© 2013 Indraprastha
With a humble start in 2004, Indraprastha has grown to be one of the reputed real estate developers in Karnataka by offering projects of luxurious and ergonomic designs, specifications, location and pricing. Armed with a strong conviction, we have proved that hard work and focus always pays, as, in such a short span of time we have made our mark in a highly competitive market with some rapid achievements.
Our core focus has always been on consistent growth and delivering quality projects. Our strict adherence to international standards has succeeded in putting us on the threshold of quantum growth – a growth aspired by many, and one that has paved our path to the future.
To set the benchmarks in the real estate industry with a holistic responsibility towards its customers, peers, employees, partners, vendors and, our society. Our operations should result in sustainable value creation and growth not just for us, but for all our partners and stakeholders. Our customers and partners must develop trust and confidence in us, for the values we follow and the principles we adhere to, and recognize us as the most preferred and respected company in the real estate sector.
Indraprastha – Dedicated to Excellence
Our values are the foundation for all our endeavours :
Commitment & Integrity – to our customers, employees, vendors, partners in transparent and fair dealings leading to a long term relationship.
Honest & Transparent – in all our dealings with our customers, authorities, employees and partners.
Trailblazers – to challenge existing and establish new standards in our industry.
Mutually Beneficial – value creation for our customers, growth to our employees and providing sustainable business models for our partners. We believe in taking everyone forward, with us.
Socially Responsible – to be aware and embrace responsibility of the impact of our activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere and to help the under privileged sectors of the society.
1. Who can apply for a home loan?
Any Indian Resident, Non-resident Indian or Person of Indian Origin can apply for a home loan if they are 21 years of age at the origin of the loan and 65 years or below at loan maturity. Housing Finance Companies (HFCs) usually give home loans for properties located in India to people who are employed or self-employed, with a regular source of income.
2. When can a home loan be applied for?
An individual can apply for a home loan even before the property has been selected. The loan amount is sanctioned based on the ability to repay. This helps in planning a budget while purchasing the house.
3. How does the lender calculate eligibility?
Loan eligibility is calculated based on the ability to repay. Factors such as income, age, qualifications, number of dependants, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history are taken into consideration.
4. How do I repay the loan?
You can repay the loan in Equated Monthly Instalments (EMIs) comprising principal and interest. Repayment by EMIs commences from the month following the month in which you take full disbursement. Till then, you only need to pay the interest on the amount disbursed.
5. What is pre-EMI interest?
Before final disbursement, you may have to pay interest on the portion of the loan disbursed. This is called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of EMI commencement.
6. Is there a fixed interest rate for the duration of the loan?
Most HFCs offer the fixed rate as well as the variable rate options to customers.
7. What is a fixed rate loan?
A rate of interest that is constant throughout the duration of the loan is known as a fixed rate loan.
8. What is a floating rate loan?
A floating rate is when the interest rate on the loan changes according to the rates in the market during the period of the loan.
9. It is better to opt for a fixed or a floating interest rate?
If interest rates are falling, a floating rate loan is a better option. But when interest rates are rising, opt for a fixed rate loan, because you will then know in advance what your EMIs will be.
10. Is there a difference between monthly rest & annual rest?
On the basis of the principal at the start of every month, the interest is calculated in monthly rest. For annual rest, this is done at the beginning of every year.
11. How is the interest calculated on my loan?
Most HFCs follow the yearly reducing balance method, which accounts for your principal repayments only at the end of their financial year. Thus you pay interest on the principal that you have already returned to the HFC during the year. The effective interest rate is thus higher than the quoted interest rate by around 0.7 per cent. Banks and some HFCs, in contrast, follow the daily or monthly reducing balance method, which results in a lower interest burden.
12. What are the other areas of expenditure before I get a home loan?
Processing and administrative fees, pre-payment charges and delayed payment charges, legal fees, technical fees, stamp duty and registration of mortgage deed are all likely areas of expenditure.
13. How do I select my HFC?
Various considerations would help you zero down on the HFC most suitable for your loan requirements. Analyse the following points before taking your decision:
• Loan amount: The minimum and maximum loan amounts vary between HFCs. Find out if the amount you require falls within this limit.
• Duration: There is no lower and upper limit to the tenure of the loan. Find out if the time limit you want it for can be accommodated. This varies between HFCs. Normally HFCs offer loans ranging from 5-20 years, with some going up to 30 years. For NRIs the maximum tenure could be 10 years in some cases. Depending on your requirements, this would have a bearing on the loan you opt for.
• Interest rate: This varies between HFCs. Fix a duration that you want the loan for and find out the EMI from them. Compare and identify the lowest EMI.
• Pre-payment: Check if the HFC charges for repaying the loan before its due date.
• Flexibility: Find out whether you can change your interest scheme from fixed to variable if so desired or if there are restrictions.
• Guarantor: Some HFCs require this, while others don’t.
