The journey of a million miles starts with a few steps. However, the first baby steps do determine the direction, pace and achievement of goals.
Customer satisfaction, Value for money, High business ethics are some of the values we cherished and have nurtured since our inception. With the inception of our group in 1962, we started our first venture in logistics and very quickly moved onto a fullfledged all India Company. There was no stopping us then. From logistics to the travel industry onto 10 warehousing, construction and luxury bus body manufacturing. Our interest are varied but focus is only one — Customer Satisfaction.
Since more than 17 years Rekhi group has endeavored to turn each human aspiration into fulfillment, through this corporate motto of creating a better experience in every aspect of life across all its ventures and to create better communities. We have a rich experience of several years in Real Estate, in India. This experience has obviously proved a vital ingredient in our success. We are known for applying ourselves diligently to each project, right from conception to completion. Our commitment to customer satisfaction is reflected in the uncompromising quality and punctuality ensured through the application of advanced techniques of construction and management.
An NRI applicant is eligible to get a home loan ranging from a minimum of Rs 5 lakhs to a maximum of Rs 1 crore, based on the repayment capacity and the cost of the property, which although is variable by the priorities of the home loan provider. Also Home Loan Tenure for NRIs is different from Resident Indians. An applicant will be eligible for a maximum of 85% of the cost of the property or the cost of construction as applicable and 75% of the cost of land in case of purchase of land, based on the repayment capacity of the borrower. However, a NRI can enhance his loan eligibility by applying for home loans with a co-applicant who has a separate source of income. Also, the rate of interest for home loans to NRIs is higher than those offered to Resident Indians. The difference is to the extent of 0.25%-0.50%. Some HFCs also have an internally earmarked 'negative criterion' for NRI home loans. As such, the NRIs who hail from locations that are marked as being 'negative' in the books of HFCs, find it difficult to get a home loan.
The Non-Resident Indians (NRIs) are recognized under the Foreign Exchange Regulatory Act, 1973. Every bank and housing finance companies follow the RBI guidelines to define NRI – “An Indian citizen who holds a valid documents like Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI.”
BROADLY CATEGORIZED, NON-RESIDENT INDIANS QUALIFYING FOR NRI HOUSING LOANS ARE:
Documents required for Resident Indians as well as for NRIs for getting Home Loans are different in some respect. Home loans for NRIs are available for construction of new house / flats, purchase of old house / flat addition / alteration to an existing house and repairs / renovation etc. NRIs can avail of loans by mortgaging an existing residential property. However, for availing home loans, NRIs have to fulfil certain conditions according to provisions of the Income Tax Act. They should have stayed in India for a period of 182 days or more within an assessment year or they should have stayed in India for at least a total of one year or more.
The FDI Policy that permits FDI up to 100% from foreign/NRI investor under the automatic route has boosted NRI confidence. Banks have attractive NRI housing schemes to accommodate the housing needs of NRIs. From the stables of HFCs, NRI housing finance plans with suitable repayment options are available. Last but not the least, NRIs should take due care while selecting their home loan provider companies or HFCs. Considering the geographical distances involved, it is significant that loan seekers associate with a proactive and responsive HFC.
The Reserve Bank of India (RBI) has clarified that Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO), purchasing immovable property in India should pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country.
The NRIs and Resident Indians can also acquire immovable property in India other than agricultural property, plantation or a farmhouse. It has issued certain directive for sanctioning home loans to Non-Resident Indians. The guidelines provided are:
The documentation required to be submitted by the NRIs are different from the Resident Indians as they are required to submit additional documents, like copy of the passport and a copy of the works contract, etc. And of course NRIs have to follow certain eligibility criteria in order to get Home Loans in India. Another vital document required while processing an NRI home loan is the power of attorney (POA). The POA is important because, since the borrower is not based in India; the HFC would need a ‘representative’ ‘in lieu of’ the NRI to deal with and if needed. Although not obligatory, the POA is usually drawn on the NRI’s parents/wife/children.
The documents needed for obtaining NRI home loans are:
List of Classified documents for Salaried and Self Employed NRI Applicants:
Property Documents:
Non-Resident Indian’s and People of Indian Origin with Foreign Passport Holder can purchase of residential property in India. They are treated wholly as Indian Citizens and therefore don’t require permission to purchase from the Reserve Bank of India.
A foreign passport holder is deemed to be of Indian Origin if: 1) he held an Indian Passport at any time or ii) he or his father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955. However this does not apply to citizens of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal.
The purchase consideration should be met either out of inward remittance in foreign exchange through normal banking channels, or out of funds from NRE/FCNR accounts maintained with banks in India.
Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another NRI, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.
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 (Sale Deed) or final payment of purchase consideration along with a certified copy of the documentary evidence for the transaction and bank certificate for the money paid.
On an eventual sale of property, there will be tax implication on profit gain in case of individual. Individual will be charged upto 30% tax on the gain. Also in case of short term gain, the charge will be taxed at 30% if within three years. And above 3 years i.e. Long Term gain will be taxed at much lesser rate i.e. approx. 15%.The Net amount, after deducting the necessary taxes and charges, can be taken back in any currency outside India .
It is essential that you may know the background of the Builder? Since there are already existing projects, it will be easy to understand the working of the concerned builder. If earlier Projects have been completed in time & possession of the Apartments, especially those sold to NRI’s. Reference can be made and enquiry sought with such owners of apartments about their satisfaction with regards to their stay, maintenance and overall project work.
The price will differ depending on the size, location and view of the Apartment, so only on enquiry one will know the exact price at the stipulated time, besides the cost of the apartment, there will be other incidental costs such as Maintenance charges, Registration charges, Local Taxes as applicable, etc. Details will be provided on request.
All Agents will see you through the entire Sales Process and will be responsible from the initial contact to the final stage that is receiving your keys to the Apartment. For all this he will be paid or will charge a fee at a percentage of the basic price depending on the work load undertaken.
Besides being impressed with the work of the Builder, the Purchaser must check all the title documents of the said property that the Builder is the sole owner of the same. Ensure that the Construction plans have been approved by the concerned authorities and that the all necessary Government Approvals have been obtained to build and sell the same.
The Purchaser has to bear the expenses pertaining to Registration and Stamp Duty of the Apartment. There may be additional Government Taxes as applicable, such as Service Tax, any deposit in the name of the Purchaser or any other.
The price as quoted may increase periodically depending on the market by 7.5% to 10% at the discretion of the Builder. Thus, the earlier you book the Apartment the better rate you will receive.
No, the price quoted for an apartment, at the time of booking/purchasing will not change on escalation.
The Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, ICICI, SBI and various other Banks and authorized dealers to grant housing loans to non-resident Indian Nationals for acquisition of a house/flat for self-occupation subject to certain conditions. Details will be provided upon request.
Please go to: www.rbi.org.in for the website of Reserve Bank of India , click on FAQ then again on Foreign Exchange under “ Jan. 01, 2006 , Acquisition and Transfer of Immovable Property in India by a person resident outside India ”. This site gives a detailed account for all types of Foreign Nationals purchasing Residential Properties in India.
Please make sure you understand accept our terms before using this site. If you have further information before accepting our terms, please send us an email to sales@tricityltd.com
Disclaimer
