1. What is a home loan?
Home loan is the money borrowed from a bank of a housing finance institution on interest for buying/constructing/upgrading a residential real estate property.
2. Who can apply for a loan?
Any Indian national whether employed, self employed or NRI can apply for a loan.
3. When can I apply for a home loan?
You can apply anytime after you have decided to acquire, construct, extend or renovate a property. You can also apply even if you are yet to select a property or the construction is yet to commence.
4. What is the average tenure of a home loan?
As home loans involve a large sum of money, the tenure generally varies between 3 to 30 years.
5. What are the types of Loans available?
- Home loans for purchase of Flat / House , either new or resale
- Home loans for construction of a dwelling unit
- Home Extension loans, i.e. for construction of an additional floor or room to an existing house
- Home Improvement loans, i.e. to renovate the house
- Takeover loans: To pay off an existing loan with another financial institution and transfer the same to us
- Loans for purchase of a residential plot
Non-Housing Loans - (Only for Resident Indians)
- Loan against Mortgage of Property (LAMP)
Non Residential Property Loan (NRPRO loans) - to purchase an office or business space
The loans will be extended for properties which are duly approved by the competent authority.
6. How is my eligibility determined?
Your eligibility is determined considering various factors such as age, monthly income, monthly commitments, qualifications, employment, savings background, assets, liabilities and repayment history of other loans if any.
7. What is the maximum amount which I can borrow?
The maximum amount that you can borrow depends on various factors such as your repayment capacity as assessed by us, purpose of the loan, cost and value of the property, and is as detailed below:
Home Loans up to Rs. 20 lacs - 85% of the cost/value of the property whichever is lower Home Loans greater than Rs. 20 lacs - 80% of the cost/value of the property whichever is lower
Plot Loans - 60% - 75% of the cost/value of the property whichever is lower Non-Housing loans - 50% of the value of the property
8. How is the interest rate calculated on my loan?
The interest is calculated on Monthly Reducing balance basis, where the principal reduces every month from your EMI net of interest accrued.
9. How do I repay the loan?
You can repay the loan in Equated Monthly Installments (EMIs) comprising principal and interest. Repayment by EMIs commences from the month following the month in which you take full disbursement. Til then, you only need to pay the interest on the amount disbursed.
10. What is the EMI and when does it commence?
EMI or Equated Monthly Instalment refers to the fixed sum of money to be paid by you till you repay the entire loan. EMI consists of both principal and interest. The size of the EMI depends on the loan amount, rate of interest and term of the loan. The EMI is payable once the loan is fully disbursed and would commence from the date of final disbursement. Interest (known as Pre-EMI) is payable on partly disbursed loans and is payable every month on the amounts cumulatively disbursed till the loan is fully disbursed.
11. Who can be a co applicant?
Co applicant(s) can be co-owner(s) of the property in respect of which the financial assistance is sought. However, all co applicant(s) need not be co-owners. Relatives, as agreed by the Company, can join as co applicant(s). Generally, co applicants are husband, wife, father, son, mother, daughter, etc.
12. What are the documents required at the time of application?
The basic documents required to be submitted along with the application are as below:
- Proof of Identity, Address, Age
- Bank statements for the last six months
- Last three months Salary slips / Salary Certificate
- Form16 - Income-tax deduction certificate issued by the Employer
Self - employed
- Proof of Identity, Address, Age
- Business profile
- Income Tax Returns and Tax paid challan for the last three years
- Profit & Loss Account and Balance Sheet for the last three years
- Bank Statements for the last six months
On perusal of these basic documents, if it is felt by the company that further documents are required for appraisal, the same needs to be furnished.
13. What are the property documents that need to be submitted?
If the property has been identified, the basic documents required are as below:
- Original title deeds
- Agreement for sale/construction (as applicable)
- Parent document copies/originals wherever applicable
- Encumbrance Certificate for the last 15 years reflecting the history of transactions
- Approved plan/layout
- Revenue records like Patta, Chitta, Adangal, Town Survey Extracts, property tax receipts
Upon scrutiny of the basic documents, the company may ask for further documents if found necessary to establish dear and marketable title
14. When will the loan be disbursed?
The loan will be disbursed, once
a. all documents required to establish clear and marketable title are submitted
b. sufficient progress in construction that is proportionate to the own contribution is evident,
c. loan agreements executed and
d. conditions, if any, complied with
15. How does my salary influence my home loan amount?
Apart from other criteria and norms of the lending bank, the home loan amount is generally calculated on the basis of your EMI and NMI ratio, where NMI is the take-home pay after taxes and other payroll deductions. The EMI/NMI ratio varies in the range of 20% to 70% for different Net Annual Income slabs. The loan amount can be increased by including a co-applicant.
