1. Interest Tax: This is the tax imposed on the interest paid (and not the principal) on a home loan.. This tax may either be included in the interest rate of the loan itself, or it may be charged separately as interest tax.
2. Processing Charge: This fee is payable to the lender up on application for a loan. It is either a fixed amount (not directly linked to the loan) or may also be a percentage of the total loan amount.
3. Pending Penalties: When a loan is paid back before the end of its agreed duration, some banks and companies charge a penalty. This usually varies between 1% and 2% of the total amount being pre-paid.
4. Commitment Fees: Some institutions levy a commitment fee after a loan has been processed and sanctioned in case it is not availed of within a stipulated period of time.
5. Miscellaneous costs: Lenders often levy documentation and/or consultant charges.

• Proof of Age
• Copy of Bank A/C statements for the last 6 months
• Copy of latest credit card statement
• Passport sized photograph
• Signature verification from bank authorities
• Income Tax returns for the last two years

If you are salaried, you need to produce:

• Salary and TDS certificate
• Latest pay slip
• Letter from employer
• Copy of PAN Card

If you are self-employed you required

• Your business track record
• Copy of audited financial statements for the last 2 years.

At the disbursal stage (for property already located), you need to submit:

• Allotment letters
• Photocopies of title deeds
• Agreement to sell
• Non-Encumbrance certificate

1. Rebate under Sec 80C of IT Act for repayment of principal amount
2. Deduction under Sec 24 of IT Act for interest payment on housing loans subject to an upper limit as may be decided by the government from time to time.

1. An Indian citizen who spent less than 182 days during the preceding financial year in India. OR
2. An Indian citizen who is either employed abroad, undertakes a business or other vocational activity overseas, or for other reasons, is unable to indicate with certainty the length of his/her stay abroad. OR
3. A government employee either deputed abroad on assignment or posted to Indian governmental offices located overseas, such as the Indian Diplomatic Missions. OR
4. d. An Indian citizen working abroad on assignment with foreign governmental agencies such as the UN, the WHO, the IMF, the World Bank etc.

Type:
Only term deposits, ranging over a period of 6 months to 3 years, can be maintained in FCNR (B) accounts. Current and savings accounts are not available under this scheme.

1. to acquire any immovable property other than agricultural land/farm house/plantation property in India by purchase using:
   (i) funds received in India through remittances from abroad, or
   (ii) funds held in the investor’s non-resident accounts
2. to be gifted any immovable property in India other than agricultural land/ farmhouses /plantation property from a resident, NRI or PIO
3. to inherit any immovable property in India from a resident or non-resident who had acquired the property in accordance with the law of foreign exchange valid at the time of acquisition.

Any non-resident person who has established a branch, office or other place of business (excluding a liaison office) in India in accordance with FEM Regulations, 2000, may acquire an immovable property so long as he/she provides a declaration in Form IPI to the Reserve Bank of India within 90 days of the date of acquisition.

1. Non-resident Indians are permitted to transfer any immovable property in India to a resident person, and any immovable property other than agricultural or plantation property or farmhouses, to a Non-Resident Indian or Person of Indian Origin.
2. ii. Persons of Indian Origin are permitted to transfer any immovable property in India other than agricultural land / farm houses / plantation property by way of sale to a resident person; any agricultural land / farm house / plantation property in India, by way of gift or sale to a resident person who is a citizen of India; and any residential or commercial property in India by way of gift to a resident person or NRI or PIO.
3. iii. Any Non-Resident person who has acquired any immovable property in India for establishing an office or other place of business (excluding a liaison office), is permitted to transfer such property by way of mortgage to an authorised dealer as security.

1. The immovable property was acquired by the seller in accordance with the law of foreign exchange in force at the time of acquisition.
2. The amount to be repatriated does not exceed the amount paid for the acquisition of the immovable property in foreign exchange received either (i) through normal banking channels, or (ii) from funds held in the seller’s FCNR A/c, or (iii) the foreign exchange equivalent, as on the date of payment, when the amount was paid of out the seller’s External Non Resident Rupee Account (NRE A/c).
3. In the case of residential property, the repatriation of sales proceeds is restricted to two properties.
4. If a non-resident person acquired an immovable property in India when he was a resident or inherited it from a resident, the repatriation of sales proceeds of the property will only be allowed once the Reserve Bank of India has granted permission. Similar restrictions shall apply for the successors of the above mentioned.
5. No permission is required for the renting, transfer or gifting of property so long as there is no repatriation of proceeds.

(The condition for the non-repatriation of sales proceeds for a period of three years has now been withdrawn by the Reserve Bank of India as per the RBI circular of 1.11.2002)

1. The size of the loan, interest rate, fees and other charges as well as the repayment period must be at par with those applicable to housing loans being granted to Indian residents.
2. The loans must be fully secured by creating an equitable mortgage of the property being acquired, and if necessary, additional liens may need to be placed upon other assets belonging to the borrower in India.
3. The loan amount must not be credited to the NRE, FCNR or NRNR (Non Resident Non-Repatriable Term Deposit Account) accounts of the non-resident borrower.
4. The borrower may repay the loan in installments comprising of principal & interest payments and other charges through remittances from abroad via normal banking channels, or from funds held in his/her NRE/FCNR/NRO/ NRNR accounts in India.