We have taken a home loan from NBFC and the current effective interest rate is 14.65%.The home loan was sanctioned on the basis of agreeement to sale and construction.

The registration of the property is due & balance transfer to any other bank can not be done as the sale deed is yet to happen. This specific case is in Karnataka state where the saled deed is pending.

We are unable to afford such a high interest rate with this NBFC. Kindly advise on this.
Generally, lenders do not lend for housing unless certain legal formalities are completed in respect of any housing project. Various permissions, say from local bodies, sanctioned plan, registration on the website of Real Estate Regulatory Authority of the state (In your case, Karnataka Real Estate Regulatory Authrority), etc. are required. Again, certain rules related to property and housing are different from state to state.

So, I advise you to first check whether your housing project is registered on Karnataka RERA. If you find any lacuna, you may approach them or seek legal help from some local lawyers who are well versed with the state laws. You can still approach some banks to explore the possibility of transferring the loan based on whatever legal papers you have.
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Sucheta Dalal Trustee - Moneylife Foundation

Abhay Datar Abhay Datar is a consumer activist. After working at Bank of Baroda for about 29 years, he retired as IT Manager. After retirement, Mr Datar joined Consumer Guidance Cell of Mumbai Grahak Panchayat (MGP) in 2008 and solved many cases related to banking including online fraudulent transactions, misuse of credit cards and ATM cards. Also handled cases related with mobile banking frauds and mediclaim. He was a Member of the Managing Committee of MGP till March 2021.

Suresh Prabhu Mr Prabhu retired as Senior Vice President from HDFC Bank

R Bhuvaneswari After serving Bank of Baroda for almost 40 years, Ms Bhuvaneshwari retired as Chief Manager in 2013.

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on finance, credit related issues

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