1. When can one apply for a home loan?
Ans. Once a person has decided to buy or construct a property, he/she can apply for a loan anytime thereafter, even if the property has not been selected or the construction has not begun. Besides, loans are also available for home improvements, renovation or extension of home.
2. What is the maximum amount that can be borrowed to buy/construct a house?
Ans. Usually the loan amount granted is 75-85% of the total asset value. The amount of loan varies from institution to institution and it may vary from Rs.1 lakh to Rs.1 crore. The maximum amount, which one can borrow, is a function of many factors, which includes primarily the purpose of the loan. In addition, ones residential status whether resident in India or non-resident will also have a bearing on the maximum amount of loan that one can borrow. Generally, if one is a resident Indian, then he can borrow upto 85% of the cost of the property
3. What are the repayment period options?
Ans. Repayment period options range generally from 1 to 20 years. A few lenders also offer a 30-year repayment period, usually at a higher interest rate. As a non-resident, you can avail of a loan for a maximum period of 15 years.
4. What are the documents banks/housing finance corporations (HFCs) need, in order to give Home Loans?
Ans. Documents required from a salaried employee:
- The latest salaries slip showing statutory deductions.
- Form 16 ( showing tax deducted at source by employer)
- Proof of age (birth certificate/voter identity card/passport/ school-leaving certificate/valid driving license)
- Proof of residence (phone bill/electricity bill/ration card)
Documents required from a self- employed person:
- Computation of income fro the previous two years, certificate by a Chartered Accountant.
- Profit & Loss Account and Balance Sheet for the previous two years, certificate by a Chartered Accountant.
- Proof Of Age(birth certificate/voter identity card/passport/ school-leaving certificate/valid driving license)
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Home Loans for Non-Resident Indians (NRIs)
We are glad to inform you that Nukala Constructions will be assisting you in providing home loan from the bank of your choice. A general information about the Home loan product available with different banks is provided to you below, Please go through the same and contact your Relationship Officer at Nukala Constructions for further details
FAQ’s and GENERAL INFORMATION ON HOME LOANS
1. Am I eligible to get a home loan?
Ans: RBI guide lines permits housing loan to NRIs (Non-Resident Indian) or PIO (person of Indian Origin) resident outside India for acquisition of a residential accommodation in India.
2.What is the maximum loan amount I can borrow?
Ans: You can avail of a maximum loan of 85% of the cost of the property, including cost of the land and registration charges etc., or the loan eligibility whichever is lower.
3.What is my loan eligibility?
Ans: Bank determines one’s repayment capacity depending upon the factors such as income, age, take home pay, qualifications, work experience, number of dependants, spouse’s income, assets, liabilities, stability etc. The applicant should have been in employment for a minimum period of two years.
Individual banks may consider 36 - 60 times annual gross salary as loan eligibility.
4.How do I apply for loan?
You can either directly contact the Bank executives or indicate your choice of Bank to the executive in Nukala Constructions and he can take you through the process.
5.What are the fees and charges payable and when are they payable?
FEES:
It depends on the choice of your bank and varies from time to time according to the bank’s policy. Normally a one time fee of 1.25% is payable on the loan amount applied for.
CHARGES:
A flat pre-payment charge of 2% to 4% would be charged for the borrowers who intend to shift their housing loan accounts to some other banks. However, there would not be any charges if the resources are of own funds.
6. What is the rate of interest that will be charged on my loan and what will be the Equated Monthly Installment (EMI)?
For the current rates of interest and EMIs please see the comparative Chart of the Banks enclosed here.
7. How would I make my payments?
Repayment should be made from inward remittances from abroad or out of funds in NRE / NRO Accounts
8.Should I give a GPA? If “yes” to whom?
GPA should be executed preferably on preferred bank format. It should be executed in favour of a resident Indian preferably blood related residing in Hyderabad
9.What is the procedure for giving a GPA?
You should execute GPA on the bank’s format, get notarized in the country where you live and then get it registered in India.
10.How do I execute the loan documents?
GPA will execute the loan documents
11.What are the supporting documents to be submitted along with an application?