16. What are the other areas of expenditure before I get a Home Loan?
Processing and administrative fees, pre-payment charges and delayed payment charges, legal fees, technical fees, stamp duty and registration of mortgage deed are all likely areas of expenditure.
17. Can I apply jointly with my spouse? Will both our salaries be taken into consideration for calculating the loan amount?
Yes, your salaries can be clubbed for the purpose of calculation of the loan amount. This can be done either when the property is jointly held with the spouse or the spouse stands as a guarantor. Thus, we ensure a great deal of flexibility in the entire exercise of financing your house.
18. Can I sell the property even when the home loan is outstanding?
Yes, you can sell the property with the prior consent of the financing bank. If the buyer wants to take a loan to buy the property, the process is much easier if he/she approaches the same bank. In these cases, the bank does not need to release the property papers to another bank before getting the payment. If the buyer wants to make a payment outright, he can make it to the bank directly, The property papers will be released only after the bank has recovered the entire loan amount and other dues.
19. Do I get a tax benefit on Home Loan?
Yes, you are eligible for tax benefits on the principal and interest components of the EMI paid on Home Loans (other than plot loans) under Section 80C & 24(b) of the Income Tax Act, 1961, that is in force as of date. These benefits are subject to change as per the policies of the Government.
LOAN AMOUNT (RS)
NO. OF MONTH
RATE OF INTEREST (%)
1. Can PIOs/NRIs rent out the residential/commercial properties?
PIOs/NRIs can without restraint rent out their immovable property, whether purchased through the application of forex or otherwise, without seeking any consent from the RBI.
2. Who is OCI?
Any person of full age and capacity, who is a citizen of another country, but was a citizen of India at the time of, or at any time after, the commencement of the constitution.
3. How energy efficient is your villas?
At JRC, we thoughtfully design every square inch of our residential space. All our spaces are superiorly designed to allow our residents to make use of the energy efficiently. We provide a good orientation that lowers energy bills and reduces the greenhouse gas emission.
4. Do you own solar-powered villas?
No, we don't. But offer a good orientation that lowers energy bills and greenhouse gas emissions.
5. What type of warranty do you provide after and during the construction?
Each villa we build comes with a promising warranty. As a customer-service driven builder, we are genuinely happy to service your needs during and after the construction process.
6. How much supervision will my villa have during the construction?
Our Project Managers ensures the quality of the workmanship on the job site. Therefore, we make sure our quality standards are met.
7. How long is the building process?
It is considered to take around six months of time.
8. Who will I communicate with while my home is being constructed?
Once the building has started, you will communicate with our team and keep you updated.
9. Is it possible to make changes once construction has begun?
To keep costs within budget, it is suggested to bring the changes at the initial stage.
10. Are any necessary documents required to be submitted with the Reserve Bank of India after the purchase?
No, it's not required. An NRI / PIO who has purchased residential property under general permission is not required to submit any documents with the Reserve Bank of India.
Dear NRI Investor,
Thank you for visiting our NRI section.
We, at JRC Projects, lend full support to NRIs to buy properties in India. Another very important aspect is that an NRI who is an Indian Citizen can sell his Immovable Property to another NRI, but only through Indian channels. NRIs are also allowed to rent a particular property and send back their rental proceeds to the country they are currently residing in, wherein the amount will be subject to payment of taxes.
We wholeheartedly invite you to invest in JRC Projects, discuss your plans and help you arrive at the right investment decisions.
1. Who is termed as a Non Resident Indian?
An Indian Citizen who stays abroad for employment carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organizations and officials deputed abroad by Central/ State Government and Public Sector Undertakings on temporary assignments are also treated as non-resident) Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens.
