Is It Just The Papers Banks Check Before Granting You A Loan?

Suresh Mehta, 33, knows the importance of planning. This is why he started working towards building a strong creditworthiness to acquire a home loan in future, apart from saving money to make the down-payment. Even if job satisfaction was a distant dream, he did not look for a new employment. He is aware that banks do not take it kindly if you frequently switch jobs. He is also making sure that each of his bills are paid on time and there are no defaults taking place. The software engineer knows that this will help him maintain a good CIBIL score. He is also working towards pre-paying his auto loan and a personal loan before he applies for a loan for buying property. By the look of it, Mehta is on the right track. But, what are the chances of banks still denying Mehta a home loan?

Also read: Don’t Do These 5 Things Before You Buy A Home

We would say do not be mistaken by the advertisements of banks promising you an easy delivery of home loan. Getting a home loan might not be as easy as it seems. Even in cases such as Mehta’s, banks might reject the home loan application.

If you seem like a drifter

On paper, you not switching jobs works as a proof of you being consistent and loyal. However, the same impression has to made when you meet bank employees while they are in process of issuing you a home loan. If you happen to be a drifter by any chances, bank employees are sure to find that out. In such a scenario, they might reject your home loan application.

If you seem aggressive

Nobody would like to deal with an unduly aggressive person. If you get hyper because the loan application is taking too much time to process and start arguing with the bank staff, this is certainly going to work against you. Fine, you will have the option to complain against the bank. However, this will delay your home-buying plans even further.

Also read: 5 Things Prospective Home Buyers Must Do

If you take things too lightly

Things that show your non-serious approach towards things may also not be taken kindly by the bank. If they ask you to be present in bank premises with a certain number of documents on a specified date, it is imperative that you do so. In case there is a problem and you cannot comply with the same, do inform your points person about it. Recurring incidents of such sorts are bound to result in the banks rejecting your home loan application.

Can I Get A Home Loan With A CIBIL Score Of Minus 1?

Anybody who has ever taken a home loan will tell you that you should check your Credit Information Bureau of India Limited (CIBIL) score. Whenever you apply for the home loan or any form of credit, the lender will check your CIBIL score to determine whether you are eligible for the home loan.

In order to understand what lender checks in your CIBIL report, it is important to read and understand your CIBIL report.

Much has been said about CIBIL scores in the range of 500, 600 or 700, but there are scores ranging from 1 to 5. In fact, your CIBIL score can also be -1.

MakaaniQ tells you what happens if your CIBIL is being -1.

What are the factors that are taken into account to establish the CIBIL score?

  • Type of credit (whether it is secured or unsecured)
  • The volume of loan applications
  • Demographic information like age, income, location, office and residential address etc.
  • The number of loan enquiries (even if the loan is not sanctioned)
  • Credit utilisation ratio (it simply means how much credit is taken by you, as against how much is offered to you).

What does the CIBIL score ranging from 1 to 5 denote?

  • CIBIL score of 1 means the highest likelihood of default
  • CIBIL score of 5 means the lowest likelihood of default
  • Applicants with CIBIL score of 1-5 are new to the field of credit, and have credit history that lasts than 6 months

What does the CIBIL score of -1 denote?

  • CIBIL score of -1 means that you have no credit history
  • If you have nor previous borrowing history, no credit card and no track record on which your credit worthiness can be based on, the CIBIL will assign you a score of -1.
  • CIBIL score of -1 is also known as ‘NH’ or ‘No History’.
  • For the lender, CIBIL score of -1 would mean that there is nothing to look at, in the credit history of the applicant, because there is no loan or credit card history
  • But, the CIBIL score of -1 does not mean that you cannot take a home loan
  • Banks and financial institutions will do credit appraisal of home loan by analysing income proofs, Know Your Customer (KYC) papers, employer and employment details, ownership documents, other sources of income etc., despite your CIBIL score being -1
  • Every lender has internal credit policies to appraise and sanction home loan cases with credit history of less than 6 months

How to take a home loan with a CIBIL score of -1?

  • To begin with, no lender will deny you a home loan just because your CIBIL score is -1
  • You just lack credit history, and CIBIL score of -1 will not mean that you are not credit worthy
  • You must submit all income proofs (salary slips, bank statement reflecting salary credits, Form-16 etc.), tax returns, employment proof and a letter of recommendation from your employer etc.
  • Make your case strong by highlighting all your strong points like other sources of income, an increment letter, average bank balance maintained, bonus or reimbursements received, good number of assets with zero liabilities etc.
  • If you are taking a co-applicant on the loan, you can furnish his or her credit history (it is better to choose a person who has some form of credit detail or history). This way, the lender would be able to assess some repayment practice or pattern for you.
  • After the home loan is sanctioned and disbursed, if you pay all your home loan equated monthly instalments (EMIs) on time, you will end up having a good CIBIL score.

Vastu: How Mirrors Influence Money And Health Status

Are you planning to buy a home? If it is an under-construction property, then getting it customised according to your wishes is easier. But, what if it is a ready-to- move-in apartment? It is not easy, but small changes to your ready-to-move-in apartment (where chances of customisation are minimal) can bring in lots of positive energy to the house.

A mirror is a very small object, but it plays an important role in bringing positive energy to your house. It has a significant Vastu component, which is capable of affecting positive as well as negative energy. Traditionally, a mirror is used as looking glass, but few know about an effect it can have on positive and negative energy.  Vastu Shastra classifies mirrors that have the capacity to stagnate and deteriorate energy. So, to lead a comfortable and peaceful life, it is important to place mirrors in appropriate positions and directions.

