Nod to loan from property for education and health

Now, property owners can apply for a loan against residential plots or flats in Greater Noida and the YEIDA region for purposes other than building houses.

The decision came at a joint board meeting of the three development authorities of Gautam Budh Nagar on Thursday.

The proposal will now be forwarded to the UP Government for further approval before it is implemented.

According to officials, this loan could be for educational, medical, or any other purpose including setting up an industry.

“Till now, the two authorities have allowed mortgage permission against property only for home loans. However, it can be applied for only if the property owner has completed all allotment formalities and executed their lease deeds,” said Deepak Agarwal, chief executive officer, GNIDA.

“Once the state government approves the proposal, allottees will be able to avail themselves of the facility for any kind of loan,” Agarwal said.

Feeling the heat from agitated buyers, especially in the Noida Extension area, who are not able to get possession and registration of their flats, the joint board has further directed the GNIDA to adopt a lenient view for executing sub-lease deeds for group housing units. “In order to streamline procedures for the cash-strapped builders and consequently the harassed flat owners, the GNIDA will start executing sub-lease deeds for flat owners, which equal the amount of money deposited by the developer,” Agarwal was quoted in media.

Officials said, till now even if the builder had completed a portion of the project that was ready for delivery and possession to the flat buyers, the builder was unable to hand over possession since the NOC was not forthcoming from the Authority, in view of pending dues from the builder.