Section 14 in The Regulations For Disbursement of Loans Under The Middle Income Group Housing Scheme, 1968
14. Disbursement of loan-A. Loan for construction of a house.
(1)(i)Loan for construction of house sanctioned, excluding the loan advanced for purchasing land for constructing the house, shall be advanced in three instalments consisting of twenty-five per cent, fifty per cent. and twenty-five per cent, according to the progress of the construction of the house and in no case, save in the case of loan for purchase of a newly built house under Rule 6 (2), shall the loan be advanced in lump sum.(ii)The first instalment, equal to twenty-five per cent. of the total amount of the sanctioned loan shall. be released only when the borrower has executed the mortgage-deed, complied with the required necessary formalities and the Housing Commissioner is fully satisfied on the basis of the evidence produced by the borrower and after satisfying himself that the borrower has invested from his own resources a sum equivalent to at least twenty-five per cent. of the total loan.(iii)The second and third instalments not exceeding fifty per cent. and twenty-five per cent. of the sanctioned loan, respectively, shall be paid when the house in question has been verified to the satisfaction of the Housing Commissioner to have been constructed in accordance with sanctioned plan up to plinth level and roof level respectively.(iv)If the amount of the first instalment of the loan is not drawn within three months from the date of sanction, the loan may be cancelled.(v)The Housing Commissioner shall satisfy himself that the house has been completed according to plan and specifications and the borrower shall furnish a certificate to this effect to the Housing Commissioner from the competent authority.(vi)The advance for purchase of land shall be sanctioned in one lump sum after borrower has furnished the security required therefor under these rules.B. Loan for purchase of house and land on which it stands. - (2) (i) The amount of the loan sanctioned for purchase of a house and land on which it stands shall not be released unless the Housing Commissioner is satisfied that the borrower has settled the purchase of a suitable house and has completed the preliminary formalities including those prescribed in Rule 6 (2), and has furnished one security prescribed under these rules.(ii)The borrower, shall be required to purchase the house and the land on which it stands within two months of the advance of the loan for the purpose and shall execute the prescribed mortgage deed within one month from the date of purchase of the same.