Applying simple changes in mirror placement could increase wealth in your house. Following are few Vastu tips regarding mirror positions.

Also Read: Vastu Tips For Study Room

 

Positive effect

  • If mirrors are placed opposite the locker of your house, this can double wealth.
  • Placing mirrors in the north direction is fruitful. As north is the center of Lord Kubera- God of Wealth, it is important to keep this direction energetic and positive.
  • To sustain good energies that help increase wealth, any kind of businessman can place mirrors adjacent to the cash box. This will not only increase the wealth but will also attract more customers.
  • For better health, mirrors in the bathroom should be on the east or north walls. This helps in removing negativity and bring in brightness.
  • In dressing rooms, mirrors should be placed within 4 to 5 feet above ground level.

 

Negative effect

  • South east is a fire direction. If you enhance this by placing a mirror, chances of quarrels and tiffs will become greater. So, avoid fixing looking glass in this direction.
  • Vastu Shastra advises not to place mirrors opposed to each other. This will encourage restlessness.
  • According to Vastu, the kitchen should not be in the north-east direction. This direction magnetic energy. So, fire can easily destroy positive magnetic energy.
  • According to Vastu, mirrors should not face north or east. This may reflect away positive energy entering from the north or east direction.
  • For a good health and peaceful sleep, mirrors should be avoided in bedrooms. According to Vastu, if there is a mirror in the bedroom then it should not face the bed.
  • Mirrors should not face the entrance or the entry gate of the house, as they reflect the energy entering the house.

 

Quick Vastu tips

*Square and rectangular mirrors are good for the house; oval and round shaped mirrors should be avoided.

*For positive results, individuals suffering from sleeplessness, headache or heart problems could place a three-inch mirror between the mattress and the bed, facing upward.

*Mirrors in the bathroom should be sufficiently lighted, and should be never kept in the dark. 

*Mirrors reflecting sunlight, a bed or main door attract negative energies. Hence, they should be carefully placed.

*Discard broken, rusted or unused mirrors in the house. These can be a source of hindrance for the overall positive environment.

*It is believed that using large mirrors in the dressing table and looking at oneself in it early in the morning increases positivity and is regarded auspicious.

*However, care should be taken while placing the dressing table in the bedroom. The mirror should never reflect the person on the bed that can lead to health issues.

*Never hang mirrors on the ceilings or the south walls as it can bring negative energies.

*Window panes and doors made of glass also act as mirrors. Cover them with curtains to avoid any ill effects.

*Mirrors should not be positioned opposite to one another which can cause restlessness, impatience or anger.

Also Read: Vastu Tips For Choosing The Right Apartment

Applying these simple Vastu tips in proper placement of mirrors in your home can bring in immense positive energy, greater wealth and good health.

 

5 Ways To Give Your Home A Close-To-Nature Look

Living close to the nature has always been a retreat where humans feels fresh, healthy and at peace. So, how about incorporating a close-to-the-nature look to your home, too? 

PropGuide lists five ways in which you could do this.

 Brick by brick

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Nature’s beauty lies in its raw look, and you could add this to your home by giving your walls a look that you would find in a far-off house in the middle of the woods. Have a brick wall in your home and leave it without plaster. This wall could be painted with an earthy colour, including white, light blue or shades of rust and brown.

Knock on wood  

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A close-to-the-nature look of your home would never be complete without adding the wood. Bring home this element by placing furniture with a rustic look, unpolished lamps made of raw wood, and even flooring made of natural wood. If you want to go a step further, how about giving one of the rooms a wood makeover, with a ceiling-to-floor wooden walls and wooden flooring?

 Go organic

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One of the new-found love among people is the organic products. These products are found across categories. So, to deck up your home you could incorporate furnishing made of organic fabrics, including cotton, wool or silk. There are brands in the market that specialise in organic forms of these fabrics. Also, to add to the element, bring in organic bath and beauty products.

 Right from the garden

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How can we forget the greens when we talk of the nature? Deck up your home with a variety of flowers that go well with the colour scheme you are following in a particular room. Here’s a guide to the flowers you could have in your home. 

 Light it up

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The most important element to complete the earthy look of your home is to let the natural light seep in. Your home should be designed in such a way for the most part of a day, the sun should be able to light it. Construct big windows or sliding glass doors which you could keep open during the day to let the light and air come in. This would also help you save on your energy bills.

PM Modi May Lay Jewar Airport Foundation Stone During Navratri

The foundation stone-laying ceremony for the Jewar International Airport by prime minister Narendra Modi is likely to take place between October 7 and October 15, 2021, even though officials are yet to receive a formal communication about the specific date.

“We did not get any specific date for the event yet but it is likely to happen during the Navratri festival,” Arun Vir Singh, chief executive officer (CEO) of YEIDA and Noida International Airport Limited (NIAL), said.

“Zurich AG, the concessionaire of the airport project, has started work on the ground. The state (UP) government will have to decide about the foundation or stone-laying ceremony. We are focused on commencing commercial operations within the next three years and on improving accessibility and connectivity of the Yamuna Expressway region with other parts of the national capital region (NCR),” he added.

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Jewar Airport Master Plan Gets YEIDA Approval

August 19, 2021: All official formalities to develop the national capital region’s second airport have been completed, after the Yamuna Expressway Industrial Development Authority (YEIDA) gave its nod to the Jewar Airport master plan. The master plan was sent for approval to the YEIDA, after it received a green signal from various authorities and agencies, including the Airports Ministry, the Airports Authority of India, the Directorate-General of Civil Aviation and the Noida International Airport Limited (NIAL). This development paves way for the start of construction work on the Jewar Airport within a week.

