Shelter is one of the three prior necessities in human life. House, we prefer to call it as home, which is quite inevitable in life. Home is an immovable property as well as a permanent identity of a person. The acquisition of a home can be such an extremely personal and emotional experience. We never go in hurry when buying a home. As it is a big investment, the buyer should follow the proper procedure. Hence, buying a home is an important event in life. There are many common factors and hidden stuffs are to be followed regarding buying home.
India is a vast country. Choosing a location in India is too interesting as well as difficult. India is a multi cultured, multi lingual, and diversified in many aspects. It is said, “What is not in India that is not in Earth”. So there is nothing missed in India. India has a wide geographic distribution. Different regions are remarked with mountain, costal, vegetation and plain relief. The person decides the location, where he wants be settled. The traditional people prefer to settle in that area where their predecessors have been living.
An Indian dreams a home in India and the choice of location matters a lot for him. However, the choice concludes earliest with the preferable location in the country.
Decision for a home loan:
The decision for applying a loan is very personal, which is based on the necessity and financial status. A home loam is a benefit to the person as per his/her background and money management. The necessity as well as the benefit of loan is to be analyzed by every buyer. If both the factors suit to the buyer, then he/she can go for a proper decision of house loan. Indian people are different in different parts of India. Their social status and the per-capita incomes are variable from one place to another. Because of this classification and the economic level, bankers and financers are very close to people to provide loan when buying a home.
Loan for Resident Indian:
When you are an Indian, you have less limitation towards the home finance. The housing finance companies offer a varying range of home loans for Resident Indians. There are different financers are offering number of housing finance schemes to resident Indians. There are certain documents required for that specific scheme, interest rates across loan amounts and finance companies.
Loan for Non Resident Indians:
The Non Resident Indians (NRIs) are recognized under the Foreign Exchange Regulatory Act, 1973. They are Indian citizens but stay abroad. Indian Government officials who are deputed abroad on assignments to places like the World Bank, World Health Organization (WHO), Economic and Social Commission for Asia, International Monetary Fund (IMF) and the Pacific (ESCAP). These individuals are on temporary assignments or posted to their branches or offices abroad.
They are called non residential in India, if they do not fulfill the 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. At least they should have stayed in India for a total of one year or more.
The Reserve Bank of India (RBI) guidelines for loans to NRIs:
The amount given in the form of a loan is limited to 85% of the cost of the property as
the remaining amount that is 15% needs to be provided an own contribution towards the cost of unit financed, less the loan amount. This amount can be remitted directly from abroad through normal banking channels or from the NRE/NRO account in India. The loan needs to be replayed including both the principal and interest as well as all charges be remitted to the housing finance company from abroad using normal banking channels, the NRE and/or NRO accounts in India.
The loan for NRIs is quite feasible, because they are well in economic resource. Definitely, the bankers see the economical stability of the applicant, and sanction a fast loan for an NRI. The options ranges vary from buying your own house from a builder or from a second owner. And the same way as an Indian Resident they provide loans for improving your existing residence. There are specific documents to be got complete information required for that specific scheme, interest rates across loan amounts and finance companies.
The loan eligibility indicates you to fulfill certain criteria before applying a housing loan. The policies applied by the RBI are applicable to all the bankers and financer in India. They cannot avoid such mandatory criteria.
The housing finance companies verify the following criteria:
• The applicant must be earning a regular monthly income.
• If the applicant is a salaried, he/she should have a minimum of 5 years of service left.
For a business person, a professional or a self employed individual,
the age should be less than 58 years when applying for the loan.
The specific documents are very much necessary for the banker or financer to avoid any dispute and ambiguity. The Residential Indians have to submit their income proof, property documents and personal identification documents, whereas for NRIs, they have to submit income proof documents, property evidence documents and personal identity as well as supporting documents.
Based on the type of loan the number and type documents needed vary based on the borrowing individual status and the type of loan you want to avail. There are some generic documents are mandatory for the applicant to apply such as the Loan Applicant’s Profile, Earning Life of the Applicant and Present Financial Status proof etc. The Applicant’s Profile is a kind of bio data of the applicant mentioned of his address, age, family background and detail information of him. The Earning Life of the Applicants’ proof clarifies the capability of the loan payment. The Present Financial status gives the present capability of handling the own contribution and other expenditures. This includes the mortgage to be deposited against the loan amount.