Resale Flat Loans in Chennai: The RBI Plan Affidavit and Architect Check Explained

A couple in Chennai has found a 12 year old two bedroom resale flat they like. The price is agreed, the seller is ready, and the bank has sanctioned a home loan in principle. Then the loan officer asks for something the couple did not expect: a sworn affidavit that the flat was built as per its sanctioned plan, and a visit from an architect appointed by the bank before a single rupee is released.

Those requests are not a lender being difficult. They trace back to conditions the Reserve Bank of India has asked banks to follow on housing loans for built up property. This guide explains what those conditions say, why they exist, and how a Chennai buyer of a resale or ready flat can prepare for them before signing a sale agreement. It is buyer guidance on loan paperwork, not legal advice on any specific property.

The short answer. RBI's April 1, 2025 Master Circular on Housing Finance says a buyer seeking a bank loan for a built up house or flat should declare by affidavit-cum-undertaking that it was constructed as per the sanctioned plan and/or building bye-laws and, as far as possible, has a completion certificate. An architect appointed by the bank must certify before disbursement that the property is strictly as per the sanctioned plan and/or bye-laws, and no loan should be given for properties in unauthorised colonies unless they have been regularised and charges paid. The trade-off: these checks protect you as well as the bank, but they can delay disbursal if the seller cannot produce plan approvals, so gather papers before you pay an advance.

What exactly does the RBI circular require for a built up flat?

Three conditions matter most to a resale buyer. Paragraph 2(B)(vii) of the Master Circular says banks are advised to adhere to certain conditions in light of observations of the Delhi High Court on unauthorised construction.

For a loan to purchase a built up house or flat, the circular says it should be mandatory for the applicant to declare by way of an affidavit-cum-undertaking that the built up property has been constructed as per the sanctioned plan and/or building bye-laws and, as far as possible, has a completion certificate also. It adds that an architect appointed by the bank must also certify before disbursement of the loan that the built up property is strictly as per the sanctioned plan and/or building bye-laws.

The same paragraph says no loan should be given in respect of properties which fall in the category of unauthorised colonies unless and until they have been regularised and development and other charges paid. A separate condition says no loan should be given for properties meant for residential use which the applicant intends to use for commercial purposes and declares so while applying.

Why does the affidavit put the burden on the buyer?

Because the declaration is made by the person applying for the loan, which is you, not the seller or the builder. You are asked to state that the flat was built as per the sanctioned plan. That is a statement you can only make responsibly if you have seen the plan and compared it with what is on the ground.

In practice, that means asking the seller early for the approved building plan, the planning permission or building permit reference, and any completion or occupancy document for the building. If the seller cannot produce them, you will struggle to sign the affidavit truthfully, and the bank's architect may not be able to certify the property either. Our Chennai guide to what happens after an occupancy certificate is issued covers how those documents fit into a new project's handover; for a resale flat, the same papers should exist from the original construction.

How do the RBI conditions compare at each stage?

The table sets out each condition from the circular, when it bites, and what a Chennai resale buyer can do ahead of time. The first two columns restate the circular; the last three are practical steps.

What does the bank's architect actually check?

The circular states the outcome, not the method: the architect must certify that the built up property is strictly as per the sanctioned plan and/or building bye-laws before the loan is disbursed. How a bank runs that inspection, and what it accepts as evidence, is set by its own processes.

For a buyer, the sensible assumption is that the architect will compare the approved plan with the flat and the building. Changes made by earlier owners, such as enclosed balconies or merged rooms, could come up during that comparison. Ask the seller directly whether any structural or layout changes were made, and ask your lender which documents its architect will want to see. Raising it early is far cheaper than discovering a problem after you have paid an advance.

Timing matters too. Because the circular places the architect's certificate before disbursement, the loan money cannot reach the seller until that step is done. If your sale agreement fixes a short window for the balance payment, a delayed inspection can put you in breach of your own contract. Build in a buffer: agree a payment schedule that runs from the date the bank confirms disbursal, not from the date you sign, and keep the seller informed of the inspection date so access to the flat is not a last minute problem.

What if the building has no completion certificate?

The circular's wording is that the property should, as far as possible, have a completion certificate. That is softer than an absolute requirement, so a lender may still consider a loan without one. But it is a question you want answered in writing before you commit.

Ask your lender two things: whether it will lend on this flat without a completion or occupancy document, and what alternative evidence it would accept. Our explainer on the difference between commencement, completion and occupancy certificates sets out what each document is meant to show, which helps when a seller offers one in place of another.

A seven-point checklist for a Chennai resale flat loan

1. Ask the seller for the approved building plan and permit reference before you agree on an advance.
2. Ask for the completion or occupancy document for the building, and note if it is missing.
3. Ask the seller in writing whether any structural or layout changes were made to the flat.
4. Check whether the layout was ever unapproved, and if so, collect the regularisation order and receipts.
5. Ask your lender for its list of documents for the affidavit-cum-undertaking on a built up property.
6. Ask your lender when its architect will inspect and what access the architect needs.
7. Make your sale agreement's payment dates allow time for the architect's certification before disbursal.

Is this circular still the rule your bank follows?

It is the most recent consolidated RBI housing finance text we could open, but read it with one caveat. The circular states that it only consolidates instructions issued up to March 31, 2025 and contains no new instructions. RBI's website also lists the Commercial Banks Credit Facilities Directions, 2025, which the site shows as updated on October 1, 2026.

The circular applies to scheduled commercial banks, excluding regional rural banks. If you are borrowing from a housing finance company or another type of lender, its own rules and credit policy will govern. Also be clear about intended use. The circular says no loan should be given for a property meant for residential use which the applicant intends to use for commercial purposes and declares so while applying. If you plan to live in the flat, say so plainly on the application. Either way, the practical takeaway does not change: assume your lender will want proof that the flat matches its sanctioned plan, and start collecting that proof from the seller before you sign anything binding.

Frequently asked questions

What does RBI's housing finance circular say about loans for a ready flat?

RBI's April 1, 2025 Master Circular on Housing Finance says that where an applicant seeks a loan to buy a built up house or flat, it should be mandatory for the applicant to declare by affidavit-cum-undertaking that the property was constructed as per the sanctioned plan and/or building bye-laws and, as far as possible, has a completion certificate.

Will my bank send an architect to check the resale flat?

The same circular says an architect appointed by the bank must certify, before disbursement of the loan, that the built up property is strictly as per the sanctioned plan and/or building bye-laws. How your lender carries this out in practice is set by its own process, so ask it to explain the steps.

Can I get a bank loan for a flat in an unauthorised layout?

The circular says no loan should be given for properties in the category of unauthorised colonies unless and until they have been regularised and development and other charges have been paid. Check regularisation papers with the seller and your lender before you pay any advance.

Is the 2025 Master Circular the latest RBI text on this?

The circular says it only consolidates instructions issued up to March 31, 2025 and contains no new instructions. RBI's website also lists the Commercial Banks Credit Facilities Directions, 2025, shown as updated on October 1, 2026. Ask your lender which current provision governs its property checks.

Last updated 2026-11-03. PropNewz Team.