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PM May Lay Foundation Stone of Jewar Airport In August 2021

August 12, 2021: The foundation stone for the Jewar Airport project may be laid by Prime Minister Narendra Modi in August 2021, after the company responsible to develop the second airport in the National Capital Region completed the formalities involved in the financial closure for the development of Phase-1.

Yamuna International Airport, a fully-owned subsidiary of Zurich International Airport that will execute the project, on August 11, 2021, signed an agreement with State Bank of India (SBI) to receive a debt amounting to Rs 3,725 crores, to build the Jewar Airport.

“YIAPL has raised Rs 3,725 crores in debt from SBI, to be repaid over a period of 20 years with one-year moratorium post completion of the project. This is one of the largest financing in an Indian greenfield airport. The financial closure marks another crucial milestone for the project, bringing it closer to the start of construction works,” an official statement said.

In July 2021, Noida International Airport, the nodal agency incorporated by the Uttar Pradesh government to monitor the Jewar Airport, also handed over more than 1,334 hectares of land to Yamuna International Airport.

Spread across an area of 5,000 hectares, the Jewar Airport will be built by Swiss Airport company, Zurich International Airport AG, at an estimated cost of Rs 29,560 crores. Zurich International Airport AG won the bid to develop the Jewar Airport, touted to be the biggest airport in India after completion, in November 2019.

“We are pleased to confirm that over 1,300 hectares of land have been handed over to us today for the development of Noida International Airport. We have signed a site inventory memorandum, which gives us the right of way to the available part of the site to commence construction activities,” Yamuna International Airport Pvt CEO Christoph Schnellmann said, on July 31, 2021.

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Aviation Ministry Arm Grants Approval To Jewar Airport Project

The Bureau of Civil Aviation Security (BCAS) of the Civil Aviation Ministry, has given its approval to the Jewar International Airport on April 14, 2021. The BCAS is the regulatory authority for civil aviation security in the country.

“A great news! The security clearance and vetting for Phase I of the Noida International Airport has been received from BCAS also, and has already been received from the other regulating authorities,” SP Goyal, additional chief secretary to UP chief minister said, in a tweet.

The development comes a day after Yamuna International Airport Private Limited (YIAPL) floated tenders to start construction work for the airport project. Note here that YIAPL is a subsidiary of Zurich AG, the Swiss developer that has been appointed to build the NCR’s second airport in Jewar.

 

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UP Grants Rs 2,890 Cr For Jewar Airport Phase-II Land Acquisition

The gloomy stories that investors hear with regard to Noida real estate may be confusing, especially to those who had their eyes on this affordable property market to build a home but the developments surrounding Jewar Airport, give them enough hope not to lose heart and hold on only a little longer before things change for the better.

In a measure that is indicative of the Uttar Pradesh government’s priority treatment towards the Jewar International Airport project in Noida, the chief minister Yogi Adityanath-led cabinet, on March 17, 2021, approved a grant of Rs 2,890 crores, for land acquisition for Phase-II of the project. The decision by the state comes, over a month after the UP government, in its Budget, set aside Rs 2,000 crores for the airport project.

“A budget of Rs 2,000 crores has been proposed for the Noida International greenfield airport in Gautam Buddh Nagar’s Jewar,” UP finance minister Suresh Khanna said in his Budget speech. He also said that Phase-I of the airport was likely to become operational by 2023.

On March 16, 2021, it was also reported that the state government was planning to conduct the bhumi pujan ceremony for the airport project on April 15, 2021. According to local MLA Dhirendra Singh, people concerned have been directed to resolve any pending issues, to pave way for the upcoming ceremony.

Meanwhile, a state support agreement between the Yamuna International Airport Private Limited and the Noida International Airport Limited, a subsidiary of the Zurich Airport International AG, the Swiss developers selected to build the project, was signed on March 1, 2021.

“The country’s largest state had only two international airports earlier – in Lucknow and in Varanasi. However, it will soon have five international airports, including the upcoming ones in Jewar, Ayodhya and Kushinagar, near Gorakhpur,” the CM said at the signing of the pact, adding that connectivity was vital for the overall development of UP.

Emphasising the importance that his government accorded to the mega airport project, touted to be the biggest such project in Asia, Adityanath also said that his government had decided to prioritise it in the interest of the state and the country.

Jewar Airport Plan Sent To Aviation Ministry For Technical Approval

The Jewar Airport master plan, which was submitted by developer company Zurich AG to Noida International Airport Limited (NIAL), was sent to the Civil Aviation Ministry, on December 8, 2020. Under the master plan, which talks about development of the project in four phases, a Delhi-Varanasi high speed rail station will be constructed in this airport building, providing passengers with air, as well as rail connectivity. The plan also talks about making the Jewar Airport a domestic hub with 75% of all its operations concentrated within India.

The ministry is likely to return the master plan to the YEIDA after technically vetting, which could take up to a month.  

After winning the bid to build the Jewar Airport in October 2020, Zurich AG, on December 3, 2020, submitted the master plan for the project. The document, which will also be vetted by the UP government, Noida International Airport Limited, etc., before being unveiled next year, will act as the blueprint for the development of the mega project. The Swiss company was set a December 7, 2020, deadline to submit this crucial document.

In November 2020, private lender HDFC Bank as reportedly entered into an agreement, to provide Rs 500-crore funding to the airport project. The Yamuna Expressway Authority, the agency responsible for the development of the airport, has already secured Rs 4,500 crores as loan for this purpose.  With everything on course, the construction work on the Jewar Airport site is likely to start in another six months.

