Faq

Frequently Asked Questions

NRI

ARE THERE ANY FORMALITIES REQUIRED TO BE COMPLETED BY FOREIGN CITIZENS OF INDIAN ORIGIN FOR PURCHASING RESIDENTIAL IMMOVABLE PROPERTY IN INDIA UNDER THE GENERAL PERMISSION?

Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final instalment of consideration amount, whichever is later.

CAN SALE PROCEEDS OF SUCH PROPERTY IF AND WHEN SOLD BE REMITTED OUT OF INDIA?

In respect of residential properties purchased on or after 26th May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property.

CAN SUCH PROPERTY BE SOLD WITHOUT THE PERMISSION OF RESERVE BANK?

Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

ARE THERE ANY FORMALITIES REQUIRED TO BE COMPLETED BY FOREIGN CITIZENS OF INDIAN ORIGIN FOR PURCHASING RESIDENTIAL IMMOVABLE PROPERTY IN INDIA UNDER THE GENERAL PERMISSION?

They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration alongwith a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.

Home Loans

WHEN WILL THE LOAN BE DISBURSED?

Your loan will be disbursed on:
1. Your identification and selection of the property.
2. Submission of the legal documents.
3. Legal and technical clearance of the property
4. Investment of your contribution towards the property

WHEN CAN I APPLY FOR A LOAN?

You can apply for a home loan even before you have selected your property. The loan amount would be sanctioned or approved for you, based on your repayment capability.

WHAT ARE THE VARIOUS TYPES OF LOANS AVAILABLE?

1. Home Loans
2. Land Loans
3. Home Equity Loans
4. Office Premises Loans
All of these are available on an adjustable rate or a fixed rate.

General

What is meant by Carpet Area, Built-Up Area & Super Built-Up Area?

Carpet area is defined as the precise area within the walls of your home. If you had to lay out a wall-to-wall carpet in your entire home, the area covered would be the carpet area. Built-up area is inclusive of not just the carpet area but also the area being occupied by the walls of your home. Super built-up area takes into account all the area under the common spaces which is the apartment’s proportionate share of the lobby, staircase, elevator and the corridor outside the apartment.

What are the documents you need to check before buying?
  1. Check for proper conveyance of Title in favor of the builder.
  2. Check the license/development right/approvals of the builder.
  3. Check clear and marketable title of the project.
  4. Ensure execution of proper Allotment Letter/Sale Agreements on your payments.
  5. Ensure whether reputed financial companies approve the project. This will help you in getting financial loans.
  6. Check the tentative layout/building plan and verify the plinth area of the apartment. It is advisable to check the carpet area of the apartment and find out if the difference between plinth area and carpet area is reasonable.
  7. Ask for Occupation/Completion Certificate.
  8. Ensure the Conveyance Deed is registered after the entire payment has been made.
  9. For buying a property you need to check Deed of Conveyance, Mutation Certificate (for complete property), Land Registration Status, Sanction Plan, Search Report and Payment Schedule (for under construction). It is a must that you go through all the documents relating to the origin of the property, chain of Title, Occupancy Certificate, sanctions from various authorities dealing with building plans, fire safety and Completion Certificate.
  10. For re-sale property, check demand notice relating to renovation, tax dues and latest receipts of payments made towards various out-goings such as water, electricity and ground rent.
What is the procedure for execution of the Agreement for Sale?

The procedure involved is three-fold:

  1. Firstly, the payment of adequate stamp duty on the Agreement for Sale
  2. Secondly, Execution of the Agreement for Sale by the Developer/Promoter and the Purchaser and;
  3. Thirdly, Registration of Agreement for Sale.
What is Stamp Duty and who is liable to pay the Stamp Duty, the purchaser or the Developer?

Stamp Duty is supposed to be paid every time there is a transfer of ownership. It is calculated on  the total value of your property. The amount to be paid varies from city to city.

What are the age limits for buying a house and taking a loan for the same ?

You must be at least 21 years of age for the loan to be sanctioned. The loan must terminate before or when you turn 65 years of age. You must be self-employed with a regular source of income. The loan can be for the purchase / construction / extension of a non-residential property. A loan for renovation or improvement will be given only at the time of acquisition of property. Professionally qualified and self-employed individuals can apply. A minimum of 3 year’s work experience is a must.

What are documents needed for sanctioning a home loan ?
  1. Updated bank passbook or a Xerox of the statement of accounts for the last 6 months
  2. Age proof: PAN card, Voters ID, Passport and License Xerox of ration card Business profile with details on the nature of business, list of clients, suppliers, staff strength, geographical spread, etc.
  3. Xerox of education qualifications certificate and proof of business existence
  4. Xerox of last 3 years Income Tax returns Last 3 years profit /loss and balance sheet Processing fees cheque
  5. Documents required for applying for a home loan (for employed professionals)
  6. Latest salary certificate / slip in original
  7. Age proof: PAN card, voters ID, passport, license
  8. Xerox of Form no.16 A (TDS Form) from employer. Certificate in original from employer for any other allowances, which are not reflected in salary slip
  9. Updated bank pass book / Xerox of statement of accounts for last 6 months
  10. Xerox of your company’s ID or ration card
  11. Passport size photographs of applicant and co-applicant
  12. Processing fees cheque
  13. You may be asked to submit further legal documents if required by the bank or its approved lawyers. Retain photocopies of all the documents being submitted by you.
How much is the Registration Fees on sale of immovable property?

During the transfer of property from one to another, the stamp paper and registration fee has to be paid which is equivalent to 7 to 8 per cent of the value of the property or those of circle rates. These rates are the notified rates of a particular area set by the government on which the registration charges on the value of the property are calculated. The circle rates can be seen on government registration and stamp department websites of each city.