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Home Loans for NRI’s and PIO’s

Buying a home in India while based abroad can be a complex proposition for a home seeker, as it involves extensive property search, through checking of builder credibility and track record, cumbersome legal process, technical evaluation of property documents and more. The entire process can be time consuming and requires coordination between the customer and the family members based in India.

Recognizing these concerns, HDFC, the pioneer housing finance company of India, has adopted a holistic approach to home loan counseling that is aimed at simplifying the home buying process. This calls for going beyond its core business of Home Loans and handholding the customer through all aspects of property purchase, be it property search, legal & technical issues, documentation or customization of repayment options. For this HDFC follows a ‘single-window concept’ and acts as a one-stop-destination for all property related requirements.

PROPERTY ASSISTANCE

Since property purchase involves large investments, it is important that the customer meets the developer in person to discuss freely about all aspect of the project. To facilitate this, HDFC has been regularly organizing property shows in India and abroad, which provide a one-stop destination for the home seekers. Other than being able to choose from a wide range of properties, the visitors at these shows are also comfortable of the developers’ credibility and their project quality, as these are all approved by HDFC.

Since HDFC deals with developers on a regular basis their team is aware of the track record and project history of the developers. Additionally, they also have a team of legal and technical experts, who check and verify the requisite documents before approving a project for financing. Since the customers are based abroad this saves a lot of time and effort taken to conduct a detailed due diligence.

WHY HDFC

'Customer Service' are the two key words in HDFC's operations. A positive personalized approach towards customer needs, is what it has always strived to achieve.

Some of the benefits of choosing HDFC as a loan provider:

  • A wide network and international presence: HDFC has a wide network of 298 outlets across India. Internationally it is present in London, Singapore and across the GCC region.
  • Seamless service: Offices of HDFC are seamlessly connected allowing customers to apply for a loan from any of its offices, irrespective of where the property is located in India, and service the loan from the country where they are based.
  • Customized solutions: HDFC offers a wide range of products and multiple repayment options that can be customized based on individual's requirements.
  • Pre-approved Home Loan: HDFC provides the facility of approving the loan even before a property is selected, which helps the customer in narrowing their property search and minimizes the time taken for the entire loan process.
  • Flexible mode of repayment: Repayment can be made in Equated Monthly Installments (EMI) from NRE/NRO account. Customers can also avail the Standing Instruction facility from HDFC Bank.
  • Expert Advice: With its three decades of experience in the Housing financial sector, HDFC has gained an in-depth knowledge of the real estate market, which enables the counsellors to guide the customers on all aspect of home buying including Legal & Technical services that include:

Legal

  • In-house legal team goes through the title deed, link documents and Encumbrance certificate (EC).
  • EC is scrutinized to ensure that all the title/link documents pertaining to the property have been obtained.
  • Documents are verified to check the chain of seller(s) and buyer(s) is properly maintained.
  • The age of the seller(s) and buyer(s) need to be verified.
  • The boundaries of the property are checked in all the title/link documents.
  • The title/link documents are further scrutinized to ensure that the buyer has absolute and marketable title.
  • Ensures that the plot does not fall in areas adversely notified by Government and also that the property is not situated in lands notified as Government lands.
  • If the property is situated in recently developed areas appropriate lay out approvals by necessary authorities should be provided.


Technical

  • The technical team also ascertains whether the plan approval has been obtained from appropriate authorities.
  • Whether the actual construction is done according to the approved plan.
  • In case of a flat, it also ensures that it is not built in areas earmarked for parking or open-area.
  • In case of a flat, it ensures that it is situated on the approved floor.
  • Be it an independent house or flat, the setback, extension of balconies, provision for road widening also needs to be checked.

These services usually save a lot of time and hassle for the customer, as HDFC’s experienced in-house counsellors approves all the legal and technical aspect of property documentation. Also it saves a lot of money as HDFC’s processing and administrative charges cover all these expenses.

LOANS products FOR NRI’s and PIO’s

HDFC’s NRI Home loans make home coming to India a beautiful reality. The home can be anything from a modest apartment to a row house to a spacious bungalow, and HDFC will finance it.

Fixed Rate Home Loan

HDFC provides home loans for the construction/ purchase of homes (Fresh / Resale). A customer who is totally risk averse can opt for a fixed rate loan as the rate of interest here is not subject to any change at all and remains fixed throughout the tenure of the loan irrespective of any fluctuations in the interest rates in the economy or the institutions internal policies.

Adjustable Rate Home Loan (ARHL)

On the other hand if the customer is willing to take a risk, then a floating rate may be a viable option. The rates on the ARHL will be linked to HDFC’s Retail Prime Lending Rate (RPLR). The rate on the loan will be reset every three months from the date of the first disbursement, if there is a change in RPLR.

