Home loans Trivandrum Kerala
Home Loans Made Easy
Documents required for Home Loans
Below are the lists of documents required for availing of home loans for various business and property categories. Please click on the categories mentioned above to view the list.
Salaried Individuals Home loans Kerala
1. Salary slip/Form 16 A.
2. A photocopy of the first and last pages of Ration card or copy of PAN/Telephone/Electricity bills.
3. A photocopy of Investments (FD Certificates, Shares, any fixed asset etc. or any other documents supporting the financial background of the borrower.
4. A photocopy of LIC policies with the latest premium payment receipts (if any).
5. Photographs (as applicable).
6. A photocopy of bank statement for the last six months.
Self-Employed/Businessmen Home loans Kerala
1. A brief introduction of Business/Profession.
2. Balance Sheet, Profit and Loss account and statement of income with Income Tax returns for the last 3 years certified by a CA.
3. A photocopy of Advance Tax payments (if applicable).
4. A photocopy of Registration Certificate of establishment under shops and Establishments Act/Factories Act.
5. A photocopy of Registration Certificate for deduction of Profession Tax (if applicable).
6. Bank statements of Current and Saving accounts for the last 6 months.
7. A photocopy of Certificate of Practice(if applicable).
8. A photocopy of any bank loan (if applicable).
9. A photocopy of the first and last pages of the Ration card or a copy of PAN/Telephone/Electricity Bills.
10. A photocopy of LIC policy (if applicable).
11. A photocopy of investments (FD Certificates, Shares, any other fixed asset).
If a flat is purchased from the builder
1. Original copy of your agreement with the builder.
2. 7/12 extract or property register card of the land under construction.
3. Index II extract of your agreement with the builder.
4. Copy of N.A. permission for the land from the collector.
5. Search and title report (with the details of documents) for the last 30 years.
6. Development agreement between the owner of land and the builder.
7. Copy of order under the Urban land Ceiling Act.
8. Copy of building plans sanctioned by the competent authority.
9. Commencement certificate granted by Corporation / Nagar Palika.
10. Building completion certificate(if available).
11. The latest receipts of taxes paid.
12. Partnership deed or memorandum of association of the builders firm.
If the property is being purchased is in a Cooperative Society
1. Original share certificate of the Society.
2. Allotment letter from the society in your name.
3. Copy of the lease deed, if executed .
4. Certificate of the registration of the society.
5. Copy of the byelaws of the society.
6. No objection certificate from the society.
7. 7/12 extract or property register card in the society's name.
8. Copy of N.A permission for the land from the collector.
9. Search and title report(with the details of documents) for the last 30 years.
10. Copy of order under the Urban Land ceiling Act.
11. Copy of the building plans sanctioned by the competent authority.
12. Commencement certificate granted by Corporation / Nagar Palika.
13. The latest receipts of taxes paid.
14. Original Agreement to assign / Deed of assignment.
If constructing on own land
1. Original sale deed of land and extract of Index II.
2. 7/12 extract or property register card in your name.
3. Copy of N.A. permission for land from the collector.
4. Search and title report (with the details of documents) for the last 30 years.
5. Copy of order under Urban Land Ceiling Act.
6. Copy of the building plans sanctioned by the competent authority.
7. Building permission granted by Corporation / Nagar Palika.
8. The latest receipts of taxes paid.
9. Estimate of cost of construction certified by the architect.
Nri home loans
Nri home loan eligibility
Documents required for NRI Home Loans
Documents Required (NRIs)
Employment/residency related documents: Photocopies of:
1. Employment contract (English copy if the contract is not in English, attested by the Embassy/Employer).
2. Latest work permit.
3. Details of previous employment.
4. Identity card issued by current employer.
5. Continuous discharge certificate (CDC) – (for applicants employed in the merchant navy).
6. Latest salary slip/certificate.
7. Overseas Bank Account Statement (four months).
8. Pages with visa stamp on the passport.
Property Related Documents
1. Allotment letter from the co-operative society / association of apartment owners.
2. Receipts for payments made for purchase of the dwelling unit.
3. Agreement for sale / sale deed /detailed cost estimate from Architect / Engineer for property to be purchased / constructed /extended / improved.
