• EXCEPTIONAL QUALITY
  • AESTHETIC DESIGN
  • AFFORDABLE PRICE

About Us

Nahar Foundation’s Private Limited (NFPL) saw its beginning that reflected their penchant to provide quality realt ons, and that aimed at creating homes and not just houses for their clients. Their keen eye for detail and expertise with the intricacies of construction has brought over 60 prestigious residential projects to the firm’s dossier.

Incorporated in the year 2003, Nahar Foundations has offered exceptional real estate developments over the years that adorn the city’s magnificent skyline.

Guided by integrity, innovation, quality and high service standards, Nahar Foundations has grown momentously to attain a distinguished position of leadership in the real estate industry by successfully crafting many landmark projects across the city. Each of the Nahar projects stands apart in their aesthetic design, impeccable quality and enticing features that lend exceptional value and privilege to those who own them.

Why Choose Nahars

Nahars is synonym to Exceptional Quality, Aesthetic Design and Affordable Price. Nahars with its experience of over a decade in construction and 3 decades in real estate promises clear legal titles and delivery on time. Also, choosing Nahars would have no alternative, for their platter of projects include budget homes, deluxe apartments, premium row houses, luxury villas and layout developments.

Nahar's Presence

Vision

We at Nahar Foundation are driven by only one vision – total customer satisfaction. We aim at achieving the perfect synergy between form and function so that your home is your pride and joy.

We strive to achieve your satisfaction by:
  • Understanding your unique needs and aspirations
  • Making these insights our only touch-stone in decision-making at every level
  • Maximize value for money

Mission

Having established an enviable reputation in the field, our mission for the coming years is to be diversified into newer geographies and new lines of business verticals, while adding to our achievement in our existing business of turn-key housing construction.

Management

The Nahar team is led by Founder-Director Mr. B. Tolachand Nahar and Mr. B. Sumerchand Nahar. The collective synergy between the team and its leaders is the cornerstone of Nahar Foundation's exponential growth and abiding success. Each person in the team has exclusive expertise in a certain area. Every project benefits from this multi-faceted expertise: team-members handle their areas of strength across all projects. Thus, have the work of a panel of experts at service!

Mr. B.Tolachand Nahar: Founder & Managing Director

Nahar Foundation’s Private Limited is the brain-child of Mr. Tolachand Nahar. He has spearheaded the growth of the Company with his experience in the field, knowledge of the construction business, vision of planning and insightful land acquisition deals. He leads the Company's expansion, and controls its business strategy as well as operations with his

  • 3 decades of land acquisition and real estate experience,
  • 20 years of constructing - residential and commercial buildings,
  • A strong reputation and goodwill in the society,
  • 400 home owners - their families and friends support &
  • The ever increasing family of Nahars in terms of customers and employees.
Mr. B. Sumerchand Nahar: Co-Founder & Director

Manages Purchase & Operations. Responsible for quality control, project schedule status control, procurements, and disbursements with his experience of handling 10 projects at any given moment, over two decades in understanding and improving civil work and maintaining balance between emotional work force and practical management force.

Shri.S.Mahesh Kothari

Heads Land Acquisition & Liaison

Shri.T.Rajesh Nahar

Heads Marketing, Sales, Information Technology, Finances, Bank & Public Relations.

Smt. Vanitha Jain

Heads Accounts, Human Resources and Administration.

Work Philosophy

We recognise money as the life-blood that nourishes every business – and in looking after its health and flow, we do not discriminate between our money and the customer's. This show at every level of our functioning: getting the maximum mileage out of your rupee is our goal, be it in terms of the transactions through which we acquire plots for construction, the quality of building material, the skill of the personnel or the finish of the interiors.

Our philosophy is also reflected in our choice of a low-hierarchy work environment: the Directors are personally involved in every level of work - land selection and acquisition, materials purchase, and every stage of construction from concept to completion, just as they would be if they were building their own house!

Our philosophy impels us to maximize value in everything we do.

Completed Projects

  • Presenting Sugam, a marvelous residential abode that offers a charming, comfortable and captivating lifestyle experience like none other.

    Comprising of 64 spacious apartments in 2 BHK configurations that are spread lavishly across 16 magnificent blocks, this spectacular offering sparkles with attractive features and premium amenities that will add beauty and splendour to your life..

    Launch Project
  • Revel in the glory of morning’s first light sweeping over the shimmering lake Watch a solitary fisherman on his boat cast his net with perfect skill Hear the birds chirp happily as they fly above in the radiant sky Treasure the glorious serenity that envelops you in blissful abundance and feel one with Mother Nature like never before

    Step away from the ordinary and enter a world of extraordinary opulence called Nahar Jaltarang..

    Launch Project
  • Nahar Kirwani is a prestigious residential development that combines beauty, luxury and style like none other.

