What is APF Number in Real Estate Property?

APF Number in Real Estate Property - Namma Family Builder
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APF stands for Approved Project Finance. It is an approval given by a bank or financial institution to a real estate project. It gives 100% assurance that the project has all the necessary approvals.

It reflects the developer’s reputation and credibility, and ensures that their project was meticulously inspected, and that the loan repayment is secure and perfect. And also it assures the timely delivery of apartments as per schedule.

As a homebuyer, the investor can ask about this number directly from the builder to seek their financial assistance. In case a developer is not able to provide the APF number, then there could be a possibility that the project lacks some proper approval from a relevant authority.(the project might not received adequate relevant approval from the authorities). This will raise a suspicion about the project. A  homebuyer must avoid such projects. The homebuyer must always investigate the details perfectly.

More Details On APF

  • All the real estate projects need to have a valid APF number or code. This number is a proof that the project is authorised by the Housing Finance Companies (HFC).(or by a bank it is associated with). The funding institutions offer housing loans.
  • It signifies that the project meets specific criteria and is considered secure for financing. It minimises the risk of repayment on the loan. For the investors, finding a project that is as per the bank’s finances is very difficult and crucial. The APF perfectly serves this purpose.
  • Certain criteria is to be followed to assign this unique number to specific projects. This Approved Project Financial number is very much required by the investors and banks to verify the credibility of a project and a contractor. It is an best identifier. It is very useful identifier for both buyers and banks.
  • The quick checking and verification of documents are possible.
  • This is the most important detail of a project, the buyer has to check before investing in a property. It is an best way of checking the accreditation and registration of a particular project from respective authorities.
  • The APF number provides the details of the approval of the bank regarding the project, paperwork, proposal, documentation, various clearances, loan sanctions and others. The complete checking of documents are possible.
  • It enhances the due scrutiny while signing a deal. The investor need not care for collecting the legal documents of the project from the developer. This Approved Project Financial number prevents the investors from the tedious process of collecting all the necessary documents.
  • The investor can approach the builder and get this number from him for a financial assistance. The investor can just quote this number and submit their documents while applying for a home loan.
  • The quick loan  approval is possible with this Approved Project Financial  And the immediate sanction of a home loan is possible. With the help of an  Approved Project Financial number, the home loan application process gets much more streamlined. It  protects the investors from the hassle of time-consuming paperwork.
  • Most of the real estate developers have proper tie-ups with leading banks or Non-Banking Financial Companies (NBFC) to issue home loan facilities to their customers.

Essential Check List for APF number Approval Process

The approval process is possible when

  • The property is built on legitimate land
  • the construction adheres to the prescribed norms.(The papers of NOCs, government clearances, approved plans, sale deeds, title deeds, and leasehold/freehold paperwork will be checked.)
  • all relevant building codes, safety rules, and environmental requirements are strictly followed.
  • the property is subjected to a complete scrutinization of the concerned local bodies for water, electricity, fire, and environment. (Approved documents received from the fire, forest, pollution, and electric departments.) 
  • the property checking includes verifying the various type of land deeds and title, the documents of government departments, and environmental clearance, title certificate and building plan approval documents among the all other factors.

The real estate projects must have all the necessary approvals. Builders/ developers have to submit all the relevant documents to the lender. It is essential for housing projects to have the requisite approval and permits. Following the submission,  the documents will be thoroughly examined and scrutinized to confirm that they meet all legal and financial codes. And also the required construction and environmental guidelines.

It is an best way of checking the accreditation and registration of a particular project from respective authorities. The approved Project Financial number indicates the lender’s confidence (faith of the financiers) in a particular residential project. It is an essential certification. Funding institutions carry out intense scrutiny to confirm a project’s legality, and then only they grant it the necessary KYC (Know Your Customer) approvals.

The bank/lender has to carefully checks details pertaining to the individual property and the project to sanction a home loan. The bank needs all these approvals to fulfil the Know Your Customer (KYC) formalities.

After the completion of thorough examination of the documents and satisfaction with all the approvals the lender or other relevant authority will grant an approval.  These authorities are also very particular about the things to be done after the building period is over. They demand provision of detailed description of those things.

The Steps in Assigning APF number (Approved Project Financial assigning criteria)

The reputed financial institutions will issue Approved Project Financial number. The common criteria required to be fulfilled in order to get the APF number are listed below

  • The builder/developer must have minimum five years of relevant real estate experience. All the completed previous projects of the builder/developer must have the necessary legal approvals.
  • The On time completion of the scheduled projects history will be checked. The builder/developer must have a track record of timely project delivery. It is an perfect history of experienced contractors. If the builder lacks the required experience, a minimum of two to three projects shall be done in the past.
  • The builder should have ISO (International Organisation for Standardisation) certificates for at least three of their previous projects.
  • The building quality is also a major factor and there should not be any compromise on the construction quality. It should be as per the norms of the bank.
  • The builder must be an member of the Chamber of Housing Department of any State.
  • Affiliation of the builder with other banks is also considered as one of the factor. The approval of a few other reputed banks or institutions is also a must for the housing project.
  • The area of the current project or the future development projects shall be included in the documents.
  • The total square footage of under-construction real estate projects must be specifically mentioned.
  • The builder should not get listed on the Reserve Bank of India (RBI) negative list. The banks will not consider the builders listed in the ‘negative list’.

Depending on the financial institution’s terms and conditions, several other criteria are also imposed. Finally a proper consultation with a financial advisor is highly recommended.

APF number Finding Out Process

How to find out the Approved Project Financial number of a project to avail home loan, the following process is to be followed

  • First of all, the official website of the housing project’s developer is to be visited.
  • The project the investor is planning to invest in is to be selected.
  • Then the project page is to be referred for the search of the APF number.
  • If it is not possible to get the Approved Project Financial number in online, then contact the builder directly to get the necessary information.

The Approved Project Financial number confirms sound legal and technical credentials associated with a project. The investor must check this number before finalising their homebuying decision.

Be it residential property or any other property developed by the builder, all the housing projects must have APF numbers assigned to them by one or more lenders.

The Need of Checking APF Number & It’s Importance Before Buying a property

The proper verification of the APF number is a must before making a purchase.

  • The Approved Project Financial number guarantees that the real estate project has been carefully examined for compliance and financial feasibility. It is an indicator of regulatory approval.
  • It enhances the investors confidence on the project’s stability, openness, and compliance on all legal fronts
  • The projects have already gained the faith of financial institutions, indicating that the property makes for a safe investment. The lenders and banks will trust the property and will be more open to grant homebuyers the required home loan to invest in it.

Conclusion

  • The legal perfections of the APF number should be consulted with the reputed legal professionals. It will shed light on the project’s validity.
  • Reputable developers will follow legal requirements and provide authentic details about the Approved Project Financial number.
  • The double-check of project documents, including the APF number will reflect all legal and financial standards of a project.
  • A unique Approved Project Financial number enhances customer confidence on a project.
  • The developer may be working on several different projects at a time. So, the investor can visit the website, pick the project of his choice or the project that piques his attention, and find the Approved Project Financial number.
  • It is always better to avoid projects that do not have their own APF Number.
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