APF number: Meaning, significance and how to find APF number

What is the full form of APF in home loan?

Approved Project Financial (APF) number is issued by an affiliated bank to the authorised developer of projects.

What is an APF number?

Each home development gets its unique APF number. APF number stands for the approval that a bank gives regarding the realty project with respect to its paper work, the various approvals it has got, the loan approvals etc. So, when a housing development is assigned an APF number, it shows that the financing institution (bank or agency) has full faith in the development. 

A valid APF number or code must be associated with each of a developer’s projects. Housing Finance Companies (HFCs) or mortgage lenders will often provide the APF Number. Having an APF Number/Code means the developer has been legitimately vetted, and the project is safe for homeowners to invest in.

See also: Know importance of using correct IFSC Code for transactions

APF: What is the process for creating an individual APF number?

Developers must provide all required documentation, such as government clearances, No Objection Certificates (NOCs), title deeds, sale deeds, authorised blueprints, and freehold/leasehold documentation, to establish that their projects have all relevant licences and approvals. Developers must also submit proof of permission from relevant agencies such as forest, pollution, fire, and electrical authorities. 

The bank also does a Know Your Customer (KYC) check on the contractor in addition to reviewing these documents. Banks and housing financing organisations provide an APF number after thoroughly vetting the project’s legality and technical viability. If the developer has an APF number, it means they plan to deliver the apartment or other property by a certain date.

What if a project does not have an APF number?

If the developer does not provide the APF number, then the project may not have proper authorisation. Homebuyers should see this as a red flag and look into it thoroughly. Before committing to a property purchase, double-check this figure.

APF: How does one get an APF number?

Developers must provide evidence that their projects have received all necessary approvals and permits, such as government clearances, No Objection Certificates (NOCs), Title Deeds, Sale Deeds, Approved Plans, and Freehold/Leasehold paperwork. Authorities such as the forest service, pollution board, fire department, and energy board all need to approve a project before it can be built.

APF: To what criteria do financial institutions assign APF numbers?

Banks are more likely to work with contractors that have been in the construction sector for a while and have a history of completing projects on time. This is especially true for contractors who have completed at least two or three projects. The quality of the structure itself is also important. There should be a number of other respectable banks and organisations that have given their stamp of approval to the project. Banks in India will not work with any developers on the Reserve Bank of India’s “negative list”. The square footage of any current or future building projects should be included as well.

How to find the APF number of a project?

If you need to verify the APF number, just follow these simple steps:

1. Look to the constructor’s website for further information.
   
2. Find the project’s APF number quickly using a search engine.
3. You may also ask the builder directly for the APF number by making offline contact with them.

APF: Significance of the APF number

For many banks, it is easier to feel comfortable giving money to projects that are being led by the Approved Project Finance (APF). What makes the APF safe is the fact that getting it is itself a secure process. Additionally, projects that have been granted an APF digit are assigned a special identifier by government institutions like the State Bank of India (SBI). This may be double-checked on the bank’s main website. This is done only after the bank has confirmed the legitimacy of the NOC received from the relevant authorities. Before investing money, they investigate the project’s legitimacy and feasibility from a legal and technical standpoint.

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