    Assuring you guaranteed price appreciation by virtue of its advantageous location & charming design, this spectacular development is truly a gem of an investment that will add timeless splendour to your life.

    Launch Project
  • Coming Soon

    for the priviledged few

    Launch Project
  • Offering the promise of exclusivity, grandeur and breathtaking sea-views, Nahar Pragati is a landmark residential development in the highly-sought after premium location of Injambakkam, on the immensely popular ECR.

    Exceptionally designed with captivating craftsmanship, impressive specifications and meticulous detailing, each of the four spacious villas in the size of 3000 sq ft, offer you the combination of an elegant living and the convenience of being in the midst of a rapidly growing locality of the city.

    Launch Project
  • A captivating and beautiful residential development, Nahar Ojasvi offers a valuable lifestyle experience to its privileged residents.

    Lavishly spread over a verdant site area of 3.77 grounds and rising majestically in the eminent and highly sought after locality of Injambakkam, Nahar Ojasvi comprises of 4 well appointed row houses that are embellished with alluring features and attractive finishes with stylishly designed floor plans, well lit interiors and lush green exteriors that will ensure years of profitable returns to your investment..

    Launch Project
  • An accomplished example of the true meaning of splendour, Nahar Dwarakaa at Thiruvidanthai on the East Coast Road opens to the most exotic piece of beauty on earth. 16 luxury apartments spread spaciously over 1006 sq.ft to 1072 sq.ft. of built up space arise on a land extent of 3 sprawling grounds.

    Launch Project
  • Nahar Mathura is a luxury abode comprising of 16 apartments set in a tranquil location at Thiruvidanthai with fabulous views over the vast stretch of greenery off the East Coast Road. The development featuring contemporary architecture and high-end finishing opens the doors to living in harmony in a secure gated community with excellent connectivity to the city.

    Launch Project

Land Owners

With Nahars you would gain:

  • Exceptional quality, Aesthetic design at Affordable prices.
  • With standing structure, functional designs and classic elegance.
  • Timeliness in delivering quality homes.
  • Compliance with CMDA/ Local body guidelines and approvals.
  • Good return on investment with excellent sales and better rental value.
  • Clear and appropriate documentation.
  • Better assistance in sales to JV partners with our mammoth clients database

We invite landowners of 2 grounds and above to enter into a fair and profitable Joint Venture or Outright Purchase. Driven by the belief of building aspirations and fulfilling them, we assure a transparent and hassle-free transaction and an opportunity to make the most of your asset.

Joint Venture / Outright Sale Form

Note :There is likelihood for the same property to be referred to us by multiple mediators. To avoid any disputes in this regard. We wish to inform all the mediators that Nahar Foundation's Pvt Ltd. would always deal with one mediator for each property and that would be the first mediator who would have referred this property to Nahar Foundation's Pvt Ltd. In the event that the first mediator is unable to get us a contact with the owner within 15 days we would consider the second mediator to do the same.

Joint Venture

What would I gain by a Joint Venture?
  • Value Appreciation : By jointly developing your property with Nahar, you would benefit from increasing real-estate prices. This plus would not exist if you sold your land outright
  • Capital Gains Tax Exemption : By re-investing in flats/offices/shops, you would ensure that you are exempt from paying Capital Gains Tax, subject to the relevant rules and clauses
  • Savings on Stamp-duty and Registration : The buyer of a property pays Stamp-duty and Registration Charges (10%). But if you opt to retain flats/offices/shops built on your own property, you would not be required to pay these, as you are the land owner. Thus you save 10% over buying the same flats/offices/shops elsewhere.
  • Lucrative ROI : Once you enter into a Joint Venture with us, and we build on your property, the value of your property will escalate greatly, and your net worth will rise correspondingly. You will also be the proud owner of a branded landmark in the city!
  • Built-to-suit Facility : We will develop your property exactly as you wish to see it developed. Every specification will be approved by you, and you will see your dreams for your land given concrete shape.
  • Maintenance & Upkeep of Individual Bungalows: A big task : Comparatively, luxury flats/apartments are easy to maintain and upkeep as servants are available at hand as other apartment owners would be willing to share domestic help. Association of the apartments would handle overall maintenance of the buildings and also the day to day issues like electrical, plumbing, civil work and security.
  • Secured living : Security in numbers, owning an apartment would be like living in a non theft zone. Security agencies are appointed by association of the building, cost of which is divided amongst all. Also, enjoy a vacation with your family with complete peace of mind.
  • Community living : A bigger family : “Social living is cool living” – G4 statement. In apartment style living, you make friends, live with family and relatives. A safe and joyful living.

NRI Help

1. 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 UN organisations 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).

2. Who is a person of Indian Origin?

For the purposes 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, he, at any time, held an Indian passport,

OR

He or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or Citizenship Act, 1955 (57 of 1955).