According to Zurich Airport International Asia Chief Executive Officer Daniel Bircher, phase-I of the airport project is expected to be completed early 2024, despite the ongoing conditions, where construction work is generally impacted because of the Coronavirus crisis. On completion, the airport, under phase-I, will cater to 12 million passengers.

The foundation stone for the airport project that was first conceived in 2001 and received approval only over a decade-and-half later, will entail the development of 2,200 acres of land and would be operational by 2023. With that, the national capital region will get the distinction of hosting two airports within a 100-kilometre radius.

That is not all. The arrival of the airport would bless this property market with several other infrastructural developments. The Jewar Airport will have an Aerocity on the lines of the one at the IGI airport. Plans are also in the works to link the $-3.1 billion Jewar airport with the Delhi’s Metro’s Aqua Line by 2025. The government is also considering the possibility of linking the airport with Sarai Kale Khan, a major bus transit station in the national capital, through a dedicated Rapid Rail Transit System (RRTS). At a later stage, the Jewar airport could be connected with the Eastern Peripheral Expressway that joins Haryana’s Palwal with Kundli, bypassing the national capital.

How will the Jewar airport impact Noida housing market?

If we analyse the current state of affairs, property markets around Noida are reeling under immense pressure ─ according to the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA), there are over 100 stuck projects in the region; private estimates peg this number at 1.5 lakh units.

That is just part of a much bigger problem Noida realty is currently dealing with. Some of the biggest developers of the region are close to insolvency – cases are pending against Amrapali, Jaypee and Unitech. The uncertainty involving these cases ─ After over two years of these cases popping up, no solution is in sight despite the fact that the Supreme Court has sworn to resolve these issues in a timely manner ─ is hindering concerted efforts made by sector stakeholder in achieving their desired target.

In an atmosphere such as this, the Jewar airport is the very thing NCR realty is in the need of. The project would touch lives and get back the positivism Noida currently needs more than anything.   

According to PwC, the agency that has prepared the techno-economic feasibility report for the project, the Jewar Airport is expected to handle over 10 crore passengers by 2050, serving 37 domestic and 31 international destinations.

Currently, people living in many cities of western UP and some cities of Rajasthan have to travel to Delhi — a journey of at least two hours — if they plan air travel. An airport in Jewar will be a great help for these people. This airport will not only address the aviation needs of Delhi but also of cities such as Agra, Mathura, Bulandshahr and Meerut. The Union civil aviation ministry expects this airport to give bolster tourism and economic potential of the region.

As it takes shape physically, the project, which is expected to generate millions of job opportunities, would improve investor sentiment and usher in that positive vibe Noida needs, all in due course.

How so?

Well, Jewar has already seen a status update, from being a part of the Bulandshahr district to being a nagar panchayat under the Gautam Buddh Nagar district now. Due to the ongoing developments, rates of the property along the area have grown substantially, too.

Landowners can already see the difference. While a bigha of land was sold for Rs 4-5 lakh in the past, rates have now touched Rs 20-25 lakh a bigha. A bigha of land measures 843 square metre. Farmers whose land is being acquired for the project are being offered three times the circle rate. While the prevalent land rate in the area is Rs 900 per square metre (psm), the government is offering villagers Rs 2,300 psm.

What to expect in the future?

Investments in this property market should be done strictly keeping in mind certain facts. First, not many developers would be launching a new project here since they are already under tremendous pressure to sell off their existing housing stock and completing their stuck projects. Those looking to invest in property along Jewar will have to primarily in the land.

Absolute dexterity must be shown in checking the legality of the land in case one is interested in buying since thriving property markets also become a breeding ground of property-related frauds. Also, the investment must be made keeping in mind the fact that profits could be made only in the long term.

*Issues involving land acquisition for the projects are still being resolved.

Year

Event

2016

April: Govt requests UP to develop a detailed project report for the proposed airport

2017

June: Civil aviation ministry clears plan for Jewar airport

2018

August: Govt forms Noida International Airport Company Limited (NIAL) to handle project management

November: UP govt approves the allocation of Rs 1,260 crore for land acquisition

December: District administration submits rehabilitation and resettlement document on land acquisition

2019

February: Up govt allocates Rs 800 crore for land acquisition in its annual Budget

April: Allahabad High Court dismisses petitions by farmers seeking higher compensation for their land, paving way for the land acquisition process

May: UP Cabinet approves bid document for the airport; sanctions 

Rs 894 crore for resettlement 

September: Noida administration acquires 923 hectare of the 1,235 hectare required for Phase-I 

*Noida administration inks MoU with pvt partners to develop a 92-acre forest in Jewar

November: Adani Enterprises, Delhi Airport International Limited, Zurich Airport International and Anchorage Infrastructure Investments bid for the airport

2020

January: An SPV, Yamuna International Airport Private Limited, is formed to develop the project.

May: Zurich Airport International AG receives the clearance to carry out the project work from the home affairs ministry.

October: Zurich Airport International AG and Yamuna International Airport Private Limited sign concession agreement.

November: HDFC Bank signs pact to provide Rs 500 crores as loan for the project.

December: Zurich AG submits master plan to NIAL

December 8: Master plan sent to civil aviation ministry 

 

Jewar Airport Foundation-Laying Ceremony To Be Held During Navratri

Prime minister Narendra Modi is likely to lay the foundation stone for the Jewar International Airport during the 2021 Navratri festival. The nine-day festival, dedicated to Goddess Durga, starts on October 7 this year and would end on October 15, 2021.

