Property owners in Bangalore can now avail loans to pay huge penalty charges. The Bruhat Bengaluru Mahanagar Palike (BBMP) has allied with some nationalized banks to fund the regularization penalty amount, which might be thousands or lakh of rupees. The loan will be backed by the same property on which the charges have incurred. The rate of interest will be same as the prevailing home loan interest rate.
According to the scheme, the banks will first process all the documents and then present a cheque to the BBMP for the amount. In case, the regularization for the property is rejected, the cheque will be returned to the bank. This is to ensure that there is no misuse of the money.
The scheme would benefit both the banks as well as the property owners. An official involved in the process said "It's a win-win situation for both banks and property owners. It's also good business for banks as a majority of people will apply for the loan. And for owners, the loan will not be a big burden. Also, the same customers may get back to the bank for home loans in future when they construct after the regularization."
This building regularization scheme had been rolled out earlier also. According to Akram Sakrama, a considerable number had applied for such loans last time. But the BBMP stopped the process in half way as the scheme was deferred by the new BJP government. Applicants complained that they incurred huge financial losses due to delay in regularization. Considering this, The BBMP commissioner S Subramanya passed a resolution to refund the fees to those who sought it.