FAQs

Investment options for NRIs in Pune Real Estate

Anyone who is an Indian citizen by birth, but for employment or other vocational reasons stays outside India for an indefinite period time can be all as a NRI.

Person-of-Indian Origin
Person-of-Indian Origin can be people who are citizens of a foreign country, but who are born in India or whose father and forefathers were of Indian origin.

Overseas Corporate Bodies
These are bodies largely owned by people who are Indian citizens or of Indian origin but reside outside India. They include overseas companies, corporate bodies and partnership firms owned mostly by the Indian citizens or people of Indian origin. In these bodies, three-fourth of the interest are owned by Indian citizens or people of Indian origin

Is it possible for Non-Resident Indians and Overseas Corporate Bodies to invest in India?
Yes, it is possible for them however, through the RBI and Government bodies, which includes, Foreign Investment Promotion Board (FIPB). These Individuals and bodies can invest up-to 100% equity in Indian real estate and civil aviation sectors. Their investment in India is fully repatriable except in case of real estate with a 3-year lock-in period on original investment, along with 16% cap on dividend repatriation.
Payments can be made, either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts in Indian banks.
There are no limitations on acquisition of commercial properties.
Yes, they can do so.
Yes, they can do so through approved banking channels however, after submitting their remittance forms to Reserve Bank of India. The maximum limit of sending remittances are US $ 100,000 a year.
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India.
No permissions are needed by Non-Resident Indian nationals to acquire immovable Property in India.
Yes, foreign nationals of Indian origin, whether resident in India or abroad, have permission to purchase immovable property in India.
The purchase of the flats can be financed from the fresh remittance through the normal banking channels or from payment from original non-resident account or from Non-resident (External) Accounts. Non-resident Indians who are citizens of India (India Passport holders) are eligible for housing finance for the acquisition of an immovable property or construction of a new house, or a flat for their occupation or for that of their family in India. But the HDFC also considers granting of loans to non-resident Indians even if they are abroad, provided a family member of his or her in India is made a co-borrower and a power of attorney is given to his representative in India.
The non-resident Indians who are staying abroad may enter into an agreement through their relatives and/or by executing the Power of Attorney in their favour as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or Developer, drafting and signing of agreements, taking possession, etc.) These formalities can be completed through some known person who can be given the Power of Attorney for this purpose. Power of Attorney should be executed on the stamp paper before the proper authorities in foreign countries. Power of Attorney cannot be drafted on the stamp paper bought in India.
Yes
Carpet area

This is the area of the apartment/building which does not include the area covered by the wall.

Built up Area

The Carpet area including Wall area.

Saleable area / Super Built up Area

This includes the area along with the area under common space such as lobby, lifts, stairs, etc.,

Common area normally varies from 15% to 25%.
The Stamp paper is generally purchased in the name of the executor to the agreement. Generally, the buyer pays the stamp duty unless agreed otherwise.
There is an eligibility of certain Tax Benefits on principal and interest components of a loan under the Income Tax Act, 1961. Moreover, you can get Tax benefits under sec 88 on repayment of principal amount.
Yes certain Banks / FI have approved Builders and Developers and assist you in your choice.
Generally, by way of deposit and deeds and / or such other collateral security as may be necessary.
It is possible for one to repay a loan ahead of schedule. A form of a penalty termed as pre-payment penalty is payable to certain institutions.
You will have to ensure that the property is duly and properly insured for fire and other Appropriate Hazards, as required by banks/ financial institutions with whom you may mortgage the property, during the pendency of loan. In such cases the beneficiary of the policy will be the concerned institution offering the loan. Even otherwise, it is advisable to insure your property from fire and other hazards.
Banks/ Financial institutions sanction loan amount based on certain criteria depending upon your repayment capacity. The maximum that can be sanctioned varies with Housing finance companies is 80% - 85% of the cost of your home.
An EMI is the monthly amount to be repaid by the bank or financial institutions against a loan amount borrowed for a fixed period of time. An EMI has two components, the principal component and the interest component. There are two methods reducing balance method and Monthly balance method. The reducing balance method reduced the principal amount already paid from the outstanding loan amount. Every time you make a payment, you pay interest on the part of the original principal sum that has remain update till then.
Pending final disbursement, you pay interest on the portion of the loan disbursal. This interest in called the pre- EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.
A loan taken on a floating interest rate, is a loan were the interest rate is payable is linked to the market rate. e.g. The Bank leading rate. The interest payable will also rise and fall as per bank leading rate which may also fluctuate.
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