|Notes on eligibility
for Home Loans:
Some of the features of the loans
to Route the Amounts from the Foreign Bank Account
OF SALE PROCEEDS
citizens residing in India
||Any Indian Resident, Non-resident
Indian or Person of Indian Origin can apply for a home loan
if they are 21 years of age at the origin of the loan and 65
years or below at loan maturity. Housing Finance Companies (HFCs)
usually give home loans for properties located in India to people
who are employed or self-employed, with a regular source of
Loan eligibility is calculated
factoring into the ability to repay, income, age, qualifications,
number of dependants, spouse's income, assets, liabilities,
stability and continuity of occupation and savings history
are taken into consideration.
|The repayment of the loan is in Equated
Monthly Installments (EMIs), comprising principal and interest,
commences from the month following the full disbursement. Till
then, interest on the amount disbursed is charged, called Pre-EMI
interest and charged on the amounts disbursed in equated installments.
|The interest charged could be "fixed",
ie, remains same through out the duration of loan or "floating",
ie, changes according to the market rate, prevailing.
|About 85% of the cost of the property including
the cost of land is given as loan for varying periods of 5-20
|Based on the repaying capability
criterion, generally the amount is up to 2.5 times the gross
annual income, equated monthly installments not exceeding 35
per cent of the gross
The following documents are to be produced
for completing the loan formalities:
Latest three months Salary Slip
Six months Bank Statement till date (Salary Account)
Two Passport Size Photographs (colour)
Address Proof - Passport Copy/Telephone/Electricity/Water
Age Proof (Passport Copy) or Higher Secondary School or any
Processing Fee according to the norms of the HFC, usually
2.5% of the loan being sanctioned.
Employment Certificate together with the monthly Income Certificate.
|A first mortgage of the property
to be financed. The Sale Agreement entered into with the Builder/Purchaser
in original to be submitted to the HFC. If required collateral
security as required by the HFC need be submitted. Or the spouse
or the immediate family member with independent income may be
joined as Co-applicant for covering the entire loan amount required.
||NRIs can avail of financing
assistance in the form of housing loans, for purchasing residential
properties in India. These loans are available through leading
financial institutions like HDFC, LIC, Canfin Homes, Citibank,
ANZ Grindlays, Vysya Bank, SBI, Corpbank and ICICI.
||Some of the features
of these loans are:
The applicant must
be an Indian passport holder.
Loan amounts are available up to Rs 1 crore (or 85%) of the
cost of the property, whichever is lesser. Processing and
administrative charges extra.
Loan eligibility is decided by the repayment capacity of the
individual. Repayment capacity takes into consideration income,
age, qualification, number of dependents, other income, amounts
and a few other items.
Between 5 and 10 years, rates of interest vary from 7.75%
Repayment period ranges from 5 to 20 years or on superannuation
or on completing 60 years of age.
The loan is repaid in the form of Equated Monthly Installments
The security for the loan would be the equitable mortgage
of the property financed. This is created by the deposit of
the original title deeds of the property with the HFI.
Local guarantors will also be required in the case of a few
A salaried applicant should be abroad for at least a year,
and a self-employed applicant for 3 years.
Copies of the following documents have to be submitted along
with the application for the loan to the institution.
Employment contract- Latest salary slip
Latest work permit- Visa stamped on the passport
Power of Attorney to a local individual
Receipt of payments made for purchase of the property
Agreement of Sale
(Above to be certified by a Town Notary or Indian Embassy
or Consulate of the Country of Residence)
|In case the person
is self-employed or has his own Business:
||i)Profile of the Company or
nature of Self-employment
ii) Credit Rating Certificate of the Business by an overseas
iii) Registration Certificate of the Company together with Memo.
iv) IT Returns of the past three years of the Business.
v) Qualifications and no. of years in business.
(To be certified by a Town Notary or Indian Embassy/Consulate
of the Country of Residence)
to Route the Amounts from the Foreign Bank Account
||(In case, the amount of flat/installment
is proposed to be transferred by wire)
We have a Current Account in Bank of India, SSI Branch, #28,
I Floor, Madivala, Hosur Road, Bangalore-560 068.
Routing is to be done as follows:
BKIDUS 33A XXX- Bank of India, New York Branch
BKIDINBBMOS- Bank of India, Chennai Overseas Branch
||NRI RBI Guidelines
||I. PERMISSION FOR PURCHASE OF RESIDENTIAL
PROPERTY / COMMERCIAL PROPERTY.
1. NRIs holding Indian passports - No permission required
2. NRIs holding foreign passports - Intimation to RBI via form
IPI - 7 within 90 days of purchase of property or final payment
Funds Through NRE / NRO accounts.
||II. SALE OF PROPERTY
1. Property held by NRIs in India can be sold. No permission
is required from the Reserve Bank of India.
REPATRIATION OF SALE PROCEEDS
||1. Repatriation of proceeds
from sale of residential property purchased on or after 26th
May 1993 is allowed.
2. The RBI will consider repatriation of the consideration amount
remitted in foreign exchange for the acquisition of 2 properties.
The sale has to have taken place after 3 years from the date
of final purchase deed or from the date of final payment.
3. Application of repatriation (IPI-8) has to be done within
90 days of the sale of the property.
4. NRIs can let out immovable property in India. The rental
income from the investment has to be credited to the NRO account
(Subject to changes from time to time).