Thinking about taking a loan for buying a house?
Worried what if the project fails and your money is stuck?
We have seen so many movies where a lot of scams happen in real estate and we all have that relative or friend who has lost a LOT of money because "developer ya broker chor nikla".
I found one solution- "APF Code" which is the “Approved Project Financial” Code.
A. A developer is required to have a valid APF code or number for every project.
B. You should always ask your developer about the APF code or number of your project as it is an easy way to check whether the property/project is registered, and approved by Housing Finance company or bank.
C. Banks considers developers who’ve been in the real estate business for a long and have a history of finishing projects timely, for at least two to three projects.
D. The construction quality is also a significant factor.
E. Similarly, banks don’t consider builders who’ve been on the RBI’s negative list.
What happens in case your project doesn’t have an APF Number?
DO NOT BUY THAT HOUSE OR TAKE A HOME LOAN FOR THAT PROJECT.
In case any project doesn’t have an APF code, then it means that the project isn’t approved by an HFC or bank. The reason can be not having the required technical/legal approval or licenses.
How to Check APF Number Online?
You can visit the official website of your builder and do a quick APF number search to check the APF number of your preferred project. Alternatively, you can ask the developer about the same in person.
Cheers!
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