• Documents required: These may vary between HFCs although there are a few standard documents like proof of income, proof of age and residence and a salary slip.
• Co-owner: If there is to be a co-owner or co-applicant for the loan, the HFC has to accept the relationship between the two.
• Other fees: Each HFC has different fees for administration and processing among others.
14. Can a loan be switched over if I have obtained it at a high rate of interest, but another HFC is offering a better interest rate?
You could do this. After discussing the reasons with the current HFC, they may even reconsider the interest rate.
15. What is the maximum amount of housing loan available?
The maximum amount is 85% of the cost of the property, including the cost of land.
16. What is the amount I can borrow and what are the criteria?
Generally, the amount is up to 2.5 times your gross annual income. But your equated monthly instalments usually should not exceed 35 per cent of your gross monthly income. Besides this, HFCs will assess your eligibility based on your ability to repay.
17. What is the period in which I will have to repay the loan?
Usually in a period of between 5 to 15 years, but definitely before you retire. A few HFCs also offer a 20-year repayment period, usually at a higher interest rate.
18. How do I apply for a loan?
• Approach an HFC with the latest salary slip and TDS Form 16 of the last two financial years for yourself and your co-applicant. The loan officer will informally tell you the amount of loan you are eligible for and the terms, in areas in which they finance homes.
• Collect a loan application form and confirm the needed documents.
• Visit more than one company since you are likely to get better terms / larger loan amount if you shop for the best deal.
• At your chosen HFC, submit the duly filled loan application along with the required documents and an application fee (around 1 per cent). They will then interview you on the same. After conducting an appraisal of your application, the HFC will give an in-principle sanction of your loan.
• You now have to submit your property documents, which should show a clear title. The HFC will check these and levy an administrative fee (around 1 per cent). It will then disburse the loan, either fully or in instalments, directly to the builder / seller of the property.
19. Who can be co-applicants for the housing loan?
Usually a spouse can be a co-applicant. Other immediate family members are also acceptable to some companies, depending on merits. If both partners are working, it is better to have your spouse as a co-applicant since this will entitle you to a much larger loan.
20. Is a guarantor required?
A guarantor is insisted on by the HFC so as to ensure that the loan is paid back in full and in time. The guarantor is responsible for the repayment of the loan if the borrower is unable to do so.
21. Can I repay the loan before the set date of repayment?
You could do this, but some HFCs require a pre-payment fee to be paid. Check with your HFC.
22. What security do I have to provide?
A first mortgage of the property to be financed. The title should be clear marketable. Some HFCs may also require collateral security like the assignment of life insurance policies, pledge of shares, NSCs, units or mutual funds, bank deposits or other investments.
23. Does the Agreement for Sale have to be registered?
Yes. In many Indian states, the agreement between the builder and purchaser has to be registered. This can be done at the office of the sub-registrar appointed by the State government.
24. Does the property have to be insured?
The property should be insured against fire and other hazards and the HFC will have to be the beneficiary of the policy.
25. How long does it take to get my application processed and my loan sanctioned?
It will take around 15 days for the processing of your application if your documents are in order. Make an application only if you are eligible for the loan since the HFC will not return the application-processing fee. It will take another week for the company to check out your property papers and make the disbursement.
26. When do I have to make my share of the contribution to the purchase price of the property?
You will have to make your payments towards the property price up-front before the HFC disburses any instalment of the loan.
27. What do I have to do when my housing loan is sanctioned?
You must submit the property papers and pay an administrative fee (approximately 1 per cent). When the HFC clears these papers, you must take the first disbursement of the loan within a stipulated period (usually three months) and avail of the entire loan within about a year’s time.
28. In how many instalments can the loan be disbursed?
The loan can be either disbursed in full for outright-purchase / ready properties or in a few instalments for under construction properties. The disbursement will be made taking into account the requirement of funds and the progress of construction.
29. Do I get tax benefits on the loan?
Yes. You are eligible for certain exemptions on both the principal and interest components of the loan as per the Income Tax Act, 1961. The principal repayment of the loan up to Rs 10,000 is eligible for a rebate @ 20 per cent U/s 88 of the IT Act. The income tax exemption limit for interest paid on housing loans is Rs 75,000 per annum on self-occupied houses. Therefore an interest payment of up to Rs 6,250 per month can be deducted from taxable income in arriving at the total income tax payment of an individual.
30. Can I get a loan for extension / up gradation / renovation of my house?
Yes, these loans are available from some HFCs. However the loan terms may be different from the usual housing loans.
31. Can I sell the property on which I have taken the loan?
Yes. But the loan will have to be repaid before the sale is effected. Some HFCs allow the transfer of loan to the buyer of the property, depending on his eligibility for loan.
32. Can I rent the property on which I have taken the loan?
Yes, this is allowed by HFCs.
1. Do NRI’s require permission of Reserve Bank to acquire immovable property in India?
No. NRI’s do not require any permission to acquire any immovable property in India other than agricultural / plantation property or a farm house.
