Home Loan Guide
HOME LOAN 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 employed or self-employed with a regular source of income.
Office premise loan
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 or commercial 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.
A number of factors such as your income, age, number of dependants, qualifications, assets and liabilities, income stability/ continuity of your employment / business etc. are taken into account when assessing your repayment capacity.
However, there are ways by which you can enhance your eligibility: If your spouse is earning, add him/her as a co-applicant. The additional income shall be included to enhance your loan amount. Incidentally, if there are any co-owners they must necessarily be co-applicants. Did you know that your fiancée’s income could also be considered for sanctioning the loan on your combined income? The disbursement of the loan, however, is done only after you submit proof of your marriage. Providing additional security like bonds, fixed deposits and LIC policies may also help to enhance eligibility. While there is no need for a guarantor, having one might enhance your credibility with us. If so, our loan officer would provide you with the necessary details. However, the final amount to be sanctioned will depend on your repayment capacity. In the total cost, registration charges, transfer charges and stamp duty costs are included.
Documents required for applying for a home loan (for self-employed professionals and businessmen)
Your loan will be disbursed after you identify and select the property that you are purchasing and submit the requisite legal documents. Each and every single document asked for will be verified and checked for your safety. This may take some time but we want to ensure a clear title by completing all the legal and technical verifications so that you have full rights to your home. The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax authorities (if applicable) is also needed. On satisfactory completion of the above, registration of the conveyance deed and investment of your own contribution, the loan amount (as warranted by the stage of construction) will be disbursed by Bank. The disbursement will be in favour of the builder/seller.
In order to escalate the responsibility and accountability towards consumers the RERA has mandated real estate developers (also known as real estate promoters) to register the project (measuring more than 500 square meters or more than eight apartments) and obtain a valid registration number before proceeding. He/she is not permitted to market, advertise or sell the units before the registration of the project. If the project is to be developed in phases then the developer have to obtain registration for each phase separately.
The developer is required to submit all the necessary documents related to the project as prescribed by RERA. It is mandatory for a real estate developer to open an escrow account in a bank recognized by the government and must deposit 70% of the total payment received from the consumer. He/she can withdraw the money and should solely use it for the development of the said project after getting it approved from an engineer, architect or chartered accountant.
If the developer fails to comply with the directions or violates the rules prescribed by RERA or the Appellate Tribunal then, he/she may face imprisonment up to three years with a fine of up to 10% of the total estimated cost of the project in question.
NRI Real Estate Corner
As the government continues to push through reforms (in the Land Acquisition Act, the Real Estate Regulatory bill, relaxation of FDI rules, etc.), property continues to remain the best option for NRIs looking to invest in India.
But before making the final decision, there are some big questions to be addressed; who is the developer, what are his credentials, details about the property, location, amenities, payment terms, legalities and so on. Creative Group always offers rewarding investment options through their residential and commercial projects.
Who is a Non-Resident Indian(NRI)?
An Indian citizen who stays abroad for employment/carrying on business or vocation 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. organisations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian origin are treated on par with non- resident Indian citizens (NRIs)..
Who is a PIO( Person of Indian Origin)?
A Person of Indian origin means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who:• held an Indian Passport at any time, or • who or whose father or paternal grand father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955
Who Can Purchase Immovable Property In India?
Under the general permission available, the following categories can freely purchase immovable property in India: i) Non-Resident Indian (NRI) - that is a citizen of India resident outside India ii) Person of Indian Origin (PIO) - that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who 1. at any time, held Indian passport, or 2. Who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955). The general permission, however, covers only purchase of residential and commercial property.
Can NRIs Sell the Properties They Hold In India Without Reserve Bank Permission?
Can NRIs Acquire Or Dispose Residential Property By Way Of Gift?
Yes, under the general permission granted by the Reserve Bank, property other than agricultural land/farm house/plantation property can be acquired by NRIs provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser's NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.
What is Power of Attorney?
A Power Of Attorney (POA) or letter of attorney is a written authorization to represent or act on another’s behalf in private affairs, business, or some other legal matter, sometimes against the wishes of the other. The person authorizing the other to act is the principal, grantor, or donor (of the power).A Power Of Attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property.A Power Of Attorney, or letter of attorney, is a document that authorizes another person, known as the agent or attorney-in-fact—usually a legally competent relative or close friend over 18 years old—to handle any combination of financial, legal and health care decisions. A power of attorney is also referred to as a POA. Generally, one chooses a POA as a provision if he or she becomes incapacitated.
NRI/PIO/OCI Real Estate Investment Guidelines
DOES CAPITAL GAINS TAX (CGT) APPLY TO NRI/PIO/OCI?
Type of asset: Assets like house property, land and building, jewellery, development rights etc. Rate of tax deduction at source (TDS) Long term – 20.6% < short term – 30.9%
Exemption available (only for long term capital gains) The long term capital gains arising on sale of a residential house can be invested in buying/ constructing another residential house, within the prescribed time. The exemption is restricted to the amount of capital gains or amount invested in new residential house, whichever is lower. If the amount of capital gains is invested in bonds of National Highways Authority of India
(NHAI) or Rural Electrification Corporation, then the entire capital gains is exempted, else the proportionate gain is exempted. As per the financial budget 2007-08, a cap of Rs. 50 lakhs has been imposed on investment that can be made in capital tax saving bonds.