|
How can NRIs in Middle East countries avail of a Home Loan from HDFC?
HDFC has made it easier for the Gulf based NRIs to apply for a loan to HDFC - India. HDFC through its office in Dubai and Service Associates in Kuwait, Oman, Saudi Arabia and Qatar, now offers advisory services in real estate and real estate financing to the Middle East based Non-Resident Indians who wish to acquire homes in India. These offices will coordinate the entire loan process in India from Approval , Disbursement right upto the Repayment and Collection of your property documents.
^Top
How can NRIs in the United Kingdom avail of a Home Loan from HDFC?
United Kingdom Customers
Customers in the UK can avail of a complete home purchase solution through our services of home loan , assistance in property search, expert advice on the legal processes, and technical evaluation of property. Our London office will coordinate the entire loan process in India from Approval, Disbursement right upto the repayment and Collection of your property documents.
^Top
For what purposes can I get a Home Loan from HDFC?
HDFC provides loans for Purchase, Construction, Extending an existing home, Renovation, or for purchase of a plot of land from Development Authorities.
^Top
How can I apply for a Home Loan with HDFC?
You can either
1. download (in a pdf format) the application form or
2. Apply Online
^Top
What are the documents that need to be submitted along with the application?
The following documents are to be submitted along with the application:
- Photocopy of the Employment Contract or Labour Contract and English translation duly countersigned by your employer
- Latest salary certificate (in English) specifying the following:
- A. Name (as it appears in the passport)
- B. Date of joining
- C. Passport Number
- D. Designation
- E. Perquisites and salary
- Photocopy of Identity card / Labour card
- Photocopy of valid resident visa stamped on the passport
- Photocopy of monthly statement of local bank account for the last 4 months
- Property related documents
^Top
What security will I have to provide?
The security for the loan is first mortgage of the property to be financed, by way of deposit of title deeds and/or such other collateral security as may be necessary. The documents need to be submitted in India to the HDFC Offices that is disbursing the loan.
In addition interim security may be required, if the property is under construction. Collateral or interim security could be in the form of assignment of life insurance policies, the surrender value of which is at least equal to the loan amount, pledge of shares and such other investments that are acceptable to HDFC.
Please ensure that the title to the property is clear, marketable and free 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.
We request you to please keep copies of the documents, as the originals will be in HDFC's custody till the full repayment of the loan.
^Top
Do I have to register the sale agreement?
In many states in India, the Agreement for 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.
^Top
Who can be co-applicants?
All owners need to be co-applicants to the loan. However, all co-applicants need not be co-owners.
^Top
Do I need to be physically present to avail a loan?
No, the power of attorney (POA) can apply and carry out the formalities on your behalf.
^Top
Can I give a Power of Attorney in favour of a person of my choice in India to complete loan formalities on my behalf?
Yes. It would be desirable to appoint a Power of Attorney in India and the POA should be a resident of the city where you wish to apply for a home loan. The POA should be executed as per the draft provided by HDFC.
In case the co-applicant is not present in India to complete the loan formalities, the co-applicant should also draw a power of attorney favouring the person of choice in India.
^Top
Can I submit the loan application at your Dubai office or to the HDFC Service Associates in the Middle East Countries and avail the loan in India?
Yes. You can submit the loan application at HDFC's Dubai office or to our Service Associates in the Middle East Countries. The disbursement of the loan can be taken by you or your Power of Attorney holder in India.
^Top
How will HDFC decide my loan eligibility?
Your repayment capacity as determined by HDFC will help decide your loan eligibility subject to 85% of the cost of the property. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. And, of course, HDFC's main concern is to make sure you can comfortably repay the loan amount.
^Top
Which locations in India does HDFC provide finance for properties?
HDFC finances properties through a wide network of offices and outreach programs. Please click to get details of our offices. Office Locator.
^Top
Can HDFC assist me in selecting a property?
HDFC provides assistance in finding a property of your choice. For information on this service, do contact our Property Services.
^Top
What is an EMI?
You repay the loan in Equated Monthly installments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement. Please refer to the EMI Calculator for further details.
^Top
What is pre-EMI interest?
Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement upto the date of commencement of EMI.
^Top
How do I make the payment?
You can pay the EMI, pre-EMI interest or other charges through cheques favouring HDFC Ltd., from your NRE/ FCNR/ NRO/ NRSR account in India.
