Mhada mulls over tie-ups with housing finance banks

The Maharashtra Housing and Area Development Authority (Mhada) plans to tie up with housing finance banks for the benefit of housing lottery winners and also to speed up home allotment processes within their organisation.
At the moment, internal discussions are underway among housing officials to prepare the road map for the tie-ups with banks.

"Partnership with banks will certainly cut down loan processing time for the home winners or home loan applicants. Instead of making multiple rounds of banks to get their home loans cleared, the winners will go to these financial institutions only a few times in the future," said a Mhada official.

The sale agreement for homes by private developers and resale properties runs into 10-20 pages. But the sale agreement between Mhada and the home winner is just the allotment letter, which is of two-three pages. Most banks are not aware of the fact that the allotment letter is, in fact, the sale agreement. This is because Mhada home loan applications are very few in number, 1,000-2,000 annually. Therefore, having tie-ups with banks will also help Mhada officials in reducing the time taken to hand over possession to home winners.