For a floating rate loan most institutions reset the tenure of the loan if there are any interest rate changes rather than change the EMI to avoid any immediate impact on the customer. However, in such a scenario the customer should be cautious that such increases in the loan tenure do not go beyond their earning years or into their retirement period. The EMI should also cover the interest portion payable on the loan amount.

Loan Amount and Tenure

Loans are available for a maximum of 85% of the cost of the property, is available, maximum term being 7 years. For professionals, the term can be extended up to 20 years.

Home Improvement Loans

Home Improvement Loans will help give a new look to the house and takes care of everything related to renovation of the home. It facilitates internal and external repairs and improvements such as painting, roofing, waterproofing, plumbing & electrical works, tiling and flooring, grills and aluminium windows, woodwork, etc. Basically anything that would ultimately be a great value addition to the home. One can borrow upto a maximum of 85% of the cost of renovation. Existing HDFC customers can borrow upto a maximum of 100% of the cost of renovation. Existing HDFC customers can borrow upto a maximum of 100% of the cost of renovation. The term of the loan is a maximum of 5 years.

Home Extension Loans

The Home Extension loan facilitates extension of the house to meet the demand of more personal space for a growing family– whether it’s enclosing the open balcony space, adding an extra bathroom or just about anything that would add some space to the house. The maximum amount of such a loan is 85% of the cost of extension, for a maximum term of 7 years. For professionals, the term can be extended up to 20 years.
 

HDFC Land Loan

HDFC’s Land Loan is available for purchasing land for building a home. Loan can be availed upto maximum of 85% of the cost of land, for a maximum term of 7 years. For professionals, the term can be extended up to 20 years.

REPAYMENT OPTIONS

HDFC has customized repayment options that structure the loan in such a way that it offers flexibility to customers, enhances their loan eligibility, optimizes tax benefits and customizes EMIs according to their repayment capacity.

Step Up Repayment Facility (SURF)

SURF provides customers with repayment schedules, which are linked to their expected growth in income. It also helps a customer get a larger amount of loan as compared to the normal housing loan and helps optimize tax benefits. The customer gets a higher amount of loan and pays lower EMIs in the initial years.  Subsequently, the repayment is accelerated proportionately with the assumed increase in his income.

The EMIs will be increased in stages.  For eg: For a 15-year loan, the repayment schedule, divided into 3 tranche would give a step up in the EMI at the end of the 3 rd and 7th year. The EMIs for the first seven years constitute a large part of interest and a nominal sum of the principal portion.  For the balance 8 years, the EMIs are stepped up to recover the outstanding principal and interest for the remaining term of the loan.

In view of the tax benefits on the interest paid on the housing loans, this product can be used to optimise the tax benefit as it defers the payment of principal.

Flexible Loan Installment Plan (FLIP)

This product suits the needs of customers whose repayment capacity is likely to alter during the term of the loan. The EMI is higher during the initial years and subsequently decreases in the latter part proportionate to the reduced income of the customer. For eg: If Husband has 10 years of service left and wife has 15 years to retire then a 15 year loan can be structured such that a higher EMI (serviced out of both the incomes) is paid for first 10 years and a lower EMI (serviced out of only wife's income) is paid for next 5 years.

Acceleration of EMI

Under this facility, the customer has an option to increase the EMIs every year in proportion to the increase in his income. Here the customer would end up repaying the loan at a much faster rate and the interest burden would also come down. Also since the increase in EMI is only to the extent of the increase in income, the increased EMI would not burden them. No charges are to be paid to avail this facility.

DOCUMENTATION

For speedy an approval of loan application, customers is to submit the following documents:
Documents reworded

HDFC REALTY

With the property and real estate market becoming dynamic than ever before, it has become imperative for the Sellers and Buyers of property to come closer. HDFC Realty is a team of real estate professionals that facilitates Buying, Selling or Leasing of Residential / Commercial property in India. By virtue of being HDFC subsidiary, they have a nationwide access to information pertaining to the developers, their track record, ongoing and upcoming projects, the real estate market scenario, the trends in the industry, etc. This information is made available to the home seekers, thus facilitating their home buying process.

The HDFC Realty team comprises trained professionals, who provide personalized attention to every customer; right from understanding the requirement to organizing the site visits for the family members based in India, to completion of the entire property transaction. They attempt to bring together under one umbrella, all the requisite expertise and experience required for varied aspects of property transaction.

In an attempt to break down time and geographical barriers, the services of HDFC Realty are also offered through its portal www.hdfcrealty.com. The portal skillfully combines the boundary less cyberspace with the tangible real estate, to provide a reassuring personal touch.  

 

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