What is the Full Form of APF?

The full form of APF is Approved Project Financial. An Approved Project Financial (APF) number is a distinctive numerical code provided by an affiliated bank or an authorized financing company involved in infrastructure, real estate development, and home loans. Every housing project is assigned a unique APF number.

A housing project affiliated with an APF number signifies that the financing institution (bank or agency) places their trust in the project. It also indicates that all formal paperwork and important documents have been satisfactorily processed. 

A project must earn the trust of financiers and obtain its proper APF number, allowing banks to verify its legitimacy and potentially approve additional loans. This ensures the project’s legality, as only those scrutinized and approved by banks and relevant KYC requirements receive the necessary approval.

Importance of APF

Let’s have a look at the importance of APF:

• A valid APF code or number is essential for every project developed by a developer. 
• Housing finance companies (HFCs) or banks issue the APF number to confirm that the project has obtained all necessary approvals, instilling confidence in property buyers. 
• Developers often collaborate with HFCs or banks that offer housing loans to clients, and the APF code streamlines the loan application process, reducing documentation time. 
• Inquiring about the APF code from the developer is crucial as it ensures the property/project is registered and approved by an HFC or bank. 
• Having an APF code enables people to easily access housing loans, making it a convenient and reliable investment choice.

How do banks allocate APF numbers?

Many banks prefer real estate developers with a long track record of completing projects on time, typically two to three projects. Construction quality also plays a vital role in their consideration. 

However, banks avoid dealing with builders listed in the RBI’s negative category. The project size, specified in square feet, is crucial during construction. An agreement is signed between the HFC or bank and the developer, often including a clause detailing actions after the construction period ends.

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