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A.

Indian 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 income.

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 years.

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 bill
Age Proof (Passport Copy) or Higher Secondary School or any equivalent Certificate

Form 16

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.

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B

Non-Resident Indians

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.

C

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% to 9%.

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 (EMIs).

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 institutions.

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)

D

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 Agency.

iii) Registration Certificate of the Company together with Memo. Of Articles.

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)

E

How 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, Balaji Complex,
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

F

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 of consideration.
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.

G

III 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).