Common use of Conditions for Disbursement of the Loan Clause in Contracts

Conditions for Disbursement of the Loan. Instalment of the Loan: The conditions for the disbursement of the Loan shall be mentioned under the Loan Documents in details however, some of the salient and major conditions are mentioned below: a. Submission of all relevant documents as mentioned by the Lender in the Sanction Letter / Loan Documents; b. Legal & Technical Assessment of the Property; c. Payment of own contribution by the Borrower (total cost of the Property less the loan amount), as specified in the Sanction Letter; d. Providing adequate utilization proof of the Loan; e. Undertaking by the Borrower to regularly provide the Lender information, including details regarding progress / delay in construction, any major damage to the property, change in employment/ contact details, non-payment of taxes pertaining to property, etc.; f. The construction is being undertaken as per the approved plans; g. The Borrower has satisfied himself/herself that required approvals for the project have been obtained by the developer; h. All required approvals for the property have been obtained and are available with the seller in case the property is being purchased in resale.