“We did not get any specific date for the event yet but it is likely to happen during the Navratri festival,” Arun Vir Singh, chief executive officer (CEO) of YEIDA and Noida International Airport Limited (NIAL), said, adding that the ground work on the project had already started.

“Zurich AG, the concessionaire of the airport project, has started work on the ground. The state (UP) government will have to decide about the foundation or stone-laying ceremony. We are focused on commencing commercial operations within the next three years and on improving accessibility and connectivity of the Yamuna Expressway region with other parts of the national capital region (NCR),” he said.  

 

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Jewar Airport Construction May Start Before August 2021-End

August 19, 2021: The construction work on the Jewar Airport may start in a matter of a week, after the Yamuna Expressway Industrial Development Authority (YEIDA) gave its approval to the master plan for the airport project. The approval by the development agency came soon after the Noida International Airport Limited (NIAL) gave its go-ahead to the Jewar Airport master plan. Before the NIAL approval, the Jewar Airport master plan was also approved by the Airports Ministry, the Airports Authority of India and the Directorate-General of Civil Aviation. 

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PM May Lay Foundation Stone for Jewar Airport In August 2021

August 12, 2021: Prime Minister Narendra Modi might lay the foundation stone for the second airport in the NCR soon, with the executing agency for the Jewar Airport, Yamuna International Airport Pvt Ltd (YIAPL), completing the financial closure for the project on August 11, 2021, after receiving Rs 3,725 crores in debt from government-run State Bank of India (SBI).

On July 17, 2021, the Yamuna International Airport was also handed over 1,334 hectares of the Jewar Airport land by the Noida International Airport Limited, the nodal agency set up by the Uttar Pradesh government to monitor the project, touted to be India’s biggest airport upon completion.

“YIAPL has raised Rs 3,725 crores in debt from SBI, to be repaid over a period of 20 years with one-year moratorium post completion of the project. This is one of the largest financing in an Indian greenfield airport. The financial close marks another crucial milestone for the project, bringing it closer to the start of construction works,” an official statement by Yamuna International Airport said, on August 11, 2021.

Recall here that the Jewar Airport project is being funded on a debt-to-equity ratio of 65:35. Zurich International Airport, a fully-owned subsidiary of Flughafen Zurich AG, is infusing Rs 2,005 crores as equity into the Jewar Airport project. Yamuna International Airport is a 100% subsidiary of Zurich International Airport.

“We are committed to developing the aviation ecosystem in India, with an investment of Rs 5,700 crores for Phase-I of the Jewar Airport development. The Noida International Airport will hold strategic importance and will be an economic engine for growth in Uttar Pradesh and India,” Yamuna International Airport Pvt CEO, Christoph Schnellmann had said, in July 2021.

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Jewar Airport Gets Clarence From Aviation Ministry Arm

April 15, 2021:  The Bureau of Civil Aviation Security (BCAS) of the Civil Aviation Ministry, has cleared the Jewar International Airport project, said SP Goyal, the additional chief secretary to UP chief minister, in a tweet.

“A great news! The security clearance and vetting for Phase I of the Noida International Airport has been received from BCAS also, and has already been received from the other regulating authorities,” Goyal said in his tweet on April 14, 2021.

The move by the BCAS, the regulatory authority for civil aviation security in India, comes a day after Yamuna International Airport Private Limited (YIAPL) floated tenders to start construction work for the airport project. YIAPL is a subsidiary of Zurich AG, the Swiss developer that has been appointed to build the airport in Greater Noida’s Jewar.

 

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Jewar Airport: UP Allots Rs 2,890 Cr For Phase-II Land Purchase

In a move that would increase the chances of timely completion of the much-touted infrastructure project, the Uttar Pradesh cabinet, on March 16, 2021, approved Rs 2,890 crores for the second phase of the Jewar International Airport. The money allocated will be used for land acquisition for the second phase and to resettle the people displaced due to this exercise.

A total of 1,365 hectares land of land will be acquired by the government, to develop the second phase of the Jewar Airport. Land acquisition for the first phase, which is likely to be operational by 2023, has already been completed.

Earlier in March 2021, a state support pact was also signed between Zurich International, the Swiss builder that has won the bid to construct the project and the Yamuna Expressway Authority, to initiate the work on phase-I. The government is also planning to conduct a bhumi pujan ceremony for the same, on April 15, 2021.

“The country’s largest state had only two international airports earlier – in Lucknow and in Varanasi. However, it will soon have five international airports, including the upcoming ones in Jewar, Ayodhya and Kushinagar, near Gorakhpur,” UP chief minister Yogi Adityanath said, at the signing of the support agreement on March 1, 2021.

While presenting its Budget in February 2021, the state government had also allocated Rs 2,000 crores for the mega project, a ‘priority’ for the UP government. “A budget of Rs 2,000 crores has been proposed for the Noida International greenfield airport in Gautam Buddh Nagar’s Jewar,” UP finance minister Suresh Khanna said, while presenting the Budget in February.  

Jewar Airport Master Plan Sent To Aviation Ministry For Technical Vetting

Noida International Airport Limited (NIAL), the special purpose vehicle set up to develop an international airport in Noida, on December 8, 2020, sent the Jewar Airport mater plan to the Civil Aviation ministry, for technical inspection. Last week, the NIAL received the master plan from Zurich AG, which won the bid to develop the second airport in the National Capital Region (NCR). The Ministry is likely to take nearly a month, for the technical screening of the document, which talks about developing the Delhi-Varanasi High Speed ​​Rail Station within the terminal building. The master plan talks about a four-phased development of the airport. 

