It is important to choose a good housing finance company which can handhold the customer right through his home buying process. Since a home loan is a long term commitment of 15-20 years, several factors like expertise, quality of service, in-depth domain knowledge and the company's level of commitment and transparency right through, the loan procedures, the fine print, quality of services offered and safe retrieval of the title deed are critical.

DOCUMENTS REQUIRED

GENERAL

Last 3 Months Pay Slips.
Latest Form - 16.
Latest 6 months Bank Statement showing Salary Credits.
Age & Residence Proof.
Latest Photographs with Signature.
Processing Fee Cheque.
Application duly filled & Signed by the Applicant(s).
Pan card.
Self attestation in all paper.

If less than two year in the present organization

Resume.
Relieving order from previous company.
Appointment order from existing company.

NON RESIDENT INDIANS

Last 3 Months Pay Slips.
Last 6 Months Bank statement (Salary credit).
Form 16.
Latest Photographs with signature.
Passport copy.
Processing fee Cheque.
Personal profile.
NRI Bank statement.
WLL 2 Form.
Work Permit.
Latest Increment Letter (if any).
Power of Attorney.
Check Credit Payment.

SELF EMPLOYED

Last 3 Years.
Profit and Loss Account.
Balance Sheet.
Saral.
Current Account Statement for Last 1Year.
6 Months Savings Account Statement.
Pan Card.
Personal Profile.
Business Profile / Website.
Loan Details / OD Details.

Reserve Bank of India (RBI) Guidelines on NRI Investment in properties in India

I. PERMISSION FOR PURCHASE OF RESIDENTIAL PROPERTY / COMMERCIAL PROPERTY.

NRIs holding Indian passports - No permission required.
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

Property held by NRIs in India can be sold. No permission is required from the Reserve Bank of India.

III. REPATRIATION OF SALE PROCEEDS

Repatriation of proceeds from sale of residential property purchased on or after 26th May 1993 is allowed.
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.
Application of repatriation (IPI - 8) has to be done within 90 days of the sale of the property.

IV. INCOME FROM PROPERTY

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.
E. & O.E.

V. RETURN ON INVESTMENT

RENTAL RETURNS - The rental returns on an investment in Residential property
in Chennai is 5% - 6% p.a.

VI. APPRECIATION OF PROPERTY

Conservative estimate of appreciation on an investment in property in Chennai is about 20% p.a. NRIs start to gain by investing in Real Estate when compared to the investments on the NRNR / FCNR deposits.

What is the minimum loan amount that we can get?.

You can get a home loan starting from Rs. 2 lakh (Delhi, Mumbai & Bangalore Rs. 3 Lakhs). The loan amount depends on your repayment capability and is restricted to a maximum of 85% of the cost of the property or the cost of construction as applicable. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability, continuity of occupation and savings history.

What are the loan tenure options?

You have the option of selecting a term you are comfortable with, ranging up to 20 years, provided the term does not extend beyond your reaching 65 years of age or retirement age, whichever is earlier.

How is the interest charged/calculated?

There are two schemes: * Fixed rate home loans.
* Floating Rate Home Loans.
If you opt for an Floating Rate Home Loan, the interest rate would vary with the Bank Home Floating Reference Rate. Under the Fixed Rate Home Loans the rate applicable on the date of disbursement remains fixed during the entire duration of the loan.

How much time will it take for my loan to be approved?

How much time will it take for my loan to be approved?

Who can be the co-applicants for the loan?

You could include your spouse as a co-applicant for the loan and we shall include his/her income to enhance your loan amount. Further, in case there are any other co-owners they also need to be co-applicants.

Is a personal guarantor a must?

No, there is no personal guarantor required in most cases.

What security/collateral do I have to provide?

Typically the security for the loan is a first mortgage of the property to be financed, by way of deposit of title deeds and/or such other collateral security as may be necessary. The title to the property should be clear, marketable and free from any encumbrances.

What are the stages involved in taking a loan?

There are two main stages: * Sanction of the loan, whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities.
* Disbursement of the loan amount..

What are the various types of loans available?

All of these are available on an Floating rate or a fixed rate.

What is a Monthly Reducing balance?

An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in a significant saving for the customer over the tenure of the loan.

What is an Annual Reducing balance?

An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on annual rests, the principal reduces only at the end of the year. Therefore, you continue to pay interest on a portion of the principal that you have already actually paid back to the lending company.

When will the loan be disbursed?

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

What is an amortization schedule?

An amortization schedule is a table giving the reduction of your loan amount by monthly installments. The amortization schedule gives the breakup of every EMI towards repayment interest and outstanding principal of your loan. Moreover, the rebate is allowed up to the maximum limit of Rs.20,000 per financial year on the repayment of the principal sums, which need not be out of income chargeable to tax of the year in which such repayment is made. Interest repaid: Under section 24 of the Income Tax Act , in case of self-occupied property, deduction is allowed up to Rs.1,50,000 per annum for houses acquired or constructed with capital borrowed after March 31, 1999 as long as the acquisition or construction is completed within 3 years from the end of the year in which such loan is taken.

Can I get IT certificates in the name of both the Applicant and co-Applicant separately?

As per the IT rules only one certificate can be issued for a home loan and hence one certificate will be issued in the name of both applicant and co applicant.

When is the IT certificate issued?

The IT certificate will be issued at the end of a financial year. You can expect to receive your copy of the IT certificate in the month of April or May.

How can I get the tax benefit during the year?

You can request for a provisional IT certificate that can be issued any time during the course of the year. General details of Home Loans, may vary case to case.