RERA Registration Compulsory for Loans. Registration compulsory under RERA for developers if they want loans from banks. As per the report in a reputed newspaper banks have decided they will not provide credit to unregistered builders after discussions with the Reserve Bank of India. Banks want a stronger security mechanism, and have even suggested keeping personal properties of promoters of some real estate firms as additional collateral.
RERA 2016 had come into force on May 1. Many states diluted the rules before implementing RERA. Some big real estate companies have even urged central and state governments for greater clarity on RERA rules.
Builders will have to register with RERA now to get loans, under RERA, there are fines and penalties if a developer does not adhere to delivery guidelines, including existing projects. The Act ensures that you can secure interest as penalty from your builder at the prescribed rate. The rate of interest may vary from state to state.