- Copy of GPA.
- To provide a copy of latest appointment / employment letter
- Copy of full set of pass port with VISA validity stamp
- IT returns filed in the country of residence
- Salary slips for the last six months
- Overseas bank statement for the last six months
- E mail id of the controlling authority to ascertain employment confirmation / verification
- Employment contract (if the contract is in a language other than English, an English translation of the same attested by the Embassy/Employer should be given).
- Past occupational history.
- Identity card issued by current employers.
- Continuous Discharge Certificate (CDC) - (for applicants employed in the merchant navy).
- Latest Credit Bureau report. (Applicable to customers residing in countries where Credit Bureaus exists. eg. USA, UK etc. )
Property Related Documents:
- Receipts for payments made for purchase of the dwelling unit.
- Copy of approved drawings of proposed construction/ purchase/ extension.
- Agreement for sale / sale deed / detailed cost estimate from Architect / Engineer for property to be purchased/constructed/ extended/improved.
- Allotment letter from the co-operative society / association of apartment owners.
( Where ever necessary, Nukala Constructions has already submitted the required documents to all the banks)
Additional documents to be submitted by PIOs
A photocopy of PIO Card. If the individual does not have a PIO Card, photocopies of any of the following are to be submitted.
- Photocopy of the current Passport indicating birthplace as ‘INDIA’.
- Photocopy of Indian passport, if held by the individual earlier.
- Photocopy of parents/grandparents Indian Passport/birth certificate/ marriage certificate substantiating the individual’s claim as a person of Indian origin.
12. Who can be co-applicants?
Proposed owners of the property, in respect of which you are seeking financial assistance will have to be co-applicants. However, all co-applicants need not be co-owners.
13. What is the maximum term in which I can repay the loan?
The term of repayment of the loan is from 5 years to 20 years. It differs from bank to bank.
14. When do I start to repay the loan?
You repay the loan in Equated Monthly Instalments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement. EMI is payable every month, by the end of that month.
In respect of the period prior to commencement of EMI, you pay interest on the amount of the loan disbursed. This interest is called Pre-EMI interest. Pre-EMI interest is payable every month, by the end of the month, from the date of each disbursement upto the date of commencement of EMI. Pre-EMI is calculated at the same rate at which EMI is calculated.
Payments for fees, charges and pre-EMI interest should be remitted to BANKS from abroad through normal banking channels or from the Non-Resident (External) Account/Non-Resident (Ordinary) Account/NRSR Account in India.
EMI payments are to be made through post dated cheques or standing instructions from your Non-Resident (External) Account/Non-Resident (Ordinary) Account/NRSR Account in India.
Cash payments will not be accepted.
15. Do I have flexibility in repayment terms?
BANKS offers you various flexible repayment options like Step Up Repayment Facility (SURF), Flexible Loan Installment Plan (FLIP), Balloon Payment Plan and Structured Repayment Plan. These flexible repayment options give you the freedom to structure the repayment schedule to suit your individual needs.
16. What security will I have to provide?
Security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary.
17. When can I take disbursement of the loan?
You can take disbursement of the loan after the property has been technically evaluated, all legal documentation has been completed and you have invested your own contribution in full. Own contribution is the total cost of the property less BANKS’s loan. The disbursement would be in Indian Rupees and made at the BANKS branch specified by you.
18. In how many instalments can the loan be disbursed?
The loan will be disbursed in full or in suitable instalments and on a disbursement request letter given by you and by time based schedule according to a builder’s agreement.
19. Can I repay my loan ahead of schedule?
Yes. You can repay the loan ahead of schedule, either in part or in full, by remittances from abroad through normal banking channels.
20. Does the property have to be insured?
Yes. You will have to ensure that the property is duly and properly insured for fire and other appropriate hazards, as required by BANKS, during the pendency of the loan. BANKS should be the beneficiary of the insurance policy. There are some banks who provide the insurance at free of cost.
21. Are these policies subject to change?
Yes. These policies will be reviewed periodically.
Please take photocopies of all documents that are submitted to BANKS (including application form) for your personal record |