Note : A spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or of a person of Indian origin is also treated as a person of Indian origin for the above purposes provided the bank accounts are opened or investments in shares/securities in India are made by such persons only jointly with their NRI spouses.

For investments in immovable properties, A Foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal), is deemed to be of Indian origin if, he held an Indian Passport at any time,

OR he or his father or parental grand-father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

3. What is an OCB?

Overseas Corporate Bodies (OCBs) are bodies predominantly owned individuals of Indian Origin or nationality resident outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts in which at least 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 at least 60%.

4. 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 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 following facilites:

  • Maintenance of Bank accounts in India
  • Investments in securities/shares of, and deposits with, Indian firms/companies.
  • Investments in immovable properties in India.
6. Do non-resident Indian citizens require permission of Reserve Bank to acquire residential/commercial property in India?

No.

7. Do foreign citizens of Indian origin require permission of Reserve Bank to purchase immovable property in India for their residential use?

Yes. However, Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are, therefore, not required to obtain separate permission of Reserve Bank.

8. In what manner the purchase consideration for the residential immovable property should be paid by foreign citizens of Indian origin under the general permission?

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.

9.What are the formalities required to be completed by foreign citizens of Indian origin for purchasing residential immovable property in India under the general permission?

They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.

10. Can such property be sold without the permission of Reserve Bank?

Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

11. Can sale proceeds of such property if and when sold be remitted out of India?

In respect of residential properties purchased on or after 26th May 1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property.

12. What is the procedure for seeking such repatriation?

Applications for necessary permission for remittance of sale proceeds should be made in form IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property.

13. Can foreign citizens of Indian origin acquire or dispose of residential property by way of gift?

Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not, provided gift tax has been paid.

14. Can foreign citizens of Indian origin acquire commercial properties in India?

Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser's NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

15. Can they dispose of such properties?

Yes.

16. Can sale proceeds of such property be remitted out of India?

Yes. Repatriation of original investment in respect of properties purchased by foreign citizens of Indian origin on or after 26th May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of payment of final instalment of consideration amount, whichever is later. Applications for the purpose are required to be made to the Central Office of Reserve Bank within 90 days of the sale of property in form IPI 8.

17. Can the properties (residential/commercial) be given on rent if not required for immediate use?

Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income has to be credited to NRO account.

18. Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?

Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd. etc. to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to certain conditions.

19. Can authorised dealer grant loans to NRIs for acquisition of flat/house for residential purposes?

Authorised dealers have been granted permission to grant loans to NRIs for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. Repayment of loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investor's NRE/FCNR/NRO accounts.

20. Can Indian companies grant loans to their NRI staff?

Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passport subject to certain conditions.

21. While purchasing real estate most developers demand a Power of Attorney in their favour, is there a way to avoid it?

One can choose not to grant the Power of Attorney (POA) to the developers. However this will mandate the mailing of all documents to your foreign residence and associated time delays. A good compromise is to grant the POA to the builder only for specific necessary items. If you are an NRI or a Property Buyer/Investor you need to understand your Investment Horizons in Real Estate pretty well.

22. What are the options available for obtaining guarantors while applying for a HDFC/LIC loan

One will need a guarantor for a loan mainly for collateral security. The guarantor will have to demonstrate appropriate net worth to cover for the loan. Usually one can have a guarantor in any city where the loan issuer has a branch. Talk to loan issuers they will work something out for NRIs and foreign banks.

23. What are the criteria regarding avail of home loans for NRIs in India?

According to Reserve Bank guidelines for NRIs The loan amount shall not exceed 85% of the cost of the dwelling unit. Own contribution, which is the cost of dwelling unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India. Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.

24. Can an NRI give a Power of Attorney to a person in India for completion of loan formalities on their behalf?

Yes. We very well understand that as an NRI you have a different set of needs with respect to your real estate management and investment requirements and we also understand that it needs special set of services to cater to your requirements. The good news from India is that government has allowed 100% repatriation for NRIs. Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC,LIC Housing Finance Ltd.,etc. to grant housing loans to non-resident Indian nationals for acquisition of houses/flats for self-occupation subject to certain conditions.

25. How much loan can one get?

You can get a Home Loan of up to 85% of the Total Consideration Value.

26. What are the conditions if the power of attorney is being executed outside India?

The attorney should preferably be a resident of India. The power of attorney should be executed on a stamp paper/plain paper as the case may be as applicable in the country in which the power of attorney is executed. Any authorized official of the Indian Embassy/Consulate/Trade commissioner in the country where the executants resides should attest the signature of the executants. The attorney's signature should be verified in India by Notary Public or his employer or his banker on a separate piece of paper, which should be submitted to SHFL together with the power of attorney.

