Various housing loans are offered by financial institutions. Prominent among these are :
• Home Loans
This is the basic housing loan for the purchase of a new home which covers cost of the flat, deposits and charges, stamp duty and registration charges.
• Home Improvement Loans
For implementing repair works and renovations in a home that has already been purchased by you
• Home Construction Loans
For the construction of a new house
• Home Extension Loans
For expanding or extending an existing house
• Home Conversion Loans
The existing loan on a house is transferred to a new house, including the extra amount required, eliminating the need for pre-payment of the previous loan
• Bridge Loans
For people who wish to sell the existing house and purchase another and need finance for the new house, until a buyer is found for the old house
• Balance Transfer
To pay off an existing housing loan and avail of the option of a loan with a lower rate of interest.
• Refinance Loans
To pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present house.
• Loans To NRIs
As per requirements of NRIs who want to buy a house in India.
Any person, including Non Resident Indians, with a steady source of income can borrow funds for financing the cost of a flat from housing finance companies and banks.
Loans are generally disbursed between 70%-80% of the cost of the flat. The balance money is to be funded by the flat purchaser from his own contribution. The percentage of loan would vary from bank to bank.
All projects at Developer are pre approved for grant of home loans by leading housing finance companies and banks. The Developer sales team liaises with the all leading Housing Finance Institutions for project approvals, processing the loan, documentation and disbursement of loans.
Equated Monthly Installment ("EMI") is the amount comprising a portion of the interest and the principal loan amount which is payable by a borrower to the lender every month
Interest rates vary from time to time and from institution to institution. The interest calculated either on a daily or monthly reducing or yearly reducing balances.
A floating interest rate loan is a loan where the interest rate payable is linked to the market conditions such as the base rate and rises and falls with the bank rate varies. Hence a borrower bears the risk of interest rate fluctuations. Floating interest rates offered are usually lower than the fixed interest rates.
In a monthly reducing interest system the principal on which interest is paid reduces every month as EMI is paid. In the annual reducing system the principal is reduced at the end of the year, and the borrower pays interest on a certain portion of the principal, which is actually paid back to the lender. The EMI for the monthly reducing system is effectively lesser than the yearly reducing system of calculating interest.
Processing Fees payable to the lender on applying for a loan and is either a fixed amount not linked to the loan or may also be a percentage of the loan amount.
Prepayment Penalty between 1% and 2% of the amount being pre paid is charged by some institutions when a loan is paid back before the end of the agreed duration.
Stamp duty and registration fee as per prevailing rate of Government Authority.
Miscellaneous costs: such as administrative costs, legal documentation charges, technical consultant charges
Usually loans are disbursed within 10 - 15 days after completion of verification by the institution, documentation (such as handing over of the original agreement for sale / lodging receipt to the lender) and completion of all relevant procedures and only after proof that the borrower's own contribution has been paid by him to the Vendor / Builder / Developer.
Latest salary slip (proof of income for salaried individuals
Photographs
Proof of age
Identity papers
Proof of residence
Bank statements for the previous six months
For self employed, certified copies of balance sheet, profit and loss statement and tax challans / tax returns for the previous 3 years
For partnership/private limited companies, the Articles of Association, partnership deed and details about the firm
For NRIs Latest salary certificate specifying, Name (as it appears in the passport), Date of joining, Passport Number, Designation, Perquisites and salary, Photocopy of labour card/identity card, Photocopy of valid resident visa stamped on the passport, Photocopy of monthly statement of local bank account, Property related documents
Deduction of interest on housing loan. In the case of self-occupied property acquired or constructed out of borrowed funds the deduction available for interest on capital borrowed is Rs. 1,50,000/-. In case of property, which is rented, the whole of the interest amount is allowed as deduction. The interest on borrowed funds in pre construction period is allowed over a 5-year period.
Long term capital gains on sale of property used for residence:
Section 54 of the Income Tax Act provides relief to an individual or Hindu Undivided Family from capital gains arising from transfer of a residential house held by the assessee atleast for a period of 36 months. Such capital gains to the extent utilised for purchase (within 1 year before or 2 years after the date of sale) or construction (within 3 years of date of sale) of a residential house is exempt u/s 54. If the amount of capital gains is proposed to be utilised, but is not so utilised upto the due date for filing of return then, the amount of unutilised capital gain is required to be deposited in the "Capital Gains Account Scheme, 1988".
Section 54F of the Income Tax Act exempts long term capital gains arising from transfer of any long term capital asset other than a residential house. Such capital gains to the extent utilised for purchase (within 1 year before or 2 years after the date of sale) or construction (within 3 years of date of sale) of a residential house is exempt u/s 54F. To be entitled to this exemption the assessee should not own more than one residential house other than the house sold as on the date of transfer. The provisions of depositing the unutilised capital gain in the "Capital Gains Account Scheme, 1988" as explained above is also applicable.
