AVENUES
has tied up with the leading financial institutions in India to
offer home loan services to NRIs. This page offers the list of
documents required for availing of home loans and FAQs on home
loans. Also, you can apply online for home loans.
Employment/residency related documents:
Photocopies of:
-
Employment
contract (English copy if the contract is not in English,
attested by the Embassy/Employer).
-
Latest
work permit.
-
Details
of previous employment.
-
Identity
card issued by current employer.
-
Continuous
discharge certificate (CDC) – (for applicants employed
in the merchant navy).
-
Latest
salary slip/certificate.
-
Overseas
Bank Account Statement (four months).
-
Pages
with visa stamp on the passport.
Property
Related Documents:
-
Allotment
letter from the co-operative society / association of apartment
owners.
-
Receipts
for payments made for purchase of the dwelling unit.
-
Agreement
for sale / sale deed /detailed cost estimate from Architect
/ Engineer for property to be purchased / constructed /extended
/ improved.
-
Copy
of approved drawings of proposed construction/purchase/extension.
Additional
documents be submitted by Person of Indian Origin
Photocopy
of PIO card.
If the PIO card is not available,
photocopies of any of the following documents:
-
The
current passport, with birthplace as ‘INDIA’.
-
The
Indian passport, if held by the individual earlier.
-
Parents/grandparents
Indian passport/birth certificate/marriage certificate substantiating
the individuals claim as a person of Indian origin.
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Home
Loan FAQs (NRIs)
How
do I repay the loan?
You repay the loan in Equated Monthly Installments
(EMIs), which includes principal and interest. EMI repayment starts
from the month following the month in which you take full disbursement.
EMI is payable every month, by the end of the month from the date
of each disbursement up to the date of commencement of EMI. Pre-EMI
is calculated at the same rate at which EMI is calculated. EMI
payments are to be made through post dated cheques from your Non
Resident (External) Account/Non Resident (Ordinary)/Non Resident
(Special) Rupee Account (NRSR) in India.
Can I repay my loan ahead of schedule? Yes. You can repay the
loan ahead of schedule, by remittances through abroad through
normal banking channels, your Non Resident (Ordinary) / Non Resident
(Special) Rupee Account (NRSR) in India.
Does the Agreement For Sale have to be registered? In many states
in India, the Agreement of Sale between the builder and purchaser
is required by law to be registered. You are advised in your own
interest to lodge the agreement for registration within four months
of the date of the Agreement at the office of the Sub Registrar
appointed by the State Government, under the Indian Registration
Act, 1908.
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Investment
in Immovable Property In India
Section
3.1 of FERA generally governs the matters relating to immovable
properties and the work relating to permissions for purchase etc.
of immovable properties is centralised in the Foreign Investment
Division at Central Office of Reserve Bank of India at Mumbai.
INVESTMENT
IN IMMOVABLE PROPERTY BY INDIVIDUALS
Foreign
Citizen |
Indian
Citize |
Indian
Origi |
Non-Indian
Origi |
Resident |
Non-Residen |
Investment
made from local fund |
Investment
made from foreign fund |
Investment
made from local fund |
Investment
made from foreign fund |
No
Approval is required under FERA |
Invest
ment made from local funds |
Investment
made from foreign funds |
Prior
RBI permission require |
Prior
permission of RBI not require |
Permission
generally not given by RB |
Prior
permission from RBI require |
- |
No
approval necessary under FERA |
Declaration
in form IPI-7 necessary if repatriation facility require |
| |
Declaration
in form IPI- |
- |
Application
in form IPI- |
- |
- |
- |
| No
repatriation of sale proceed |
repatriation
of original Investment allowed after 3 years on applying
to RBI in form IPI- |
- |
No
repatria-
tion of sale proceeds |
- |
- |
repatriation
of original Investment allowed onapplying to RBI in form
IPI8 |
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Foreign
citizens of Indian origin
For
foreign citizens of Indian origin,different procedu reshave been
laid down depending on :
-
Whether
they invest their money in the form of Foreign Currency remitted
from abroad through normal banking channels or from funds
withdrawn from the NRE/FCNR accounts, or
-
From
local funds in Rupees.
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Frequently
Asked Questions for Non-Resident Indians
Q. |
Who
is an NRI? |
|
| A. |
Under
the Foreign Exchange Regulation Act of 1973, Non-Resident
Indians are:
Indian citizens who stay abroad for employment or for carrying
on business or vocation outside India or for any other purpose
in circumstances indicating an indefinite period of stay abroad.
|
|
| OR |
Government
servants who are posted abroad on duty with the Indian missions
and similar other agencies set up abroad by the Government
of India where the officials draw their salaries out of Government
resources. |
|
| OR |
Government
servants deputed abroad on assignments with foreign Governments
or regional/international agencies like the World Bank, International
Monetary Fund (IMF), World Health Organization (WHO), Economic
and Social Commission for Asia and the Pacific (ESCAP), |
|
| OR |
Officials
of the State Government and Public Sector Undertakings deputed
abroad on temporary assignments or posted to their branches
or offices abroad. |
|
| |
Guidelines
Issued by the Reserve Bank of India for grant of Housing Loans
to NRIs.
The Reserve Bank of India (RBI) has issued certain guidelines
for granting loans to Non-Resident Indians. The guidelines
are:
The loan amount shall not exceed 85% of the cost of the dwelling
unit.
Own contribution, which is the cost of dwelling unit financed
less the loan amount, can be met from direct remittances from
abroad only through normal banking channels, your Non-Resident
(External) [NR (E)] Account and /or Non-Resident (Ordinary)
[NR (O)] account and /or Non-Resident Special Rupee account
[NRSR] in India.