2. Do NRI’s require permission of Reserve Bank to transfer immovable property in India?
No. NRI’s do not require any permission to transfer any immovable property in India. Permission is required only in the case of transferring of agricultural or plantation property or farm house to another citizen of India NRI or PIO.
3. Do PIO’s require permission of Reserve Bank to purchase immovable property in India for their residential use?
Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property other than agricultural land/farm house/plantation property, in India. They are, therefore, not required to obtain separate permission of Reserve Bank or file any declaration.
4. In what manner should the purchase consideration for the immovable property be paid by PIO’s 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 any non-resident accounts maintained with banks in India.
5. 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 another foreign citizen of Indian origin purchases the property, funds towards the purchase consideration should either be remitted to India or paid out of balances in non-resident accounts maintained with banks in India.
6. Can sale proceeds of such property if and when sold be remitted out of India?
In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a NRI or PIO, the authorised dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions are satisfied: -
• The immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules/Regulations/Law in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act, 1999;
• The amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency non-resident account or (b) the foreign currency equivalent, as on the date of payment, of the amount paid where such payment was made from the funds held in non-resident external account for acquisition of the property; and
• In case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
7. What other facilities are available for repatriation?
Authorised dealers can allow remittance up to USD 1 million for any purpose, per calendar year from balances in NRO accounts subject to payment of applicable taxes. The limit of USD 1 million per year includes sale proceeds of immovable properties acquired by the NRI/PIO’s while they were resident in India and held for a period of 10 years and above. In case the property is sold after being held for less than 10 years, remittance can be made if the sale proceeds were held for the balance period in NRO account or in any other eligible instruments.
8. Can PIO’s acquire or dispose of immovable property by way of gift?
Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of immovable properties other than agricultural land/farmhouse/plantation property by way of gift from or to an Indian citizen, NRI or PIO.
9. Can NRI’s/PIO’s rent out the properties (residential/commercial) 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 is eligible for repatriation
10. 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 NRI’s for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of loan margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investor’s NRE/FCNR/NRO Accounts.
11. Can authorised dealers grant loans to NRIs for acquisition of a flat/house for residential purposes?
Authorised dealers have been granted permission to grant loans to NRI’s for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. Repayment of the 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 investors’ NRE/FCNR/NRO accounts.
12. Can authorised dealers grant housing loan to NRI’s where he is a principal borrower with his resident close relative as a co-applicant / guarantor or where the land is owned jointly by such NRI borrower with his resident close relative?
Yes. Such housing loans availed in rupees can also be repaid by the close relatives in India of the borrower.
13. What are the guidelines for acquisition of agricultural land / plantation property / farmhouse by NRIs and foreign citizens of Indian origin?
All requests for acquisition of agricultural land / plantation property / farm house by any person resident outside India may be made to The Chief General Manager, Reserve Bank of India, Central Office, Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001.
For further and more upto date information please visit the FAQ Section of http://www.rbi.org.in
Indraprastha seeks land and/or partners to develop residential or commercial projects in Bangalore & Mysore. Any clear titled, non-tenanted property will be considered. We follow a joint development, lease or outright purchase model.
Interested individuals/entities, please write with details including plot dimensions, location map, width of adjacent road, applicable FAR and expected commercial terms, in strict confidence to:
Director – Business Development,
Indraprastha Shelters Pvt. Ltd.,
105-106, Richmond Towers,
12 Richmond Road,
Bangalore 560 025 INDIA
T: + 91 80 41156600 F: +91 80 22244428
A value added service provided to all customers of Indraprastha. The objective of this service is to ensure that owning a home/office at any of Indraprastha’s projects is a smooth and hassle free experience, and to reaffirm our promise of being at your service always !
Services provided include :
• Interiors – We undertake on turnkey basis.
• Assistance in renting your property
• Assistance in sale of your property
• General maintenance
• Payments of utility bills etc.
• Payments of property taxes etc.
Please use the form below to send us your request or complaint.
At Indraprastha, we believe our people to be the engines of our growth and successes and to ensure this; we take great care and pride to develop the employee friendly HR policies that we have in place.
Ask yourself the following questions to see if you fit the Indraprastha culture:
Do you have energy, drive and ambition?
Are you action and results oriented?
Do you approach your work with a positive and constructive attitude?
Are you an innovative and creative thinker?
Do you consider yourself highly accountable?
Would your peers, managers and others consider you a collaborator?
Do you strive to stay informed about trends and best practices in your profession?
Do you have a strong sense of where you are going and how to get there?
If you do, we are looking for you. Send in your latest CV to firstname.lastname@example.org and see what opportunity we may have for you !
Indraprastha Shelters Pvt. Ltd.
105-106, 1st Floor, Richmond Towers,
12, Richmond Road,
Bangalore 560 025 Karnataka INDIA
E: email@example.com T: + 91 80 41156600 F: +91 80 22244428
For sales enquiries please call +91 8880777000