27. If I were to apply for such a loan, what would be the documents I would be required to submit?

The documents you would be required to submit are:

  • Employment contract (if the contract is in a language other than English, the English translation of the same attested by the Embassy/Employer should be given)
  • Latest salary slip
  • Latest work permit
  • Identity card issued by current employers
  • Visa stamped on the passport
  • Continuous Discharge Certificate (CDC) - (if applicable)
  • Overseas Bank Account Statement for the last four months. Property Related Documents:
  • Receipts for payments made for purchase of the dwelling unit
  • Copy of approved drawings of proposed construction/purchase/extension
  • Agreement for sale/sale deed/detailed cost estimate from Architect/Engineer for property to be purchased/constructed/extended
  • Allotment letter from the co-operative society/association of apartment owners
Term of Investment

This is important as you need to hold on for at least 1 to 3 Years for a decent capital appreciation and if you sell your property within 3 years you are in for a short term capital gains which is at par with the Income Tax rules of nearly 30 to 35% as applicable. It is better to stay invested for 3 years and then plan the next investments with Capital Gains etc.

Pre-Launch offers

Investing in property means also an entry load by paying stamp duty and registration fees and other incidental charges to the Builder etc. If you are investing it is always wise to invest as soon as the project is launched as this gives you enough time for appreciation as usually the builder goes in the Stock Market kind of a mode in the first year of its property by hiking the prices every few months.

Know your Builder

It is imperative to know your Builder and the project as at the time of your exit the builder has to be extremely co-operative, the first question to shoot when you are buying an Under Construction Project is - If I sell what happens? When can I Sell? Will you charge me some transfer fees? How the paper work will be done between the Seller, Builder and the Buyer? Invest with Deep Thought - The present market is volatile in Mumbai and it is imperative for you to give a deep thought on various accounts, which begins from the Project, Infrastructure available within the Project, Outside the project in the neighborhood, Selling prospects, Leasing prospects, Neighborhood development, Distances to Schools, Markets, Malls, Hospitals, Highways, Airports, Railway stations etc. These should act as your analysis points.

For NRIs

especially before coming to India, make sure you are carrying most of the relevant papers with you. You should always have an NRE and an NRO account in India and if you are looking to invest in Mumbai then one should have an account in Mumbai for easiness. Review your NRI allowances by the Government of India every budget etc.

Home Loans

You can set off your EMI's if you invest wisely in a property as the rates are presently around 8% and your rental returns are around 4-6%. You can be a happy man if you do this fool proof homework as your EMI can be hedged off against the rent receipts to a certain degree.

Re-Sale Properties

In a booming market every property owner wants to encash his property at the best value. A few issues which we face is the commitment level of the seller and we can stumble on to good transactions at times, but this is more of a time consuming process at times. The repair value, old building and other property documentation issues can be challenging in certain transactions.

Returns

It is always advisable to take a conservative approach in both Capital Appreciation and Rental returns. However one can safely expect appreciations anywhere upwards of 15% Per Year and Rental Yields of 4 to 6%.

Commercial and Malls

The opening of new Malls is surely a good sign but one has to be very careful in investments in Malls and Commercial real estate. The returns though can be constant, but for smaller players the Malls and Commercial complexes can be too hot to handle as the outgoings are pretty steep and there is a huge difference between the built up and carpet ratio. It is excellent for self use and business or for a pre-leased option.

Home Loans

1. What is a Home Loan?

A home loan is a loan taken for buying or constructing a home or to make improvements to a residential property. You can get a loan from banks and registered housing finance companies. Your home loan is secured against the property that you buy. This means that in case you are unable to repay the loan, the lending bank will have the right to take possession of your home.

You need to be familiar with two terms relating to home loans:
  • Principal amount: This is the total loan amount that the lender gives you
  • Interest rate: This is the cost of the loan that you pay to the lender
The amount of the loan, i.e. the principal, which you can avail of, is decided by the lender based on:
  • Your income
  • Your loan repayment capacity
  • The house (property) you wish to purchase
As a borrower, you can choose the type of interest rate that you will pay. You can either pay:
  • Fixed rate: Where the interest rate remains fixed during the life of the loan
  • Floating rate: Where the interest rate floats or changes depending upon market interest rates

Additionally, you can also choose the loan repayment period that you are comfortable with.

2. Do I need to pay any cash up front, or will the lender loan the entire amount?

Yes, you will need to put in a down payment of up to 15%-20% of the value of the property upfront (figure can vary by lender). Home loan lenders usually do not finance the total cost of the property.

3. What are the choices of repayment period of home loan?

You can choose a repayment period from 12 months - 300 months (1 year - 25 years) for your home loan in India. During this period you will be making a fixed monthly payment to the lender. This payment is called EMI – Equated Monthly Installment. Please note that usually post-dated cheques of the home loan EMI amount are taken upfront, at the time of the loan grant. This EMI is a fixed amount that you pay on a monthly basis and stays constant during the life of the loan (unless you change the tenure, i.e. length of the loan). However, the home loan interest and principal component of the EMI change on a monthly basis.