Repayment of the loan, comprising of the principal and interest
including all the charges are to be remitted from abroad only
through normal banking channels, your Non-Resident (External)
[NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)]
account and /or Non-Resident Special Rupee account [NRSR]
in India. |
|
| |
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to Top |
|
| Q. |
For what purposes are loans available to NRIs? |
|
| A. |
NRIs
can avail loan for buying or constructing a new home, extending
or improving an existing home or even to buy a plot. |
|
| |
|
|
| Q. |
What
is meant by "Own Contribution"? How can this "Own
Contribution be paid"? |
|
| A. |
Own
Contribution is the cost of the dwelling unit financed less
the loan amount. The own contribution should be met from direct
remittances from abroad through normal banking channels or
from the Non-Resident (External) Account/Non-Resident (Ordinary)
or the Non-Resident Special Rupee account in India. |
|
| |
|
|
| Q. |
What are the common documents to be submitted along with the
application? |
|
| A. |
The
following documents are required along with the application
form: |
|
| |
Photocopy
of the labour contract duly countersigned by your employer
(translated to English for non-English documents).
Latest salary certificate (in English) specifying the following:
Name (as it appears in the passport).
Date of joining.
Passport Number.
Designation.
Perquisites and salary.
Photocopy of labour card/identity card.
Photocopy of valid resident visa stamped on the passport.
Photocopy of monthly statement of local bank account.
Property related documents. |
|
| |
|
|
| Q. |
What security will I have to provide? |
|
| A. |
Typically
the security for the loan is 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. |
|
| |
In
addition interim security may be required, if the property
is under construction. Collateral or interim security could
be in the form of assignment of life insurance policies, surrender
value of which is at least equal to the loan amount, pledge
of shares and such other investments. |
|
| |
|
|
| Q. |
Can I give a Power of Attorney in favour of a person of my choice
in India to complete loan formalities on my behalf? |
|
| A. |
Yes. Normally it is desirable to appoint a Power of Attorney
in India to represent you in dealings in India. The Power
of Attorney should be executed as per drafts provided by the
housing finance company. The Power of Attorney can be given
to any person of your choice in India. |
|
| |
|
|
| Q. |
How do I repay the loan? |
|
| A. |
You
repay the loan in Equated Monthly Installments (EMIs), which
includes principal and interest. EMI repayment starts from
the month following the month in which you take full disbursement.
EMI is payable every month, by the end of the month from the
date of each disbursement up to the date of commencement of
EMI. Pre-EMI is calculated at the same rate at which EMI is
calculated. EMI payments are to be made through post dated
cheques from your Non Resident (External) Account/Non Resident
(Ordinary)/Non Resident (Special) Rupee Account (NRSR) in
India. |
|
| |
|
|
| Q. |
Can I repay my loan ahead of schedule?
|
|
| A. |
Yes. You can repay the loan ahead of schedule, by remittances
through abroad through normal banking channels, your Non Resident
(Ordinary) / Non Resident (Special) Rupee Account (NRSR) in
India. |
|
| |
|
|
| Q. |
Does the Agreement For Sale have to be registered? |
|
| A. |
In
many states in India, the Agreement of Sale between the builder
and purchaser is required by law to be registered. You are
advised in your own interest to lodge the agreement for registration
within four months of the date of the Agreement at the office
of the Sub Registrar appointed by the State Government, under
the Indian Registration Act, 1908. |
|
| |
|
|
| Q. |
Which
documents are to be verified before purchase of a Flat ? |
|
| A. |
Before
you purchase a flat, you have to have a title and document
search conducted by a competent advocate. You cannot do it
yourself. You have to use the services of a competent advocate.
It is a professional job to be done with professional assistance. |
|
| |
|
|
| Q. |
What is the difference between built up area, super built up area,
and carpet area? |
|
| A. |
Carpet
Area: This is the area of the apartment/building which does
not include the area of the walls. Built up Area: This includes
the area of the walls also Super Built up Area: This includes
the built up area alongwith the area under common spaces such
as the lobby, lifts, stairs, etc. This term is therefore only
applicable in the case of multi-dwelling units. |
|
| |
|
|
| Q. |
What are all the important documents one should check before buying
any property ? |
|
| A. |
If
you want to purchase a property, you have to look at the approved
layout plan, approved building plan, ownership documents,
carryout search, etc. Contact an advocate before you purchase
a property so that he can advise you. |
|
| |
|
|
| Q. |
Who
is liable to pay Stamp Duty-the buyer or the seller? |
|
| A. |
The
liability of paying stamp duty is that of the buyer unless
there is an agreement to the contrary. Section 30, of Bombay
Stamp Act, 1958 states the liability for payment of stamp
duty. |
|
| |
|
|
| Q. |
In whose name are the stamps required to be purchased ? |
|
| A. |
The
stamps are required to be purchased in the name of any one of
the executors to the Instrument. |
|
| |
|
|
| Q. |
What is meant by the market value of the property and is Stamp Duty
payable on the market value of the property or on consideration
as stated in the agreement ? |
|
| A. |
Market
value means the price at which a property could be bought
in the open market on the date of execution of such instrument.
The Stamp Duty is payable on the agreement value of the property
or the market value which ever is higher. |
|
| |
|
|
| Q. |
Which
are the instruments that attract the payment of Stamp Duty ? |
|
| A. |
The
instruments like Agreement to Sell, Conveyance Deed, Exchange
of property, Gift Deed, Partition Deed, Power of Attorney,
settlement and Deed and Transfer of lease attract Stamp Duty
on market value of the property. |
|
| |
|
|
| Q. |
Who
is the appropriate authority for knowing the market value of
the property ? |
|
| A. |
The
Sub-Registrar of the area, in whose jurisdiction the property
is located, is the appropriate authority for knowing the market
value of the property. |
|
| |
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