Swiss operator Zurich AG, which won the bid to develop the Jewar Airport project in October 2020, submitted its master plan for the mega project on December 3, 2020, to the Noida International Airport Limited (NIAL), the special purpose vehicle established to oversee the work of the second airport project in the National Capital Region. The company was given time till December 7, 2020, to submit the master plan that will act as the blueprint for the future development of the Jewar Airport.

Apart from NIAL, the union Civil Aviation Ministry, the Uttar Pradesh government and other regulatory bodies will vet the master plan, which outlines the development plan of the project over the next 40 years, before its gets unveiled next year.

Earlier, amid projections that the construction work on the Jewar Airport project is likely to start in another six months, private lender HDFC Bank has reportedly entered into an agreement with the Yamuna Expressway Industrial Development Authority (YEIDA), to offer financial assistance to the Jewar Airport project, by way of a Rs 500-crore loan. The fund thus procured would be used for land acquisition and development of the second airport project in the national capital region.

Zurich AG and NIAL signed a concession agreement with the Uttar Pradesh government on October 7, 2020. According to Zurich Airport, the Swiss firm, construction work on phase-I is likely to be over by early 2024. Once completed, the airport will serve 12 million passengers under its first phase.

Recall here that the Uttar Pradesh government, on December 16, 2019, handed over the conditional letter of award to the Swiss company’s CEO, Daniel Bircher, while the union home affairs ministry granted it the security clearance for building the airport in May 2020. To provide the much-needed liquidity boost, the Uttar Pradesh Budget in February 2020, allocated Rs 2,000 crores for the mega project.

Zurich Airport AG was selected from among four bidders, including Adani Enterprises, Delhi International Airport Limited, and Anchorage Infrastructure Investments Holdings Limited, to work on the airport project. 

The Gautam Buddh District Administration has also transferred the 1,334 hectares of land required for Phase-I of the project to the Yamuna Expressway Industrial Development Authority (YEIDA). 

Should You Invest In Property Near Jewar?

The government expects the Jewar International Airport to become operational by 2024 – the land acquisition process is on; the Uttar Pradesh government has started setting aside money for the project. Industry experts expect things to slowly start looking up for Noida’s real estate market that has been under tremendous stress for about five years now because of an ongoing slowdown locally after the ground-breaking ceremony for the national capital region’s second airport, which would also be the country’s biggest airport by size, takes place, likely after the Lok Sabha elections. How could homebuyers/investors use this opportunity to the best of their advantage?

If you are an investor

Those who have already invested in property markets around the area — the proposed site runs along the 165-km Yamuna Expressway — have little reason to be cheerful if we speak of the present. Instances of project delays and developers going insolvent have severely damaged buyer sentiment which has resulted in record low home sales. Declining sales have further resulted in the downfall of the Noida property market, which includes Greater Noida and Yamuna Expressway, gathering the highest inventory stock in the whole of NCR, data available with Makaan.com show.

In a housing market where developers are struggling to sell the existing stock, does it make any monetary sense to make a fresh investment? If you are there to make a quick buck, it may not. If you are in the property market to earn handsome returns in the long run, it certainly does!

How so? The fact that rates have slowly begun to move upwards in Jewar on hopes of the village getting an airport notwithstanding — as against Rs 4-5 lakh a bigha in 2015, rates have gone up to Rs 25 lakh a bigha now — property here is still quite affordable here if you compared it with similar properties in Haryana or Rajasthan.  For a plot measuring the same, investors will have to keep over a crore in Manesar and Bhiwadi.

This is indicative of the growth potential land in this region has — the arrival of the airport would start pushing the rates upwards. The affordable land here may cease to be that after 2023.  A little diligence, planning and patience would mean an investor can make a windfall on their investment here, even if they plan to flip.

Those ready for a longer commitment can expect to make impressive rental income. The airport would create millions of jobs. Those working here would need to live close by. Those looking for smaller investments would purchase from the existing housing stock that realtors are willing to sell cheaper. These would also have high chances of becoming rent-generating machines in the future. While investing in land and building independent homes makes sense, planning an entire project may not be viable, considering the region already has a huge unsold inventory.

If you are a buyer

This is possibly the only area in the NCR where a homebuyer can purchase land at affordable rates and build a spacious independent home. Those aspiring for community living would also get the same benefit.

Data available with Makaan.com show property in Greater Noida is among the most affordable in the NCR—a square foot of space here is available for Rs 3,000. Between 2013 and now, prices have also remained almost unchanged at the Yamuna Expressway, at Rs 3,800 psf.

The image of Noida realty might have taken a beating owing to a multitude of issues, but rough days have certainly turned it into a buyer’s market. Developers are open to cutting you a better deal now than they were before.

However, infrastructure in the region is still in developing stage — construction activity would run high in the times to come since building work is likely to simultaneously start on various projects, including Jewar Metro — it may take a while before the hustle bustle around your homes stop.

In developing areas, land-related frauds become common. Check out the paperwork diligently in case you are buying land in Jewar.

The developing story

The timeline: The proposal for an airport in Jewar was made in 2001 when Rajnath Singh was the chief minister of Uttar Pradesh. His successor Mayawati also backed the plan, and her government acquired more than 2,000 acre for the project.

It was in December 2018, however, that the UP Cabinet, headed by Chief Minister Yogi Adityanath, gave its approval for the development of the airport.  The Union government had also given site clearance approval for the project in July last year.

Estimated cost: Nearly 5,000 hectare of land would be needed for the development of this international airport that would be developed in four phases. The estimated cost of the project, which will be carried out by the Yamuna Expressway Industrial Development Authority, is pegged at Rs 20,000 crore. This cost does not include connectivity plans.