4. What are the fees associated with home loans –before and after disbursal of home loans?

There are charges and fees to be paid both before the loan is disbursed to you, as well as during the life of the home loan. Before the disbursal:

  • Processing Fee

    Most lenders would take a cheque of the home loan processing fee along with the application form. This fee is mostly non-refundable. So be prepared to pay up to Rs 5,000 as processing fee at the beginning of the process.

  • Legal and Technical Charge

    Many lenders recover the costs that they incur for legal and technical verification of the property. These are known as legal and technical charges. Stamp Duty You will have to pay the stamp duty to the Government on yourhome purchase transaction. Many banks also recover the stamp duty paid on the registration of the loan agreement.

    Post-disbursal:
    Prepayment and Foreclosure Charges

    Prepayment Charge is the penalty paid by the borrower for making extra payments beyond the repayment schedule. Usually, this is waived off by most lenders. Foreclosure Charges are applicable when you repay the entire amount of the home loan before the actual tenure. These days banks levy this charge only when you are doing a home loan balance transfer to another home loan lender and not when foreclosing with your own funds.

    Duplicate Statement Charges

    Every year, the lender sends you a statement detailing the amount of money that you have paid during the year towards your home loan. This amount is broken into interest paid and principal repayments. This is done for your annual tax filing purposes. If you lose this statement, the lender might charge you to issue a duplicate statement.

    Delayed Payment and Cheque Bounce charges

    Delayed Payment Charges also known as the late payment charges are levied if you make the payment after the due date. You might also be subject to cheque bounce charges in case one of your post-dated cheque bounces because of lack of funds.

5. What are the types of home loan insurance?

There are two types of home insurance that you must get.

Home Loan Insurance

When you take a home loan, you owe the lender money. If you are not able to repay then the lender will take away your home. So, in a situation where you lose your life and no surviving member of the family can repay the loan, your home may be taken away by the lender. You can protect yourself and your family by buying a Home Loan Insurance, also known as Loan Cover Term Insurance. If something happens to you, you can be rest assured that with this insurance your home loan repayment will not be at risk and your home will not be taken away.

Home Insurance Your home is your most valuable asset and the result of your life's hard work and savings. You must protect it against natural disasters such as floods or earthquakes, or against fire. Therefore, it is important to get home insurance for building and contents so that you can at least recover the replacement cost of your home or your belonging in the event that something happens to your house.

6. What are the tax benefits of home loans in India?

You can avail tax benefits for both interest as well as the principal component of your home loan.

Interest paid on the home loan

As per Section 24 of the Income Tax Act, 1961 a deduction up to Rs. 150,000 towards the total interest payable on the home loan towards purchase / construction of house property can be claimed. The interest payable for the pre-acquisition or pre-construction period would be deductible in five equal annual installments starting from the year in which the house has been acquired or constructed. This deduction is allowed only for self-occupied property. The interest towards home loan taken for construction, repairs, renewal or reconstruction of existing house property is also eligible for deduction under Section 24. Principal repayment of the home loan As per Section 80C of the Income Tax Act, 1961 the principal repayment up to Rs. 100,000 on your home loan for purchase or construction of a residential house property will be allowed as a deduction from the gross total income.

Some key points on taxation:

Tax benefit is not available if you do not have possession of the house. Two or more people who have taken a joint home loan in India can both take advantage of the tax benefit in the ratio of the EMI payment that they are making. You can take advantage of both the home loan tax benefits and HRA benefit if you are living in a rented accommodation and not in your own house. This tax benefit is not available for loan against existing property or loan taken to purchase land.

7. I bought a property last month. Can I get a home loan for the same right now?

Most lenders would consider any property bought during the last 3 -6 months as a regular home loan application. You would be eligible for the same rates and income tax benefits as any other home loan . However, if you delay and the property purchase becomes more than 6 months old it will be treated as Loan against Property. The rates for the same are higher and there would be no tax benefits as well.

8. I intend to co-own, the property with my brother, sister, father, mother. Will I be eligible for a loan?

You would not be eligible for a loan as most home loan lenders allow only immediate relatives to co-own a property. This means that a parents-son combination and a husband-wife combination is only allowed. The reason for this restriction is that if some dispute arises between the joint borrowers, their incomes might not be pooled any longer and there might be a problem in repaying the loan to the bank.

9. Can a single woman get a loan ?

Yes, a single woman can get a loan. Till a few years back, banks hesitated to give loans to single women fearing loss of income after marriage. With double income families becoming the norm rather than exception, lenders now are lending to single women as well. Many lenders also have special schemes for women offering them a discount up to 0.25%.