Section 54EC of the Income Tax Act provides relief from capital gains arising from transfer of any capital asset on or after 1st April 2000 shall be exempt to the extent such capital gain is invested within a period of 6 months after the date of such transfer in the long term specified asset provided such specified asset is not transferred or converted into money within a period of 3 years from the date of its acquisition. However, the investment made on or after 1st April 2007 in the long term specified asset by assessee during any financial year cannot exceed Rs. 50 lakhs. For claiming this exemption, the capital gains has to be invested (within 6 months of date of transfer) in notified bonds issued by:
• National Bank for Agriculture and Rural Development (NABARD)
• National Highways Authority of India
• Rural Electrification Corporation Ltd
• National Housing Bank
• Small Industries Development Bank of India (SIDBI)
'Instrument' includes every document by which any right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded, but does not include a bill of exchange, cheque, promissory note, bill of lading, letter of credit, policy of insurance, transfer of share, debenture, proxy and receipt."
Market value in relation to any property which is the subject matter of an instrument means the price which such property would have fetched if sold in the open market on the date of execution of such instrument or the consideration mentioned in the instrument, whichever is higher. The price which such property would have fetched if sold in the open market is determined on the basis of the Ready Reckoner issued each year. Depreciation in stamp duty is available for old buildings and building without lift.
All instrument are liable to be stamped before or at the time of execution of instrument or immediately thereafter on the next working day following the date of execution, when executed in the State of Maharashtra. Any instrument executed outside the state is liable to duty only on receipt of such instrument in the state, provided it relates to a property situated in the state, or a matter or thing to be done in the state. Stamp duty is not levied on a transaction, but on an instrument.
Documents listed in Section 17 of the Indian Registration Act, 1908 are to be registered compulsorily. Registration of documents listed in Section 18 of the Indian Registration Act, 1908 is optional. An agreement for leave and licence is required to be compulsorily registered under the Maharashtra Rent Control Act, 1999.
Yes. Documents must be registered within 4 months of the date of execution. Thereafter, documents can be registered within the next 4 months on payment of penalty.
A purchaser (whether on first sale from a developer or on resale of a flat) or a lessee of a flat or office is required to pay stamp duty and registration fee.
Stamp duty above the value of Rs. 25,000 is payable by a pay order/ demand draft/cheque drawn in favour of "The Superintendent of Stamps, Mumbai". Alternatively, a pay order can be drawn in favour of "The Reserve Bank of India- A/c Stamp Duty, Mumbai". The original instrument is then franked with the value of the stamp duty. Adhesive stamps are no longer used in Mumbai city. Stamp Duty upto the value of Rs.25,000 can be paid in cash. A receipt is issued by the concerned office for the stamp duty amount.
Once adequate stamp duty is affixed on an instrument and it is dated, signed by the parties and attested (where required) by witnesses, it can be lodged for registration after payment of the registration fee. All parties signing the instrument are required to attend the office of the concerned Sub Registrar of Assurances either by themselves or through their constituted attorney under a power of attorney to admit execution of the instrument. A passport size photograph, original power of attorney, personal identification such as passport or income tax PAN Card, adequate xerox copies of the original instrument are some of the essentials required for registration. After lodging an instrument, it is registered and seal of the Sub Registrar is affixed on the instrument, thereafter the original instrument is returned back to the parties.
Yes. Previously the penalty was an amount not exceeding 10 times the amount of the proper duty. As per the recent amendments, penalty of 2% per month on the proper duty for the period of default will be levied, subject to a maximum of 2 times the deficient portion of duty. Instruments are liable to be impounded till proper stamp duty is paid.
Yes. If stamp duty is paid on an instrument but the instrument is not signed by any party then an application is to be made within 6 months of the date of purchase of the stamp paper, to the concerned authorities for refund of stamp duty. The original stamp paper is returned alongwith the application. On receipt of such application, the concerned authorities are empowered to refund the value of stamp duty after deducting such amounts as may prescribed.
When an instrument is presented for registration and the concerned authorities have reasons to believe that an instrument does not reflect the true market value and they can take steps for recovery of the stamp duty including impounding of instruments. If the collector determines that the proper stamp duty has not been paid then penalty can be levied on such instruments.
A person can seek the opinion of the Collector of Stamps by making an application to him for adjudication of stamp duty payable by such person on the instrument. For this purpose, the person who is a party to the instrument has to furnish a true copy of the instrument and an affidavit stating the facts and such other evidences as required, along with prescribed fee. The Collector's opinion is final and conclusive. No appeal lies against his order of adjudication
