If a project is NOT approved by the bank, should a buyer buy it or not?

 

If a project is NOT approved by the bank, should a buyer buy it or not?

❌ Short Answer:

Do NOT buy a project that is not bank-approved (especially for first-time or salaried buyers).

🔍 What does bank approval actually mean?

When a bank approves a project, it has already verified:

  • Land ownership & clear title

  • Legal approvals & sanctions

  • RERA registration

  • Local authority permissions

  • Builder credibility

If the bank rejects it, something is wrong or incomplete.

🚨 Risks if you buy a non-bank-approved project

  1. ❌ Home loan not possible – You must pay full cash

  2. ⚠️ Legal disputes – Land title or approvals may be missing

  3. 🏗️ Construction risk – Project may stop midway

  4. 🔁 Low resale value – Future buyers also won’t get loans

  5. 🛑 RERA issues – Project may be illegal or non-compliant

⚠️ When can you still consider buying? (Rare cases)

Only if ALL below are true:

  • You are buying with full legal verification by a property lawyer

  • Project is RERA registered (check on state RERA website)

  • Reputed builder with completed past projects

  • Rejection is due to minor technical reasons (not legal)

Even then → High risk.

✅ Safe checklist before buying

  • ✔ Bank approval from at least 1 nationalised bank

  • ✔ RERA registration number verified online

  • ✔ Approved building plan & commencement certificate

  • ✔ Clear title report (30 years)

  • ✔ Occupancy / Completion Certificate (for ready flats)

🧠 Expert advice (as a rule of thumb)

If banks say NO, buyers should say NO.



a clear, factual update on VS Royale 22 in Vikhroli (Mumbai) — and what it means for you as a buyer:

🏡 Project Details

  • Name: VS Royale 22 by VS Developers

  • Location: Kannamwar Nagar I / Vikhroli East, Mumbai

  • RERA Registration: Yes — P51800048541 (registered under MahaRERA) MagicBricks+1

  • Status: Ready / Under final stages of construction (possession around Sep 2025) Housing

  • Occupancy Certificate: Not yet granted (according to listings) MagicBricks

🏦 About Bank Approval

From the available property listings and real estate portals:

✅ RERA-approved: Yes — This is important legal compliance and means the project has submitted required documentation to the government authority. Blox
🏦 Home loans available: Several banks like HDFC, ICICI, SBI do offer home loans for this project — which strongly indicates bank approval for lending. NoBroker

👉 Bank loan availability is a key indicator of bank approval. If multiple major banks are willing to finance buyers at this project, it generally means the bank has assessed its legal status and is satisfied to extend loans.

However, the Occupancy Certificate (OC) — a document that officially certifies a building is fit to occupy — may not yet be issued. Lack of OC can delay registration or home loan disbursal if not obtained soon.

📌 So should you buy or not?

Here’s how to think about it:

✅ Good Signs

✔ The project is RERA registered — protects buyers and ensures some transparency. MagicBricks
✔ Banks appear willing to give home loans. NoBroker
✔ Located in Mumbai (strong resale market) and a desirable suburb (Vikhroli).

⚠️ Caution Points

❗ Occupancy Certificate not yet granted — this could delay loan final disbursement or registration. MagicBricks
❗ Plans or promises from listings might not reflect official bank sanction letters from your bank — you must verify.

🧠 Practical Advice Before You Buy

Before you commit any money:

  1. Ask the seller for a bank sanction letter or loan approval confirmation from your chosen bank (SBI / HDFC / ICICI).

  2. Verify RERA details on MahaRERA website with RERA ID: P51800048541.

  3. Check Occupancy Certificate status at the local municipal office or with the developer.

  4. Get a lawyer to review the title and documentation.

📍 Bottom Line

✅ If banks can sanction your home loan and
✅ the RERA registration is valid and
✅ the developer can provide clear OC/approvals,

👉 Then buying can be safe and reasonable.

However, do not buy just based on marketing or price alone.

Get loan confirmation before booking — that’s the key. 

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