notice

3. 3

   On winning — the 25%

   Including the EMD, the same day or by the next working day. Always your own money.

   Rule 9(3)

4. 4

   After confirmation — the balance

   On or before the fifteenth day of confirmation of sale; the loan is applied for now, on the confirmation letter.

   Rule 9(4)

5. 5

   Only in writing — the extension

   Up to three months, if the bank agrees in writing before the deadline. Otherwise the deposit can be forfeited.

   Rule 9(4), 9(5)

6. 6

   After the sale certificate — the costs outside the loan

   Stamp duty and registration if the certificate is registered, TDS where it applies, and any dues that come with the property.

   RBI housing-finance norms; state stamp laws

A lender cannot approve a loan on a property you have not yet won. Plan the 25% and the costs outside the loan from your own funds before you bid.