What are Bank Approved Housing Projects | Kotak Mahindra Bank

16 JUNE, 2025

Geeta and Vedika wanted to buy a house in Mumbai. When Geeta applied for a home loan, her application was processed within a week. But it took several weeks for Vedika to get approval and buy her dream home. When Vedika raised this issue with the lender, she was told that Geeta's house is included in the list of the bank-approved housing projects and so, her application was processed faster. Unfortunately, Vedika didn’t know about this and had to wait for approval and disbursal.

So, you see, having a bank-approved housing project helps you get Home Loans quickly. Let’s learn more about it in detail.

What is Bank Approved Housing Projects?

Projects that have been approved and verified by banks are called bank-approved projects. Banks carry out extensive due diligence on such projects to ensure that their title and legality is uncompromised. Banks also inspect the construction, blueprint and building plan to ensure that it follows all the necessary compliances and permissions. Usually, the builders request the banks to inspect and approve the projects to make them more marketable for buyers.

When you buy a house from a bank approved housing project, you can be assured that it is free from legal complications or property issues. If you buy a house in such properties, you can avail a home loan with the same bank. It reduces the duration of the verification process and makes the approval faster.

Explore over 2,000 bank-approved housing projects across 22 cities with Kotak Mahindra Bank. Enjoy quick approvals and a hassle-free Home Loan experience.

Benefits of Buying a Home in a Bank Approved Housing Projects

Own a home with trusted developers

When you buy a house in such projects, you need not worry about getting cheated or making a wrong deal. You can be assured that the builder is trustworthy. Moreover, you will not face any issues in the project’s legal, technical or financial matter. Similarly, as the banks are involved in such projects, the builder is bound to fulfil all the promises made in the agreement.

Quick Loan Disbursal

If you take the home loan with the same bank, you get approval much faster. Since the bank has already completed technical and legal due diligence on the project, there is no need for additional verification. Once you submit the documents required for home loan with the application, the bank reviews the progress of the construction and release the money accordingly. Often banks also lend money to the builder to ensure that the project is completed timely.

Faster Processing

Since the project is already vetted, banks skip the lengthy verification of legal and technical aspects. Your loan is processed faster than it regularly takes, and you can fulfil your other property-related documentation swiftly.

Better Loan Terms

Some banks may offer preferential rates, lower processing fees, or flexible repayment terms for approved projects. Make sure to check for these terms when you are researching bank-approved housing projects.

Higher Loan Eligibility

With the property risk reduced, borrowers can qualify for higher loan amounts. This means you can upgrade your housing plans one step further with better loan amounts.

How to opt for a Bank-Approved Housing Project?

Now that you know about the benefits of bank-approved housing projects, let’s understand how you can opt for the same:

Most banks have a list of approved housing projects on their website or at branches. Always ask the lender for this list before deciding.
Confirm with the developer if the project is approved by banks and their names. Multiple approvals are a good sign.
Ensure all legal documents (title deed, land ownership proof, clearances) are in place, even if it’s a bank-approved project.
A physical inspection can help you verify construction progress, location, and amenities.
Opt for projects from reputed developers with a history of timely delivery and quality construction.

How Does a Bank Approve Housing Projects?

Banks follow a strict process before approving a housing project. It includes:

In due diligence, the bank verifies land titles, ownership rights, and regulatory clearances.
Then they assess building plans, structural quality, construction methodology, and adherence to local norms.
After that, the builder’s financial stability, market reputation, past delivery record, and pending litigation are reviewed.
The bank conducts a physical inspection to check the property’s progress and match approvals with actual construction.
They also check for RERA registration, environmental clearances, municipal approvals, etc.

After verifying all these parameters, the bank grants approval to the builder.

Types of Bank-Approved Projects

Bank-approved housing projects typically fall into these categories:

New residential projects by reputed developers.
Under-construction projects that are still in progress but approved after legal and technical evaluation.
Completed projects that meet compliance and structural standards.
Redevelopment or joint-venture projects undertaken by builders in partnership with landowners or housing societies.
Affordable housing projects like PMAY-linked projects are often fast-tracked by banks.

How to Check if a Project is Bank-Approved?

Here are a few simple ways to verify a project’s bank approval status:

Bank Website: Many banks publish lists of approved projects online.
Bank Branch: Visit a nearby branch and request the latest list of approved projects.
Ask the Developer: Reputed builders maintain documentation of approvals received from various banks.

While it is usually beneficial to buy a house from a bank’s approved housing projects, you must note that the bank does not take responsibility for project delays. Therefore, if you do not get possession of the house on time, you could have to pay the rent and EMI at the same time. These houses could also be priced more than the market rate. Therefore, be sure to consider all the relevant factors before investing in such housing projects.

Now you can opt for affordable Home Loans and choose from a diverse range of bank-approved housing projects with Kotak Mahindra Bank. Click here to access the list of approved properties.

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FAQs

Are RERA-Registered Projects Automatically Bank-Approved?

No, RERA registration does not mean a project is bank-approved.

RERA ensures that a project complies with regulatory norms such as land title, approvals, and construction deadlines. On the other hand, banks conduct independent due diligence beyond what RERA requires.

Can I get a home loan faster if the property is bank-approved?

Yes. If the property is part of a bank-approved housing project, the home loan process is faster. Since the bank has already conducted legal and technical checks on the project, your application might skips those steps.

Is it safer to buy in a bank-approved project?

Yes, bank-approved projects undergo thorough due diligence covering land titles, legal clearances, construction plans, and the builder’s credibility. While it doesn’t guarantee on-time delivery, it reduces the risk of legal complications or fraud.

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What is Bank Approved Housing Projects? Meaning, Features & Benefits Explained