10. Can I get a home loan for an apartment that I want to purchase in New York?

No, currently no home loan lender provides loan for purchasing properties abroad. The primary reason being operational difficulties in property verification, disbursement and different legal structure governing both home loan and repossession terms.

11. Do professionals have special eligibility norms?

Most home loan lenders offer special privileges to self-employed professionals. They recognize the fact that in such cases, income is generally under stated and the earning potential of such individuals is higher than what has been disclosed. Every Housing Institution (HFI) has its own conditions regarding the type of professionals they would cater to. The HFI also decides on the qualifications required for such professionals to qualify for the relaxed norms for loan eligibility calculations.

12. Can I get two home loans against two different properties?

Yes, you can have as many loans against different properties. The only criteria being that you should be able to repay all the EMIs every month.

13. Is there any loan provision for purchase of land?

Yes, loan for land purchase is available as long as it is for residential purposes only. Many mortgage lenders like HDFC and State Bank of India offer this loan. You can get up to 85% of the purchase amount based on your credit profile and paying capacity. You get no tax breaks if you take a loan to buy a plot of land. But, if you take a loan for construction, that means a loan to build a house on that plot of land, then you can get a tax break. In such a case, the tax benefits are available on both portions of the loan the one to purchase the plot and the one taken to construct the house thereon. Please note that the benefits under Section 80C and Section 24 can be availed only when the construction of the house is complete.

14. Can a NRI (Non Resident Indian) avail of a housing loan?

Yes, Non Resident Indians can avail of a NRI housing loan to buy a property in India. However, the loan disbursement process as well as the terms & conditions for a loan taken by a NRI are different than regular home loans granted to Indian residents.

15. What is a “pre-approved property”?

Many large builders get their projects “pre-approved” by specific home loan lenders. The lender examines the legal documents of the title of that project, the stage of construction as well as the builder's track record to complete the project in time. It then declares all properties in the project to be “pre-approved”. You do not need to go for legal and technical checks in case of a “pre-approved” property.

16. What is Pre EMI?

You've chosen a property that's yet under construction. So the lender makes the disbursement in parts based on the progress of the construction of your property. However till the housing loan is fully disbursed you have to pay simple interest at the rate you have agreed upon with the lender. This is known as the Pre EMI. And from the month following in which the full disbursement is made you will start paying your EMI.

17. What is Floor Space Index?

Floor Space Index refers to the ratio of the built up area of a property to the area of the land on which it is built. An FSI of 60% would mean that the total built up area of the building can be equal to only 60% of the area of the land on which it is being built. There are FSI specifications released by the relevant municipal body or development authority for all construction in its area. It is also known as Floor Area Ratio (FAR).

18. What is a fixed rate home loan ? When should one opt for a fixed rate home loan?

A fixed rate home loan is one where the interest rate on home loans charged by the lender is constant over the tenure of the loan. It is advisable to go in for a fixed rate only if you feel that the rate of interest prevailing in the market have touched rock bottom and the rates can only move upwards. Here are the latest offers on a 10 year fixed rate home loan and 20 year fixed rate home loan from the leading banks and housing finance companies in India.

19. What is a floating rate home loan? When should one opt for a floating rate home loan?

A floating rate home loan is one where the home loan interest rate charged by the lender keeps changing with respect to the rates in the market over the tenure of the loan. Typically, the rate charged is on the basis of their cost of funds and the prevailing market rates. These rates change periodically. Accordingly the tenure increases or decreases or alternatively the EMI increases or decreases based on whether the rates move upwards or downwards. Every home loan lender decides whether to change the rate of interest or change the tenure at the time of sanction. It is advisable to go in for the floating rate if you feel that the interest rates have reached its peak and can only go downwards. Here are the latest offers on a 10 year floating rate home loan and 20 year floating rate home loan from the leading banks and housing finance companies in India.

20. Can I convert my loan from fixed rate loan to floating rate loan & vice versa?

Yes, you can convert floating rate home loan into a fixed rate one with no extra charges. However, to convert a fixed rate product to a variable rate product, most banks will charge a small fee. The swap can be done any number of times and at any point of time.

21. Can the Fixed Rate of Interest change during the loan repayment?

The Fixed Rate of Interest ideally remains fixed over the tenure of the loan. This rate does not change after the final disbursement has been made. It is ideally suited for situations where you expect the rates of interest to go up in the future and this fluctuation in the rates does not affect you adversely. In cases where the disbursement is spread out over a period of time and the rates might have changed in the interim. The rate of interest would remain fixed at the final weighted average rate at which the loan was disbursed. Nowadays, many lenders are reserving the option of changing the rate on a fixed rate home loan after 3 or 5 years. So please read the fine print before you sign up for a fixed rate home loan.

