HDFC Home loans to NRI's, PIO's and OCI's for purchase of residential property in India. Avail property search and NRI Loan advisory services from HDFC.com.
Saturday, 28 January 2017
Thursday, 19 January 2017
Choosing a Mortgage Lender
Your work might have taken you abroad but the yearning for the homeland remains unabated. With HDFC Housing Loan For NRI turning your dream home in India, into a reality, is convenient and easy.
Friday, 13 January 2017
SHOULD I REPAY MY LOANS EARLY?
HDFC Home loans to NRI's, PIO's and OCI's for purchase of residential property in India. Avail property search and NRI Loan advisory services from HDFC.com.
Tuesday, 10 January 2017
Benefits of a joint home loan
HDFC Housing loan for NRI, PIO's and OCI's for purchase of residential property in India. Avail property search and home loan advisory services from HDFC.
Monday, 9 January 2017
Know Home Loans Housing Loan Finance In India
Saving up
for your dream home? Home Loans can make this dream a reality. Below are the
FAQ’s before going in for a Home Loan.
What is a
Home Loan?
Home Loan or
funding in the project to the buyer is one of the most important factors for
the sales of the property. 95% of the properties are bought on home loans, with
the increase of all white transactions in Indian market some of the buyers are
forced to take home loan as they don’t have sufficient money to pay the
builder. Normally the loan provided in case of a residential property is
maximum up to 75% of the property value and in case of commercial loan property
it is around 60% of the property value. NRI’s are not eligible for commercial
loans. The banks never finance 100% of the property value as they want to keep
margin money as a security in case there is a default from the buyer of the
property or if the market crashes and the existing vale of the property goes
down.
What are the
different types?
Through a
Home Loan, one can purchase or construct a new house/ apartment; a Home
Improvement loan is offered to those who wish to renovate their houses; a Home
Extension loan is for consumers planning to add extra space to their house such
as a new room or a new wing; a Loan against Property is offered for a
individuals seeking loan against an already existing property; a Land Purchase
Loan is provided to consumers buying land as an investment, maybe to build a
house later on and a Balance transfer loan is basically a home loan to pay off
an existing housing loan for nri as this enables you to avail a loan with a
lower interest rate.
What is the
typical repayment duration?
Home loans
are given for a minimum period of 1 year and maximum period of 30 years; the
tenure of loan depends upon the age of the individual. The maximum age for
taking a loan is 65 years i.e. if someone is 55 years old then he or she can
take a loan with tenure of maximum 10 years. If somebody wants to increase the
tenure he has to make a co-applicant (Family member) with a younger age.
What are the
types of interest rates?
The Rate of
Interest on housing loan for nri depend on repo rate, reverse repo rate &
CRR (Cash Reserve Ratio), all the three are governed by RBI, changes in any of
the three leads to the change in PLR (Prime Lending Rate) which leads to the
change in rate of interest. PLR is normally reset in every three months.
Rate of
interest are of three types –
Fixed rate
of Interest - which means that the rate of interest is fixed for entire tenure
and is not affected by the change in PLR.
Floating
Rate of Interest – which means the rates of interest varies with the market
condition and changes with the change in PLR.
Fix Loty(Partly
fixed & Partly Floating) Rate of Interest: - which means that the rate of
interest is fixed initially for the first 2 to 3 years and then gets converted
to floating rate of interest.
What are the
tax benefits on Home Loan?
There are
certain tax benefits available on your Home Loan. The Interest paid on housing
loan for nri is eligible for an exemption for income tax purpose, the
maximum exemption allowed in a financial year is 150,000/-, however no
exemption is
allowed to
the person in case of a under construction property. The buyer can claim the
exemption after the completion of the property equally in the next 5 years
after completion. For example the possession of the property happens in 3 years
and you took the loan in 1st year and paid interest of 25,000 in the first
year, 35000 in the second year and 40,000 in the third year, the total interest
paid by you in three years before completion will be 100,000. Now you can claim
it equally in the next five years i.e. 20,000 each, in the fourth year if you
pay an interest of 60,000 then you can claim an exemption of 80,000 (60,000+20000),
the maximum exemption cannot exceed Rs.150,000 in a financial year.
NRI’s don’t
get any income tax benefit for the interest paid on home loan.
Process of
Sanctioning and disbursal of Home Loan
Sanctioning
of Loan: - A buyer depending upon his classification i.e. salaried,
self-employed, NRI needs to deposit all the documents required with the
respective bank from which he needs to take the loan. Bank does its legal
formalities and takes around 7-10 working days for the sanctioning of the loan
if the buyer is found eligible; if the loan is not sanctioned then all the
documents are returned to the buyer.
Disbursement
of Loan: - Bank normally takes around 7-10 working days for the disbursal of
the loan once it is sanctioned. The following documents are required by the
bank for disbursing the loan: -
Original
documents of the property – Builder Buyer Agreement, Allotment Letter &
original payment receipts.
Lien mark
Letter: - It is a request letter by the buyer of the property to the builder of
the property allowing taking a loan.
Permission
to Mortgage: - This document is required by the bank from the builder that the
builder has no objection in allowing the buyer to take a loan on the said
property.
No Objection
Certificate (NOC): - In many cases a builder takes a loan for a bank for the
complete project i.e. the entire project is mortgaged with some bank by the
builder. In this case if a buyer wants a loan then a NOC is required from the
first bank by the second bank.
Indemnity
Bond: - This is normally required by the bank in case of down payment cases, it
says that the bank will not be responsible if something goes wrong with the
project in future for example if the project is scrapped then the bank has full
right to recover the loan from the buyer of the property.
Tripartite
Agreement: - It’s an agreement made between the builder, bank & the buyer
mentioning the terms and condition of the purchase.
Documents required
by the Buyer of the property For Approval of housing loan for nri (NRI’s)
Only NRI (Non
Resident Indian), PIO (Person of Indian origin) and OCI (Overseas Citizen of
India) can take home loan in India
Employment
Contract
Latest work
permit
Visa stamped
on passport
Salary slips
for past 6 months
Overseas
Bank Statement for past 6 months
NRE/NRO Bank
Statement for past 6 months
ID card by
employer
Official
Email Id
Credit
Bureau Report
Company
Profile
Continuous
Discharge Certificate (in Merchant Navy cases)
Power of Attorney
as per Bank’s format, it’s mandatory for a NRI’s to give his Power of Attorney
to any of its family member or friends for availing housing loan for nri.
Important
Points Relating to home loan
Co-applicants
can be only in blood relation, the idea is clubbing the income of the applicant
and co-applicant so as to facilitate them to get a higher loan amount, however,
combinations of father – daughter & brother – sister are not allowed but
combination of husband & wife is allowed.
A buyer can
avail only three home loans at one time.
NRI’s don’t
get any income tax benefit for the interest paid on home loan.
NRI’s, PIO,
OCI living in some particular countries are barred from taking housing loan for
nri for example NRI/PIO/OCI of Pakistan, Bhutan, Bangladesh, Afghanistan, Sri Lanka
etc. are barred from home loans in India
Self-employed
NRI’s don’t get home loans for buying Indian Property.
Funding of a
project from nationalized banks normally starts at the advanced stage of the
project.
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