^Top
Clearance of arrears by defaulters
An NRI who is not repaying the loan regularly, may subsequently opt to clear the outstanding loan through direct remittances from abroad through normal banking channels, from the Non-Resident (External) account in India or through Non-Resident (Ordinary)/ Non-Resident Special Rupee account /cash (withdrawn from Non-Resident (Ordinary)/ Non-Resident Special Rupee account).
^Top
If I am applying for a home loan at your Dubai Office, Can I pay the fees in Dubai?
Yes, customers making applications at Dubai office are required to make fee payments in UAE Dirhams (UAED) through cheque/demand draft. Please check with HDFC's Dubai office for the applicable Dirham-Rupee exchange rate for determining the fee payable in UAED.
^Top
What is meant by "Own Contribution"? Is it necessary that the own contribution have to be paid through the NRE account?
Own Contribution is the cost of the dwelling unit financed less the loan amount. The own contribution should be met from direct remittances from abroad through normal banking channels or from the Non-Resident (External) Account/Non-Resident (Ordinary) or the Non-Resident Special Rupee account in India. The own contribution must be completed to enable HDFC to disburse the loan amount.
^Top
Can I repay my loan ahead of schedule?
Yes, you can repay the loan ahead of schedule by making Lumpsum payments or choose our accelerated repayment scheme. There are NO charges for choosing an accelerated repayment scheme and for lumpsum payments under Adjustable Rate Home Loan.
Adjustable Rate Home Loan [ARHL]
If a prepayment is made within 3 years of the first disbursement*, under Adjustable Rate Home Loan (ARHL) option early redemption charges of 2% of the amount being prepaid is payable if the amount being repaid is more than 25% of the opening balance.
Fixed Rate Home Loan [FRHL]
Redemption charges of 2% of the amount being prepaid is payable if the amount being repaid is more than 25% of the opening balance
Incase of commercial refinance under both the FRHL and ARHL an early redemption charge of 2% is payable. You may be required to submit copies of your Bank Statements or any other documents that HDFC deems necessary to verify the source of prepayment.
*Subject to terms and conditions
For further details please contact our Loan Counsellor.
^Top
How is my loan reassessed if there is a change in status from Non-Resident Indian to Resident Indian?
The repayment capacity of the applicant(s) based on Resident status is reassessed and a revised repayment schedule worked out. The new rate of interest will be as per the applicable rate on Resident Indian loans at the time of conversion (for that specific loan product). This revised rate of interest would be applicable on the outstanding balance being converted.
^Top
Who classifies as a Person of Indian Origin (PIO)?
An individual classifies as a PIO if
- He at any time held an Indian passport.
- He/ either of his parents/ either of his grandparents was a citizen of India.
- The person is a spouse of an Indian citizen.
A Person of Indian origin can be a citizen of any country (other than Bangladesh or Pakistan)
^Top
Does HDFC finance a PIO holding foreign passport?
Yes. As per current guidelines of the Reserve Bank of India, persons of Indian origin holding foreign passports are eligible for loans from HDFC.
^Top
What loans is a PIO eligible for?
A PIO can avail loans for home purchase and home extension.
^Top
What documents would be required to prove my PIO eligibility?
- A photocopy of the PIO card OR
- A photocopy of current passport indicating birthplace as 'India'
- A photocopy of Indian passport, if held by the individual earlier
- A photocopy of parents/grand parents Indian passport/ birth certificate/ marriage certificate.
^Top
Are there any special terms and conditions for a loan to a PIO?
All other terms and conditions relating to rate of interest, term of loan, fees, appraisal norms, own contribution, remittances and repayment of loan remain the same as those for loans to NRIs.
^Top
What is a PIO card?
A PIO card is issued to a "Person of Indian Origin ", by the "Indian mission" (Embassy of India / High Commission of India / Indian Consulate in a foreign country. It extends to the cardholder certain facilities, as prescribed by the Ministry of External Affairs, and is valid for a period of 20 years.
^Top
Do I have to have a PIO card for the loan?
It is not mandatory for a person of Indian origin to have a PIO card issued in the customers name, to apply for the loan.
^Top
Are these policies subject to change?
Yes. These policies will be reviewed periodically.
^Top |
