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loans for Non-Resident Indians- From HDFC HDFC offers you Loans for Homes - for buying or constructing your home or even to extend or improve your existing home. HDFC will also finance purchase of land, from approved agencies to help you construct a home of your choice. You could acquire a self-contained flat in an existing or proposed co-operative society, in an apanment ownersassociationorevenanindependentsingle-familyormulti-family bungalow or row house. HDFC, through its office in Dubai and Service Associates in Kuwait, Oman and Qatar, offers to the Middle East based NRls who wish to acquire homes in India: * Advisory services in real estate i.e. information and services regarding buying and selling of real estate in India. * Advisory services in real estate financing i.e. facilitate NRls taking lonns from HDFC - India. GENERAL INFORMATION ON HOME LOANS What is the maximum amount I can borrow? You can avail of a maximum loan of Rs 50,00,000 or 85% of the cost of the propenty, including cost of the land, whichever is lower. For Home Improvement & Land Purchase, you can avail a maximum loolls of Rs. 10,00,000 or 70% of the cost of imProvement / purchase. How will HDFC decide the loan amount I am eligible for? Subjecttotheabove,yourrepaymentcapacityasdeterminedbyHDFC, will help decide how much you can borrow Repayment capacity takcs into consideration factors such as income, age, qualifications, work experience, number of dependants, spouse s income, assets, liabilities, stability and continuity of occupation, alternate employment prospects when you return to India and savings history. And, of course, HDFC's main concern is to make sure you can comfontably rcpay the amount you borrow When can I make an application? You can apply for a loan whilst you arc wolkhlg abroad, to plan for your return to India in the future. The application can be made at any time after you have decided to acquirelconstruct/extend/improve a property, even if the propenty has not been selected or the construction/ improvement has not commenced. How do I make an application? It's simple! Complete the application form attached to this brochure and submit it along with the supponting documents at any HDFC olfice that is convenient to you. On receipt of the completed application form with the prescribed fee, HDFC will consider your application, makeenquiries as it deems necessary and convey its decision to you. You can also appoint a Power of Attorncy in India and the Powel ol Attorney should be executed as per the draft provided by HDFC. This draft is available at any HDFC office. What is the fee payable on application and when is it payable? A one time fee of 2% of the loal1 amolnt applied for is to be paid whell the form is submitted to HDFC.
b) Past occupational history c) Latest salary slip. d) Latest work permit e) Identity card issued by current employers f) Visa stamped on the passport. g) Continuous Discharge Certificate (CDC) - (il applicable) h) Overseas Bank Account Statement for the last tour months 2. Property Related Documents: a) Receipts for payments made lor purchase of the owelling unit. b) Copy ol approved drawings of proposed constructionlpurchasel extension c) Agreement lor salelsale deedldetailed cost estimate from Architect Engineer for property to be purchasedlconstructedlextendedlimproved d) Allotment letter from the co-operative society/association of apartment owners 3 Power of attorney as per HDFC's draft. Please take photocopies of all documents that are submitted to HDFC (including this application form) for your personal record. Who can be co-applicants? Proposed owners of the propenty, in respect of which you are seeking financial assistance will have to be co-applicants. However, co-applicants need not be co-owners. What is the rate of interest that will be charged on my loan? The current applicable rate of interest for home loans/home extension:
*Inclusive of interest tax Interest is calculated on annual rests. Principal repayments are credited at the end of HDFC's financial year The effective rate of interest on aloan, for a term of 7 years is 1.25% p.a. higher than the corresponding rate of interest indicated above. While it will be an endeavour ol H DFC to keep the interest rate constant over the duration of the loan, it reserves the right to vary the rate of interest prospectively at any time in response to changes in money market conditions or if a levy, tax on interest or any other charge or burden is imposed or levied by any government or authority. What is the maximum term in which I can repay the loan? The term of repayment of the loan is upto seven years. However, HDFC endeavours to determine the repayment term to suit your convenience. How do I repay the loan? You repay the loan in Equated Monthly Instalments (EMls) comprlslng principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement. EMI is payablc cvcry month, by the end of that month. In respect of the period prior to commencement of EMI, you pay interest on the amount of the loan disbursed. This interest is called Pre-EMI interest. Pre-EMI intercst is payable every month, by thc cnd of thc month, from the date of each disbursement upto 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) Account in India. What is the size of the EMI? The EMI is 1/12th the Equated Annual Instalment. The size of the monthly instalment comprising principal and interest depends on the quantum of the loan, the interest rate applicable and the term of the loan. A sample of various EMls (rounded off) corresponding to different terms is given in the table below: EMI for a loan of Rs.1.00.000
What security will I have to provide? Security for the loan is a first mortgage of the property to be financed, llormally by way of deposit of title deeds and/or such other collateral security as may be necessary. Interim security may be required, if the propeny is under construction. Collateral or interim security could be assignment to HDFC of life insurance policies, thc surrender value of which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investmeras that are acceptable to HDFC. Please do ensure that the title to the property is clear, marketable and iree from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely. When can I take disbursement of the loan? You can take disbursement of the loan after the property has been technically evaluated, all legal documentation has been completed and you have invested your own contribution in full. Own contribution is the total cost of the property less HDFC's loan. If you are based in the Middle East you can request for the disbursement of your loan through our office in Dubai or our Service Associates in Kuwait, Oman and Qatar. In how many instalments can the loan be disbursed? The loan will be disbursed in full or in suitable instalments (normally not exceeding three in number) taking into account the requirement of funds and progress of construction, as assessed by HDFC and not necessarily according to a builder's agreement You are advised in your own interest to enter into such agreements with bui Iders whereby payment is dependant upon the progress of work and not on a time-based schedule. Can I repay my loan ahead of schedule? Yes. You can repay the loan ahead of schedule, by remittances from abroad through normal banking channels, your Non-Resident (External) Account and/or Non-Resident (Ordinary) Account in India. Early redemption chdrges are not required to be paid. In what form can I make payments to HDFC? Payments for fees, charges, and pre EMI interest should be remitted to HDFC from abroad through normal banking channels or from the Non-Resident (External) Account/ Non-Resident (Ordinary) account in India. EMI payments are to be made through post dated cheques from yourNon-Resident (External) Account/Non-Resident (Ordinary) Account. Cash payments will not be accepted. Does the Agreement for Sale have to be registered? In many states in India, the Agreement tor 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. Are there any restrictions on transfer of immovable properties? In terms oi Chapter XXC of the Incomr Tax Act, 1961, the Cel1tral Government has the first option to purchase certain immovable properties exceeding certain value and as such transactions covered by this Chapter can be proceeded with only after complying with the requirements prescribed therein. Does the property have to be insured? You will havr to ensure that the property is duly and properly insured for fire and other appropriate hazards, as required by HDFC, during the pendency of the loan and to produce evidence thereof to HDFC, each year and/or whenever called upon to do so. HDFC should be the beneficiary of the insurance policy. Will HDFC assist me in selecting accommodation of my choice? Yes, for accommodation of your choice in select cities in India. For intormation on this service, do contact our Propeny Services Group. Are these policies suyect to change? Yes. These Policies will be leviewed Periodically. Will HDFC finance persons of Indian origin holding foreign passports? As per current guidelines ot the Reserve Bank ot Illdia persons ot Indian origin holding foreign passports are not eligible for loans from HDFC. SERVICE ASSOCIATES KUWAIT OMAM QATAR LOAN FACILITIES OFFERED BY HDFC TO NON-RESIDENT INDIANS * HOUSING LOANS |
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