Capacity: According to PwC, the agency that has prepared the techno-economic feasibility report for the project, the Jewar Airport is expected to handle 60 lakh passengers by 2022-23, when the first phase of the project is slated to be ready. It would cater to handle over 10 crore passengers by 2050, the agency says.

Connectivity: Passengers could take flights from the Jewar Airport to international destinations such as London, Abu Dhabi, Doha, Dubai, Kathmandu and Bangkok, apart from flying to key domestic destinations.

The impact: The civil aviation ministry expects this airport to give a boost to connectivity in the whole of western Uttar Pradesh, which will, in turn, bolster tourism and economic potential of the region. This airport will not only address the aviation needs of the Delhi airport but also cities such as Agra, Mathura, Bulandshahr and Meerut. The arrival of the new airport would significantly improve the prospects of property in the region.  A high-speed network would only further the momentum.

The green touch: The Noida administration has also signed a pact with private entities to develop a 92-acre land parcel for its afforestation programme. This would mean buyers would remain close a vast green area.

With inputs from Housing.com News

All You Need To Know About Partial Occupancy Certificate

Under-construction properties offer you the luxury to invest in real estate at a comparatively low price. They also give you the option of living in a brand-new house, something that a resale property does not offer. However, to be able to make the best use of your investment, you need to be well versed with several civic, legal, technical and financial aspects. It is in this context that you must know what role partial occupancy certificates have in the purchase process.

Buyers are aware that they cannot occupy a unit in a housing project, till the time the project has received an occupancy certificate (OC). Now, housing projects that involve large-scale developments, are typically built in a phased manner. Once a part of the project is complete, the developer has the right to apply for a partial occupancy certificate (POC) with the local authority.

For example, if a realtor is building a large housing project that involves construction of, say, eight towers, he could apply for a POC as soon as the work on the first tower is complete. Now, the question that arises, is whether it is legal to occupy a unit, which has received a POC and not an OC?

Also Read: Should You Make The Final Payment Before Receiving Occupancy Certificate

The answer is that you are well within your right to occupy a unit in a tower for which your developer has received a POC. However, the builder must apply for an OC after the completion of the entire project.

Here are some important things about POC that you need to keep in mind:

Home loan: Unless your developer has a tie-up with it, a bank would not be willing to issue you loan for a project that has received only a POC. If you are picking a fresh unit out of the unsold units lying with a developer, make sure he has in his possession an OC and not just a POC.

Validity: The validity of the POC expires as soon as the project is complete—technically, a builder must complete the project for which he has received a POC within seven years. Once that happens, the developer must apply for an OC with the development authority within 30 days. However, a POC is no guarantee that the developer will be able to get the OC too, as this would depend on several factors.

Ownership documents: While you will be able to apply for utilities using the POC, the authorities may not sanction you the documents that prove your ownership of the property. In Bengaluru, for instance, khata certificates by the city’s development body are not issued till you present an OC.

Project progress: Buyers that have been given a POC must closely monitor the progress of the project and ask the developer to issue the OC, as soon as the project is completed in entirety.

Possession: A POC gives the developer a chance to offer for possession the units that lay in a finished tower. If such was not the case, the buyer of tower A would have to wait to get possession till, say, Tower D was completed in a project. Hence, this arrangement works well for both, the buyer and the realtor.

It has been noticed that realtors also insist on buyers taking possession of units, saying they have received a POC for the tower. Upon arrival, buyers find their accommodations unfit for living. First of all, the developer can in no way force you to take possession of what is uninhabitable by standard definition. This must be brought to the notice of the Real Estate Regulatory Authority in your state.

Common facilities: While the law says that the housing units of a partially completed project cannot be handed over without giving the occupants access to common facilities, there have been several instances where buyers have to wait for long to be able to use common facilities.

Also Read: Occupancy Certificate: Why Is It So Important?

Selling An Under-Construction Property? Read This

Mahesh Chabbria who booked a 3BHK unit in Noida is planning to sell this unit even before he has taken possession. However, a few questions bother him. Is it legal to sell before possession? Does it mean additional expenses? How should he go about it? Read on to know.

Is it legal?

Yes, it is. In fact, a lot of investors try a hand at what is usually understood as “flipping the property”. To enter the property market and exit it in order to make some profit on it is what skilled investors usually do. However, if you haven’t taken possession yet, there are some factors you (assigner) need to mind.

The builder is party to your agreement: Given that you haven’t taken possession of the flat, the builder will be a party to your agreement and transaction with the buyer of your unit. This tripartite agreement between the assigner, assignee and the builder is called the Assignment Deal. This is important because as the first homebuyer and now the seller, you haven’t yet fulfilled the commitment of paying the full consideration to the developer nor do you have the complete rights over the property because you do not have the possession of the unit.

Be mindful of the cost: You may be a seller (Assigner) but you are a buyer in the first place. Make sure that the assignee to whom you are selling your new unit is in a position to pay you. If he/she has simply given you some token money and taken an unduly long time to pay you the rest of the amount, you may be in trouble later especially if he cancels the deal with you.

Is the assignee eligible to take a loan?: Do not fall for a word-of-mouth assurance from the assignee that he/she will buy your unit. Does the buyer have a sanction letter that can claim his/her eligibility? Note that there may be a host of reasons why a loan may get rejected, one of them being a previous loan that isn’t closed yet.

Will the assignee close your loan for you?:  It is advisable that you seek help from your financial adviser. In most cases, an assignee may want to take over and close the loan that the seller is paying but usually, banks are not comfortable with this arrangement. Documents regarding payment of seller’s bank loan are not enough proof for the lending banks.

