Lal Dora land villages are integral part of landscape in Delhi. Lal Dora land lands referred to those part of villages which are used for residential purposes and not for agricultural purpose. These areas were demarcated with a red thread around them. There are more than 360 villages in Delhi that come under Lal Dora land.
It is very difficult for you to get a loan against immovable property if you are having a Lal Dora land property. Most of the banks and big NBFCs don’t provide loan against lal dora property in Delhi. Banks usually have very rigid policies regarding loan against immovable property and even a slightest deviation from their policy can result in rejection of your loan application by banks.
Main reason for banks don’t providing loan against Lal Dora land property in delhi is the lack of approved maps from municipal authorities. If you want to get a loan against immovable property then, you need to have a property with approved maps and clear construction plan. Properties in Lal Dora villages are exempt from building by laws and construction norms regulations under Delhi municipal Act dated 1963. Moreover, Lal Dora villages are also facing problems like illegal construction, gross commercialization, bad infrastructure etc.
Though, meant for only residential constructions these villages are facing problems like rampant illegal construction and illegal development. These developments don’t follow any guidelines or rules. Basic premise behind a loan against immovable property is creation of a good mortgage. Due to reasons mentioned above, banks are unable to create a perfect mortgage and a clear title for the application for loan against Lal Dora land property in delhi. Hence, more often than not, banks and NBFCs rejects these applications for loan against property in lal dora.
But, it is not the end of the road for applicants living these villages. You can always reach out to certain HFCs ( House finance corporations) and peer to peer lending platforms to fulfill your need for loan against immovable property.