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NRI UK

Home is where the heart is, and for many who are based out of India, that part resides in their motherland. No matter where you go, being able to come back to your own home in India is a dream that many hold fast to. However, the process of buying a house in India, which includes finding the right property, certifying builder credibility, dealing with legalities, getting all the necessary property documents and finances in place, can seem like a challenging one for those not based in India.

With international representative offices at London which is easily accessible, you can now take advantage of our NRI Home loan services from any part of the world.

Get in touch with the UK Representative Office:

Picture1 Dewan Housing Finance Corporation Ltd. 7A, Walpole Court,
Ealing Green, London, W5 5ED
Picture1 Tel: +44 (0) 20-8579 1711
Picture1 Fax: +44 (0) 20-8579 1712
Picture1 E-mail:london@dhfl.com

Features of Home Loans for NRIs in UK


Here at DHFL, we respect your dream and devote ourselves to helping you achieve your objective of being able to call a part of your homeland your own. With a well thought-out NRI Home loan offering, we help you find the most simple home loan solutions easily and without any hassle. Our systems will help guide you through every step, beginning from property search, financial options as well legal and technical checks or any other requirements.

  1. Loans to help purchase new build property as well as land purchase, construction requirements or resale property.
  2. Funding of up to a maximum of 80% of cost of the property
  3. Loan tenure of up to 20 years
  4. Pre-sanction facility available where property is not yet identified
  5. Competitive interest rates
  6. Repayment via Electronic clearing facility from Non-resident accounts

The DHFL NRI Home Loan Advantage:

  1. Convenient and easy communication right from your base of operations with our international representative offices
  2. A dedicated officer aiding you at every stage of the process
  3. In-house legal and technical assessment and evaluation of the property
  4. Network of over 450 offices across India catering to specific local requirements
  5. Loan solutions for self-employed customers including contractors and doctors as well as salaried employed segment
  6. Professional handling of all paperwork required in India
  7. Services dealing with property search in the event that prospective property is yet to be identified, through our group company, DHFL Property Services.

For property services related enquiries, please contact DHFL Property Service executive on +91-22-71583337 OR visit our website: www.dhflpsl.com


FAQs

  1. What are the types of home loans that DHFL offers?

    There are a variety of home loans you can benefit from:

    1. Home purchase loan: Common loan for purchasing a home.
    2. Home improvement loan: Loan given for implementing repair works and renovations to your home.
    3. Home construction loan: Loan available for the construction of a new home.
    4. Home extension loan: Given for expanding or extending an existing home – eg. Addition of an extra room, etc.
    5. Land purchase loan: Sanctioned for purchase of land, for both home construction or investment purposes.
    6. Bridge loan: Designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home.
    7. Home Loans for Self Employed: Specially tailored Home Loans for Self employed Professionals and Non-Professionals such as Small retailers, Doctors, Architects etc.
    8. Plot Loans: Loan for Purchase of Non Agriculture Plot Loans across India
  2. Home Loan Transfer?
    Transfer of Home Loans from other Housing finance companies or Banks
  3. What is an EMI?
    EMI (Equated Monthly Installment) is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal.
  4. How is The EMI calculated?
    The formula for calculating EMI is
    EMI Formula: l x r [(1+r)n /(1+r)n-1 ] x 1/12
    l = loan amount
    r = rate of interest
    n = term of the loan
  5. What are the eligibility conditions for a home loan?
    To qualify for a home loan with DHFL, you must be:
    1.An Indian resident or NRI
    2.Above 21 years of age at the commencement of the loan
    3.Below 60 when the loan matures
    4.Either salaried or self employed
  6. What are the interest rates offered for home loans? What are daily reducing, monthly reducing and yearly reducing?
    Interest rate varies according to the market conditions and interest rates are dynamic in nature. The interest on home loans in India is usually calculated either on monthly reducing or yearly reducing balance. In some cases, daily reducing basis is also adopted.