4. Copy of approved drawings of proposed construction/purchase/extension.
Additional documents be submitted by Person of Indian Origin Photocopy of PIO card.
If the PIO card is not available, photocopies of any of the following documents:
1. The current passport, with birthplace as ‘INDIA’.
2. The Indian passport, if held by the individual earlier.
3. Parents/grandparents Indian passport/birth certificate/marriage certificate substantiating the individuals claim as a person of Indian origin.
Home Loan FAQs (NRIs)
Who is a non-resident Indian (NRI)?
An Indian Citizen who stays abroad for employment / carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organisation and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non- residents). Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens (NRIs).
Who is a person of Indian Origin ?
For the purpose of availing of the facilities of opening and maintenance of bank accounts and investments in shares/securities in India : A foreign citizen (other than a citizen of Pakistan or Bangladesh is deemed to be of Indian origin, if, (i) he, At any time, held an Indian passport (or) (ii) he or either of his parents or any of his grand parents was a citizen by virtue of the constitution of India or citizenship act, 1995 (57 of 1955). Note: A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian origin is also treated as a person of Indian origin for the above purposes. B. For investments in immovable properties: A foreign citizen other than a citizen of Pakistan, Bangladesh, Sri Lanka or Nepal), Is deemed to be of Indian origin if, (i) he, At any time, held an Indian passport (or) (ii) he or either of his parents or any of his grand parents was a citizen by virtue of the constitution of India or citizenship act, 1995 (57 of 1955).
What is an OCB?
Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian nationality or origin resident out side Indian and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of atleast 60% by individuals of Indian nationality or origin resident outside India as also overseas trust in which atleast 60% of the beneficial interest is irrevocably held by such persons. Such ownership interest should be actually held by them and not in the capacity as nominees. The various facilities granted to NRIs are also available with certain exceptions to OCBs so long as the ownership/beneficial interest held in them by NRIs continues to be atleast 60%.
Are OCBs required to produce any certificate regarding ownership/beneficial interest in them by NRIs?
Yes. In order to establish that the ownership/beneficial interest in any OCB held by NRIs is not less than 60%, the concerned body/trust is required to furnish a certificate from an overseas auditor / chartered / accountant /certified public accountant in form OAC where the ownership/beneficial interest is directly held by NRIs, and in form OAC 1 where it is held indirectly by NRIs and further that such ownership interest is actually held by them and not in the capacity as nominees.
What are the various facilities available to NRIs/OCBs?
NRIs/OCBs are granted the followings facilities: 1. Maintenance of bank accounts in India. 2. Investments in securities/shares of, and deposits with, Indian firms/companies. 3. Investments in immovable properties in india
How do I repay the loan?
You repay the loan in Equated Monthly Installments (EMIs), which includes principal and interest. EMI repayment starts from the month following the month in which you take full disbursement. EMI is payable every month, by the end of the month from the date of each disbursement up to 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)/Non Resident (Special) Rupee Account (NRSR) in India. Can I repay my loan ahead of schedule? Yes. You can repay the loan ahead of schedule, by remittances through abroad through normal banking channels, your Non Resident (Ordinary) / Non Resident (Special) Rupee Account (NRSR) in India. Does the Agreement For Sale have to be registered? In many states in India, the Agreement of 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.
Home Loan FAQs
Please click on a question to view the answer
1. What are the types of home loans available ?
2. What is an EMI ?
3. How is an EMI calculated ?
4. What are the incentives offered by lending institutions ?
5. What are the eligibility conditions for a home loan ?
6. What are the interest rates offered for home loans? What are: Daily Reducing, Monthly Reducing and Yearly Reducing ?
7. What is the best way to select the cheapest home loan ?
8. What is a fixed rate of interest ?
9. What is a floating rate ?
10. What are the other costs that usually accompany a home loan ?
1. What are the types of home loans available ?
1.HOME PURCHASE LOAN.