22. What happens to processing/administrative fees if I don't avail of the disbursement?

Most lenders do not refund the fees that you pay to them if you cancel the loan after taking the offer letter from them. However, there are few Govt. owned banks which do offer full or partial refund. Almost all the lenders refund the money in case the loan is not sanctioned.

23. What is the difference between monthly rest & annual rest?

In a monthly rest, the interest is calculated on the outstanding principal at the beginning of every month. Once the interest is calculated at the rate applicable to you for the month it is deducted from the EMI received during the month. Annual rest works on the same principal only the interest is calculated on your outstanding principal at the beginning of every year. It is also commonly known as “Yearly Reducing Balance”. Monthly reducing balance is a better option all other things being equal as you get immediate credit for repayment and the interest component keeps reducing almost immediately on a monthly basis.

24. What are the charges other than interest that are levied by home loan lenders?

Almost all lenders charge certain administrative or processing fees apart from interest for providing a home loan in India . You must compare all these charges as well before signing on to a home loan contract.

  • Legal fees - payable to the lender or to the legal consultants of the lender
  • Technical or Valuation charges - payable to the lender or to his technical consultant.
  • Stamp duty on creation of mortgage - some banks charge this fee whilst other banks normally just have a clause that requires this to be paid in the event the state government actually charges this amount. The escape route for non-payment of this duty are progressively being eliminated and the fact that the consumer carries the liability to pay this duty in the future if demanded by the state government along with interest and penalties in the future. So, this should not really be used by a consumer to eliminate a lender just because he is paying this stamp duty to the government.
  • Prepayment Charges - This is the biggest charge that most consumers miss taking into account. A loan can be prepaid either in part or in full at any given point of time. You can also prepay a loan even when it is only partly disbursed. However, most banks have an upper limit on the number of times a person can prepay his loan in a year as well as on the minimum amount you can prepay each time. Until recently, banks charged a penalty for part or full prepayment. Increased competition has forced most banks to allow repayment without any charges if it is funded from own sources. In case the borrower, is transferring the loan to another lender he will need to pay the full charges.
25. What are the tax benefits that I can avail of for repaying a home loan?

You will be eligible to claim both the interest and principal components of your repayment during the year.

  • Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 150,000 or the actual interest repaid whichever is lower. (You can claim this interest only when you are in possession of the house)
  • Principal can be claimed up to the maximum of Rs. 100,000 under Section 80C. This is subject to the maximum level of Rs 100,000 across all 80C investments.
  • You will need to show the statement provided by the lender showing the repayment for the year as well as the interest & principal components of the same.
26. Can I take advantage of tax benefits from a home loan as well as claim House Rent Allowance (HRA)?

If you took a home loan and are still living in a rented place, you will be entitled to:

  • Tax benefit on principal repayment under Section 80C.
  • Tax benefit on interest payment under Section 24.
  • HRA benefit.

Of course, you can claim tax benefits on the home loan only if your home is ready to live in during that financial year. Once the construction on your home is complete, the HRA benefit stops. If you took a home loan, got possession of the house, have rented it out and stay in a rented accommodation, you will be entitled to all the three benefits mentioned above. However, in this case, the rent you receive would be considered as your taxable income.

27. I have a home loan in which I am a co-applicant. However, the total EMI amount is paid by me. What is the total income tax exemption that I can avail of ?

Yes, you can claim income tax exemption if you are a co applicant in a housing loans long as you are also the owner or co owner of the property in question. If you are only person repaying the loan, you can claim the entire tax benefit for yourself (provided you are an owner or co-owner). You should enter into a simple agreement with the other borrowers stating that you will be repaying the entire loan. If you are paying part of the EMI, you will get tax benefits in the proportion to your share in the loan.

28. I have two housing loans on two different properties. Can I get tax rebate under sec 80 C of both the loans?

Yes, you can get the 80C benefit on both loans. However, the total amount that you will be entitled to will be a total of Rs 100,000 across both the homes. The interest paid on a home loan is not directly deductible from your salary income for either of your flat loans. Income from house property will be calculated for each flat you own. If either of these calculations shows a loss, this loss can be set off against your income from other heads. As for Section 24 deduction, on yourself occupied house you can take advantage of interest payments up to Rs.1,50,000. For the other property, you can claim actual interest repaid, there is no limit for the same.

29. Is the EMI amount or the tenure of the loan affected if the value of the underlying property falls?

Fluctuating value of the property does not affect your EMI or your home loan liability. If you fail to repay your home loan you will be damaging your credit profile and any chances of getting a loan in the future. In such a case, where you want to dispose of the property because of loss in value – you will be much better off if you prepay your home loan and then sell the property.

30. Is it necessary to get property insurance, while availing a home loan?

Most lenders do not insist on property insurance when disbursing a loan. However, it is strongly advised to buy insurance as your home would be one of your most valuable assets. The home insurance rates are very affordable especially when bought for a long duration say 10 years. It would cost close to Rs. 50 per lakh of property value per year.