How do lenders work?: Suppose that an assignee is willing to close your loan with his own funds but your loan is way too large. What do you do? Will the assignee’s lending bank be willing to take over from the assigner’s lending bank? Remember that the title of the property is still with the builder and a conditional no-objection certificate is therefore necessary. Experts say that two loans taken on one property by the assigner and the assignee is a tricky situation and make sure your financial adviser helps you out with this one.

Mind the joint owners: Remember that all co-owners are necessarily co-borrowers, therefore, it is better you avoid distant relatives or even friends. Similarly, it is unwise to make a married sister or aged parents, brother-in-law or those geographically far from you as a joint owner. Bank loans may get rejected on this basis as well.

What if the deal fails?: If the new buyer backs out, the builder may or may not choose to return the transfer fee paid by the assigner to the builder. The best recourse would be to request the builder to hold on to the fee till you find a new buyer.

Should You Borrow From Family Members To Buy A Home?

It is always better to depend on your friends and family members for financial help for a number of reasons. To begin with, you do not have to pay an interest in case you take a loan from them. You will only be returning what you borrowed. But, you run the risk of spoiling your relationship in case you fail to show sincerity in repayment. Let us understand this with the help of possible scenarios.

Scenario 1

Abhay and Ankita had an arranged marriage. It was a well-thought of decision. While enough money was spent to mark a decent wedding ceremony, the two youngsters in their late 20s who have been living on rent in the city of their work combined a large part of their savings to buy their home. They were also co-applicants in the home loan application. Later, Ankita would use her income to run the household while Abhay’s salary would be spent in paying the monthly EMI (equated monthly installment). As fate would have it, the duo decided to separate at a later stage. Among all the major issues that needed resolving was the property ownership issue. Apparently, Ankita paid more money when the down-payment had to be made. There was no legal record of that.

Scenario 2

On his father’s suggestion, Rahul bought a home, but not without taking help. His father paid the entire down-payment. Years later, Rahul’s younger brother would claim ownership over the property. In his opinion, he, too, owned a part of the property as their father made the initial payment.

Scenario 3

Manish took a loan from his close friend to quickly purchase a home. Later, financial issues occurred, and despite his best intentions, Manish was not able to meet the repayment deadline. His friendship with this close buddy turned sour.

***

In all the cases cited above, something or the other went wrong. However, this is not to say you should depend entirely on bank finance to buy a home. Seek the help of your family and friends.

  • To begin with, you do not have to pay an interest on this loan. You will only be returning what you borrowed.
  • There is little paperwork that you will have to do.
  • The process would be much faster.

Now arises the question—are these benefits worth the trouble that might arise in future owing to any discontent? Would you be ready to jeopardise your personal relationship with someone because of the benefits cited above? The answer to your question is that any unpleasant situation may not arise at all in case you are careful enough.

Points to consider when taking money from family members and friends to fund a house purchase:

  • Even if we do not give money undue importance, you do know that it has the potential to spoil personal relationships. As a precautionary measure, formalise the process so that there is clarity on who spent what. In scenario one, the couple could have done that.
  • In case your parents are helping you buy a home, your siblings will expect similar help in their time of need. So, it may be a good idea to take the money in the time of your need. But, do not forget to return it. This process, too, should be formalised.  
  • Friendships are solely based on trust. It is only based on this trust that a friend, who will have no ownership rights over your property at any point in time, decided to lend you money. You have to be extremely careful if you are one such borrower. Do stick with the deadline. In case of an issue, keep this friend in the loop at all times.

Also Read: Taking A Loan From A Family Member? Read This

5 Mistakes Sellers Should Avoid

Ved Prakash Asthana, 51, bought a 2BHK flat in Delhi but as the size of his family grew, the house couldn’t accommodate all the family members. When Asthana decided to sell the house and buy a bigger unit in the suburbs, he thought it would be much easier being a seller than being at the other end of the spectrum. However, the way things unfolded, he soon realised it’s much tougher being a seller. Despite two years of consistent efforts, he has not been able to sell his property.  

There are many like Asthana whose wait endlessly to find the right buyer. And, the root cause is the many mistakes that sellers often make.

Here are five signs that mean you will have to wait for long before you are able to sell your property:

You have an upper hand

You think that as a seller, you can steer the deal to your advantage. However, if you knew better, you would realise, you, too, in all likelihood, were once a buyer and you did not let your seller have an upper hand. The sooner you realise that both parties are equal in a property transaction, the better.

Also Read: Tips To Make Better Money On Your Property Sale

You have unreasonable hopes

Your neighbour sold his house for a hefty amount last year and you want to sell yours for an amount higher than that. What you do not realise is that your neighbour’s house was bigger in size, better in condition and closer to the main road. You have to quote a price that is suitable for your property.  

You are in such a hurry

You have decided to sell the house because you are in a hurry to arrange fund’s for your daughter’s marriage. You may like to remind yourself that property transactions are highly capital-intensive and buyers will think hundred times before they give you all the money, even if they love your house. Being in a great hurry and pushing buyers may spoil your chances as a seller.

You are such a proud seller

Of course, you are in love with your house. You brag about its features and amenities till you freak the buyer out. What you must realise is that we love our things even if they have any shortcomings. However, a buyer is going to look at your property with the same amount of non-attachment as he would look at your neighbour’s.  

You are taking it easy

While the buyer and your property agent called you several times, you did not feel the need to respond by calling back. You were the seller, you thought, and it was the responsibility of the two to keep you entertained. You have to understand that your city has no dearth of houses, and the buyer will move on. There will certainly be many in the market chasing and entertaining him.