Your Guide to Documents, Approvals, Loans and Other FAQs Related To Buying Your Dream Home
10 ESSENTIAL DOCUMENTS REQUIRED FOR BOOKING YOUR HOME
Latest Employer Letter
Copy of Employee ID
Current Company’s Offer Letter
Previous Company’s Relieving + Experience Letter
Monthly Salary Slips
Bank Account Statement
Income Tax Returns
Balance sheet and P&L a/c of the company for the last 3 years
Bank account statements of last 6 months for company and individual
Income Tax Returns 3 years
Utility bill for address proof
PRO/OCI card details
Power of attorney ( in respective of the format bank requires)
Credit check report
ELIGIBILITY CRITERIA FOR HOME LOANS
To qualify for a home loan, most of the lending institutions in India require you to be:
An Indian resident or NRI
Above 21 years of age at the commencement of the loan
Below 65 when the loan matures
Either salaried or self employed
Worthy of credit facility
WHAT ARE INTEREST RATES OFFERED FOR HOME LOANS
Interest rates vary from institution to institution and presently range from 6.9% to 10% depending on the customer classifications. The interest on home loans in India is usually calculated on monthly reducing* balance. In this system of Monthly reducing Balance, the principal, for which you pay interest, reduces every month as you pay your EMI.
PROPERTY DOCUMENTS TO BE VERIFIED BEFORE PURCHASE
The following documents must be verified :
Ownership Documents of the Land Owner/Promoter including title certificate.
Development Agreement, Development Permission/ Commencement Certificate and the building plan approval.
Any other permissions issued by the competent authority depending on the nature of of development.
Draft of Agreement for Sale and brochure for specifications, layout and amenities in the flat/complex/layout.
In Addition to the above the Occupancy Certificate (O.C.) issued to be verified
PROCEDURE TO EXECUTE THE ``AGREEMENT OF SALE``
The procedure for executing the agreement of sale is done in three steps.
STEP 1 : Payment of adequate stamp duty on the Agreement for Sale
STEP 2 : Execution of the Agreement for Sale by the Developer/Promoter and the Purchaser
STEP 3 : Registration of Agreement for Sale.
NRI BUYING GUIDELINES
CHECKLIST OF DOCUMENTS FOR HOME LOANS:
Duly filled NRI home loan application form with photograph of the applicant and co-applicant. Note – Sign the photo across so that half the signature is on the application, and the other half on the form
Copies of valid passport, valid Visa copies, overseas residential address proof and driving license. All to be self-attested and notarized
Latest 6 months bank statements showing salary credit – self-attested.
Latest 6 months NRE/NRO account bank statements – self-attested.
Latest 6 months salary slips– self-attested
3 years employment continuity proof.
Latest (3 years) Income Tax related documents.
Power Of Attorney in Bank Format by applicant and co-applicant to be executed in the current residing country and to be notarised.
Address proof, ID proof, 3 passport size photographs and signature proof of GPA holder.
Cheque from NRE account or NRO account Admin Fee (CTS 2010 cheque).
Credit report with credit score for applicant and co-applicant. (For US and Europe).
Permission for purchase of residential / 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.
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.
MODE OF PAYMENT FOR NRIs
Under the general permissions available, an NRI/PIO may purchase residential/commercial property in India out of funds remitted to India through normal banking channels or through funds held in his NRE/FCNR (B)/NRO account. No consideration will be paid outside of India.