31. Can I sell the property, even when the home loan is outstanding?

Yes, you can sell the property with the consent of the lender. This consent letter usually mentions the amount at which the home loan can be considered fully paid off. This amount is inclusive of prepayment charges as applicable and calculated at a future date to give you enough time to find a buyer. Based on this letter, you can negotiate with potential buyers.

If the buyer, wants to take a loan to purchase the property the process is much simpler if he approaches the same lender. Then the lender does not need to release the title papers to another lender before getting the payment.

If the buyer wants to make an outright payment- he can make the payment out to the bank directly based on the consent letter. And the balance amount is paid out to you. The property papers will be released only after the bank has recovered the entire amount including prepayment charges.

32. Can I increase or decrease the amount of the loan even after it has been sanctioned?

Yes, the change in amount can be done at any point before disbursement. Any increase in loan amount will however be subject to the eligibility conditions. The bank might also charge you excess fees on requesting an increase in the loan amount. The bank is not obliged to return excess fees paid in case you are requesting for a reduction in the loan amount.

33. Is it advisable to transfer a home loan from my existing provider?

Please be clear on why you wish to change your loan provider?

  • Is it because you want a better interest rate and change in EMI?
  • Is it because of service?
  • Or, any other reason?

There is usually a pre-payment penalty for the loan, so please understand that you will lose some money when you transfer out of your present lender. Additionally, the new lender might also charge you a loan processing fee. So, you might end up paying two types of fees during this transfer. Ask both the lenders what the fee will be. Make sure that you do the calculations of whether you will really save money with the transfer or not. The last thing you want to do is pay all these hidden charges. Also, practically speaking, you want to make sure that you are not going to add to your headache on the service levels.

34. What are the documents I will be asked to submit if I applied for a housing loan?
These are the documents that all applicants have to submit:
  • Allotment letter of the co-operative society/association of apartment owners.
  • Copy of approved drawings of proposed construction/purchase/extension.
  • Agreement for sale/sale deed/detailed cost estimate from architect/engineer for the property to be purchased/ constructed/ extended/ renovated.
  • If you have been in your present employment/business or profession for less than a year, you will need to give a document mentioning details of occupation for the previous 5 years, giving information about the position held, reasons for change and period of employment.
  • Any other information regarding your repayment capacity that is necessary.
These are the documents that all applicants have to submit:
  • Verification of Employment Form with only Part I filled in
  • Latest salary slip/salary certificate showing all deductions
  • If your job is transferable, permanent address where correspondence relating to the application can be mailed
  • A letter from your employer agreeing to deduct the monthly installment towards repayment of the loan from your taxable salary
  • Any other information regarding your repayment capacity that is necessary
If you are self-employed, you will need to submit:
  • Balance Sheets and Profit & Loss Accounts of the business/profession
  • Copies of Individual Income Tax Returns for the last three years certified by a Chartered Accountant
  • A note giving information on the nature of your business/profession, form of organization, clients/suppliers, etc.
5 Vital Tips on Home Loans.
  1. To increase your loan eligibility,combine your income with that of your spouse, children or parents
  2. Always negotiate - the first home loan interest rate quoted is never the final rate
  3. Before paying the loan processing fee request lender for preliminary check on the property
  4. Buy Loan Protector Life Insurance - ensure your family can use the house if you are not alive
  5. Immediate disbursement get best rates - talk to home loan providers when you are close to finalizing your property

Vaastu

Master Bedroom - Southwest corner

If your flat has more than one floor then make sure the master bedroom is on the top floor. The ceilings of the floor must always be in level.

Children’s room - Northwest corner

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Bathroom - West or South

Bathroom drains must always flow in the north-east

Drawing room - Northwest

Furnishings must be placed in the south and west directions.Maximum open space must be kept in south and east directions.

Kitchen - Southeast

The cook must always face east when cooking.The water taps in a kitchen must be in the Northeastern direction.

Study Room - Northeast, Northwest, North, West, East corners

Make sure the study room and pooja rooms are adjacent to one other. This is considered very auspicious. The study table should be kept in Eastern or Northern wall.

Store Room - Southern part of the building

Grain and other supplies should be stocked inside the kitchen or in any other room. Things must never be stored inside the box beds, as it can cause sleeping disorders.

Wastes from the kitchen - Southwest corner of the kitchen

The Waste Bins must always be kept covered

Doors - North and East

The waves that rise from the doors influence the mind of the person entering from the door.

Guest Room - Northwest direction

The room in northwest is also considered to be very auspicious for unmarried girls.

General Room - North-West
Water-Tank - North-West
Balconies - North, East Or North- East directions

Eastern balcony is very auspicious according to Vastu

Puja room - Northeast
Windows - Eastern and Northern sides of a building

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