    1. Annual reducing: In this system, the principal, for which you pay interest, reduces at the end of the year. Thus you continue to pay interest on a certain portion of the principal which you have actually paid back to the lender. This means EMI for the monthly reducing system is effectively less than the annual reducing system.
    2. Monthly reducing: In this system, the principal, for which you pay interest, reduces every month as you pay your EMI.
    3. Daily Reducing: In this system, the principal, for which you pay interest, reduces from the day you pay your EMI. EMI in the daily reducing system is less than the monthly reducing system.
      DHFL calculates EMI on monthly reducing basis only.
  7.  What is a fixed rate of interest?
    Fixed rate of interest means the rate of interest remains unchanged for the entire duration of the loan. This means you do not benefit even if home loan interest rates drop in the market during the course of your loan.
  8.  What is a floating rate?
    In this case, the rate of interest fluctuates based on the market lending rate. This means you stand the risk of paying more than you budgeted for in case the lending rate goes up.
  9. What are the other costs that usually accompany a home loan?
    Home loans are usually accompanied by the following costs:

    1. Pre-payment Penalties: If the Housing loan is under Variable/Floating Rate loan and the loan is prepaid through any source, no prepayment charges shall apply If the Housing loan is under fixed rate, the prepayment charges shall apply except in the cases in which the customer is paying out of his ‘Own Sources’. The expression ‘own sources’ indicates that the proceeds of the prepayment should be from ‘any source other than from a bank/HFC/NBFC and/ or a financial institution’.
      All other Loans would continue to attract pre-payment penalty upon pre-closure, as per the terms and conditions of the loan agreement which is duly signed and executed by the customer.
    2. Commitment Fees: DHFL doesn’t take any commitment fees from consumers, while some Institutions levy a commitment fee in case the loan is not availed of within a stipulated period of time after it is processed and sanctioned.
    3. Miscellaneous Costs: DHFL levies a minimal charge of ` 220* only for Standard documentation charges.
  10.  What are the repayment period options?
    Repayment period options range generally from 5 to 15 years. DHFL offers loans from whose tenure range from 5 to 15 years.
  11.  How does DHFL decide on the loan amount?
    DHFL will finance up to a maximum of 80% of the cost of the house, depending on various factors such as customer’s profile, property, Customer saving’s habits etc. The balance 20%, sometimes called ‘Seed money’ or “Own contribution”, will have to be provided by the loan applicant. The amount, for which the applicant is eligible, is determined by the age, income, no. of dependents, monthly outgoing and repayment capacity. This varies from case to case.
  12.  Are securities required for home loans?
    In most cases, the property to be purchased itself becomes the security and is mortgaged to the lending institution till the entire loan is repaid. Some institutions may ask for additional security such as life insurance policies, FD receipts and share or savings certificates. DHFL doesn’t ask for Securities. Securities will be asked by DHFL only in few exceptional cases only.
  13. Do I require a guarantor to get a home loan?
    DHFL doesn’t ask for Guarantor. One can have co-applicant instead, while some other financial institutions does ask for 1 or 2 guarantors.
  14. What is the right time to apply for a home loan?
    Loans may be applied for before or after selection of property. The loan amounts are sanctioned in principle to let buyers know what amounts they can avail of. This helps them decide their budgets and purchasing power. Actual disbursements are made after satisfactory verification of all necessary documents and completion of specific procedures.
  15. What is the time required for loan application approval?
    About 3-15 days, subject to proper documentation provided by the Home loan applicant.
  16.  What is the time required for loan disbursement?
    On an average, loans are disbursed within 3-15 days after satisfactory and complete documentation and completion of all relevant procedures, including proof that 20% of the cost has been paid upfront to the seller of the property.
  17. Can I make joint applications for home loans?
    DHFL allows Joint applications for Home Loans. If the property has a co-owner he should be a co-applicant for the Home loan, DHFL may consider the joint incomes of the applicants for deciding the Home loan amount.
  18.  How do I repay my home loan?
    You repay the loan in Equated Monthly Installments (EMIs) comprising of the principal and interest. Repayment by way of EMI commences from the month following the month in which you have taken full disbursement.
  19.  What is Pre-EMI interest?
    When the property is under-construction, the loan amounts disbursed are proportionate to the stage of construction. In such a scenario, the amount of interest payable on the disbursed loan amount is called the Pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.
  20.  What is meant by “Own Contribution”?
    Own contribution (margin money) is the cost of unit financed, less the loan amount. It should be paid by the borrower by remittances from outside India through normal banking channels or out of funds in his Non-Resident External (NRE)/Foreign Currency Non-Resident (FCNR)/ Non-Resident Ordinary (NRO) account in India. Such payments cannot be made either by traveler’s cheque or by foreign currency notes or by other mode other than those specifically mentioned above. DHFL will disburse the loan only once the Own Contribution has been paid by the borrower and proof of clearance on the same is provided.
  21. Can I submit my loan application at your international and avail the loan in India?
    Yes. DHFL has its international representative offices in UK and Dubai; our staff will help you with documentation; handhold you through the process and liaise on your behalf with the Underwriting team and Disbursement team in India to ensure the process is smooth all times. The loan disbursement can be taken by you or your Power of Attorney holder in India only.
  22.  Do I need to be physically present to avail a loan?
    You do not have to be present in India to complete the loan application process. As a NRI at the time of submission of loan application and disbursement of the loan, you can avail loan by appointing a Power of Attorney (POA) to be executed as per DHFL POA format. Your power of attorney holder can apply and carry out the formalities on your behalf.
  23. Who can be co-applicants?
    All owners of the property need to be Co-applicants in the loan.
  24.  What are the important documents one should check before buying any property?
    If you want to purchase a property, you must see the approved layout plan, approved building plan, ownership documents, carryout search, etc. Consult an advocate before you purchase a property so that he can advise you.
  25. What is the difference between built up area, super built up area, and carpet area?
    1. Carpet Area: This is the area of the apartment/building, which does not include the area of the walls.
    2. Built up Area: This is the area of the apartment/building which includes the area of the walls.
    3. Super Built up Area: This includes the built up area, along with the area under common spaces such as the lobby, lifts, stairs, etc. This term is only applicable to multi-dwelling units.
  26. Who is liable to pay Stamp Duty-the buyer or the seller?
    The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary.
  27. In whose name are the Stamp Papers required to be purchased?
    The stamp papers are required to be purchased in the name of any one of the executors to the Instrument.
  28.  What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement?
    Market value means the price at which a property could be bought in the open market on the date of execution of such instrument. The Stamp Duty is payable on the agreement value of the property or the market value whichever is higher.
  29. Which are the instruments that attract the payment of Stamp Duty?
    The instruments that attract Stamp Duty on market value of the property are:

    1. Agreement to Sell
    2. Conveyance Deed
    3. Exchange of property
    4. Gift Deed
    5. Partition Deed
    6. Power of Attorney settlement and Deed
    7. Transfer of lease
  30. Who is the appropriate authority for knowing the market value of the property?
    The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property.
  31. Is a POA revocable?
    Yes, a POA can be either revocable or irrevocable, depending on what sort of a POA one has made.
  32. What exactly do we mean by a Free Hold property? What are the advantages and disadvantages, if any?
    A freehold property (plot or a property) is one where there is a whole and sole owner(s), ownership is full and unconditional (within the provisions of the laws of the land) and there is no lessor/lessee involved.
  33. How to convert a POA property into a Free Hold?
    POA cannot be converted into anything. Leasehold properties of DDA in Delhi can be converted to freehold, as per provisions.
  34.  How to verify the authenticity of the various documents submitted by the seller of the property, particularly with regard to the possibility that the property has not been sold earlier to a third party?
    Regarding authenticity of documents, again, you have to take the help of an advocate.
  35.  I want to gift a property in a Co-op. Hsg. Society. What are the legal formalities? What about stamp duty?
    Gift of an immovable property is considered as a ‘transfer’ under the provisions of the TOP Act and you have to have the transaction registered through a Gift Deed and pay stamp duty as per provisions of the relevant State’s Stamp Act depending in which state the property is situated.
  36.  Upon buying a property from a builder in a building under construction, what are the permissions and papers that one should check with the builder, so as to ascertain the genuine of the builder?
    When you are buying a property from a builder in a building under construction, you have to check the following:

    1. Approved plan of the building along with the number of floors.
    2. Ensure that the floor that you are buying is approved.
    3. Check if the land on which the builder is building is his or he has authority under an agreement with a landlord. If so, check the title of the land ownership with the help of an advocate.
    4. Check the building by-laws as applicable in that area and ensure that the builder is building without any violation of front setback, side setbacks, height, etc.
    5. Check specifications given in the agreement to sell of the sale brochure. Is he providing the same actually on the ground or not?
    6. Check the reputation of the builder.
    7. Ensure that urban land ceiling NOC (if applicable) has been obtained or not.
    8. Permissions from water and electricity authorities also have to be obtained.
    9. Permissions from lift authorities and other Government agencies as applicable.


Download Forms

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Documents Required for NRI Home Loan

General List (Documents for all applications):

  1. Application form duly completed and signed
  2. Copy of passport and stamped valid visa
  3. Copy of proof of address i.e. Utility bill, tenancy agreement etc
  4. Copy of Identity and address proof for Power of Attorney in India

Document List for applicants Employed as Salaried:

  1. Copies of latest salary slips (last 3 months)
  2. Copies of Appointment letter/ Employment contract
  3. Copy of latest year’s P60 form
  4. Copies of Bank account statement for the last six months (Current/Checking account including salary account, Savings and Non-resident accounts – NRE/NRO)
  5. Consumer credit check report. The same can be accessed by logging on to either www.experian.co.uk or www.equifax.co.uk

Document List for Self-employed (Including self-employed professionals such as contracts and doctors):

  1. Last 3 years Tax returns for the Company and Personal Tax returns if the same has been filed
  2. Profit and Loss accounts & Balance sheet of the Company
  3. Company Incorporation Certification along with Memorandum and Articles of Association
  4. Copies of current valid contract and previous contract if available
  5. Copies of invoices for last 6 months
  6. Copies of company bank account statement for the last 6 months.
  7. Copies of personal bank account statement for the last 6 months (Current, Savings and Non-resident accounts – NRE/NRO)
  8. Consumer credit check report. The same can be obtained by logging on to either www.experian.co.uk or www.equifax.co.uk
  9. Company credit report. The same can be obtained by logging on to www.ukdata.com
  10. Copies of proof of highest educational qualification


NRI Home Loan Service & Charges

DHFL ensures that you get the best services on your home loan, please find below the charges applicable on services associated with your home loan:

Charges Home Loans
Prepayment Charges If the Housing Loan is under Variable/Floating Rate loan and the loan is prepaid through any source, no prepayment charges shall apply. If the Housing loan is under fixed rate, the prepayment charges shall apply except in the cases in which the customer is paying out of his ‘Own Sources’. The expression ‘own sources’ indicates that the proceeds of the prepayment should be from ‘any source other than from a bank/HFC/NBFC and/ or a financial institution’. All other Loans would continue to attract pre-payment penalty upon pre-closure, as per the terms and conditions of the loan agreement which is duly signed and executed by the customer.- No penalty will be charged on any part prepayment, in a financial year, up to 20% of the loan outstanding as at the beginning of the financial year.
Dishonor of Payment Cheque return charge of `250/- + service tax as applicable per instrument is payable in case of a dishonored cheque and ECS.
Re-Substitution Charges 2% on principal outstanding of the loan
Late Payment Charges 1.5% per month
Miscellaneous Costs DHFL levies a minimal charge of `220 only for Standard documentation charges.

Note:

  • Service Tax and other taxes, levies etc are applicable as per prevailing rates over and above these charges
  • The rates, fees, charges etc as stated herein above are subject to changes / revision from time to time at the sole discretion of DHFL


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