This is the common loan for purchasing a home.
2. HOME IMPROVEMENT LOAN
This loan is given for implementing repair works and renovations to your home
3. HOME CONSTRUCTION LOAN.
This loan is available for the construction of a new home.
4. HOME EXTENSION LOAN.
Given for expanding or extending an existing home. For example, addition of an extra room, etc.
5. HOME CONVERSION LOAN
Available for those who have financed the present home with a Home Loan and wish to purchase and move to another home for which some additional funds are required. Through a Home Conversion Loan, the existing loan is transferred to the new home, including the additional amount required, eliminating the need for pre-payment of the previous loan.
6. LAND PURCHASE LOAN
Sanctioned for purchase of land, for both home construction or investment purposes.
7. BRIDGE LOAN.
The Bridge Loan is designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home.
8. BALANCE TRANSFER LOAN.
Balance Transfer loans help you pay off an existing home loan with a higher interest rate, and avail of a loan with a lower rate of interest.
9. REFINANCE LOAN
This loan helps you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home.
10. STAMP DUTY LOAN
This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of a property.
11. LOANS TO NRIs
This loan is tailored for the requirements of NRIs wishing to build or buy a home in India
What is an EMI ?
EMI (Equated Monthly Installment) is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal.
How is an EMI calculated ?
EMI Formula : l x r [(1+r)n /(1+r)n-1 ] x 1/12
l = loan amount
r = rate of interest
n = term of the loan
What are the incentives offered by lending institutions ?
1. Some of the lending institutions sanction the loan without requiring you to identify property as a prerequisite for eligibility.
2. Free accident insurance
3. Discounts
4. Waiving of pre payment penalty
5. Waiving of processing fee
6. Free property insurance
What are the eligibility conditions for a home loan ?
To qualify for a home loan, most of the lending institutions in India require you to be:
1. An Indian resident or NRI
2. Above 21 years of age at the commencement of the loan
3. Below 65 when the loan matures
4. Either salaried or self employed
What are the interest rates offered for home loans? What are Daily Reducing, Monthly Reducing and Yearly Reducing ?
Interest rates are different from institution to institution and generally range from about 9.25% to around 12%. The interest on home loans in India is usually calculated either on monthly reducing or yearly reducing balance. In some cases, daily reducing basis is also adopted.
Annual reducing:
In this system, the principal, for which you pay interest, reduces at the end of the year. Thus you continue to pay interest on a certain portion of the principal which you have actually paid back to the lender. This means the EMI for the monthly reducing system is effectively less than the annual reducing system.
Monthly reducing:
In this system, the principal, for which you pay interest, reduces every month as you pay your EMI.
Daily Reducing:
In this system, the principal, for which you pay interest, reduces from the day you pay your EMI. EMI in the daily reducing system is less than the monthly reducing system.
What is the best way to select the cheapest home loan ?
Keep the loan period constant and calculate the total amount paid for the home through the different loan options available.
What is a fixed rate of interest ?
Some institutions have a fixed rate of interest, which means the rate of interest remains unchanged for the entire duration of the loan. This means you do not benefit, even if rates of interest drop in the market
What is a floating rate ?
This is the rate of interest that fluctuates according to the market lending rate. This means you stand the risk of paying more than you budgeted for in case the lending rate goes up.
What are the other costs that usually accompany a home loan ?
Home loans are usually accompanied by the following extra costs:
1. Processing Charge: It’s a fee payable to the lender on applying for a loan. It is either a fixed amount not linked to the loan or may also be a percentage of the loan amount. The loan amount required by you cannot be less than the processing fee.
2. Pre-payment Penalties: When a loan is paid back before the end of the agreed duration, a penalty is charged by some banks/companies, which is usually between 1% and 2% of the amount being pre-paid.
3. Commitment Fees: Some institutions levy a commitment fee in case the loan is not availed of within a stipulated period of time after it is processed and sanctioned.
4. Miscellaneous Costs: It is quite possible that some lenders may levy a documentation or consultant charges.
5. Registration of mortgage deed.
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