2. What type of property can NRIs buy in India?
NRIs can buy any type of property in India except an agricultural or plantation property. However, they sure can inherit such land.
3. How can NRI fund property purchase in India?
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India.
4. What are the 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 along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.
5. Do NRI's require consent of the Reserve Bank of India (RBI) to buy immovable property in India?
No, NRI's do not require any consent from the RBI to buy immovable property in India, provided the property is residential or commercial in nature
6. How to conduct the purchase procedure?
A sale agreement is to be drawn on a stamp paper, which will mention the final amount, advance payment, time limit to pay the due amount and details of instalments. Once the sale deed is completed, it needs to be registered at the Sub Registrar or the Sub District Magistrate.
The overseas buyer’s foreign address has to be mentioned in the sale agreement. He can appoint a representative in India ( by means of Power of Attorney ) to act on his behalf. The property can be registered in the name if the NRI and the holder of the power of attorney can sign on his behalf by producing a copy of the document to the appropriate authorities.
7. What is Power of Attorney (POA)?
If the NRI investor cannot come to India in order to get the property registered in his name, he can exercise the Power of Attorney. He can give POA to a relative in India who will sign the papers on his behalf. A POA is issued abroad and is to be signed by both the parties in the present of a consulate officer.
8. What about the taxes?
Just owning a property in India does not make you liable for tax payment. You should have a rental income. However, if you sell the property within 3 years or after 3 years, you will be required to pay short term and long term capital gains on the profit earned, respectively. But if you invest the profit in another property within 6 months of the sale, the tax gels waived off.
9. Can NRIs get a home loan In India?
Yes. NRIs, OCls and PIOs, all three can get easy home loans in India. Some lenders also ensure hassle free paperwork. But the country’s legislative restrictions are there, so you should consult an expert before going for a home loan in India. You also get certain tax benefits on the same. The interest pant on home loan upto 2 Lakh can be deducted from the income you earn for house property under section 24. You also get benefits under section 80C of the Income Tax Act.
10. What are the eligibility criteria for obtaining NRI Home Loans?
The eligibility is calculated in the same way as is done for resident Indians with a special emphasis on:
Individual (s) over 18 years of age with a steady source of income who
1. are Non Resident Indians (NRIs) holding a valid Indian passport
2. are persons of Indian Origin (PIOs) holding a foreign passport
NRIs eligible for Home Loans under the Scheme may include
1. NRIs, with total work experience of 2 years in India or abroad, who have taken up jobs/professions/other economic activity abroad for better prospects
2. NRIs with a job contract for a minimum period of 2 years abroad after completion of 6 months in the employment and presently holding a valid job contract /work permit.
3. Indian citizens working abroad on assignments with foreign Governments/ government agencies or International/Regional Agencies like the UNO, IMF, World Bank, working with Merchant Navy etc, Officials of the Central and State Governments and Public Sector Undertakings deputed abroad on temporary assignments or posted to their offices (including Indian Diplomatic Missions) abroad.
11. What is the repayment period for the home loan for NRI's?
Repayment of the loan is required to be made by the borrower within a maximum period of 30 years subject to the stipulation that the loan should be liquidated by the age of 60 years of by the age of retirement, whichever occurs earlier.
12. Can an NRI/PIO acquire residential/commercial property by way of a gift under the general permission available?
Yes. Under the general RBI guidelines, NRI/PIO may acquire residential/commercial property by way of a gift from a person resident in India or an NRI or a PIO.
13. Can foreign citizens of Indian origin acquire or dispose of residential property by way of gift?
Yes, Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not, subject to compliance with applicable tax laws.
14. What to check before buying a property in India?
Few points of consideration are under:
Property name: The name of property should be clear from issues and the seller should have the required right to sell it, especially if it is inherited or any joint property.
No Dues Certificate: Always check that there will be no outstanding electricity/water bills or any other authority dues pending with the property. Take a no dues certificate from the seller at time of purchase.
Bank release letter: It is advisable to take the bank release letter from the concerned bank, if the property had been mortgaged as security in any type of loan.
Permits: The property of sale should have all approvals and permits from the civic authorities in terms of construction.
15. Can the property be given out for rent if not required for immediate use?
Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income has to be credited to NRO account.