I recently got an offer letter for OCBC bank for property under construction DIBS project 4 yrs, but some clause look funny, is it common, if you are getting offer letter from OCBC bank for under cons project, do u have similar term?


"Availability Period of the Term Loan
48 months from the date of this letter or such other period as may be prescribed by the Bank. Any amount not drawdown during the Availability Period shall be cancelled."
>> mean the if the developer take more than 4yrs to complete, remaining amout after 4yrs not drawdown from bank will be bare by me. This make me feel unsecure & not get protected if the project get delay.


"Term loan
Commencement date of the 1st installment replayment:
- Shall commence on the first day of the calender month following the full release of the Term Loan or first day of the 49th month from the date of this Letter of Offer or upon you taking vacant possession of the property, whichever is earlier or such date to be determined and stipulated by the Bank."
>> This mean if the project get delay, i have to start serving my loan by paying the installment amount even the project not completed.

Please comment if u have similar term.