FAQs on Housing Loan to NRIs
Who are eligible for this Housing Loan?
 All Non Resident Indians having valid Indian passport and Persons of Indian
Origin(PIO) having foreign passport.
 Minimum age 21- years and maximum age by which loan is to be repaid is 60
years.
 Spouse and close relatives of NRIs who are residents can join with NRI as joint
applicants .
 NRIs should have steady source of income with minimum employment abroad
for 2 years having valid job contract/work permit.
 The applicant should have NRI status for at least 3 years.
What are the purposes for which loan can be availed?
Loan shall be considered for
 Purchase of a ready built house / flat.
 Construction of house.
 Purchase of a site and construction of a house thereon. However, loan for the
purchase of only site shall not be considered.
 For undertaking repairs, renovation, upgradation, creation of additional
amenities, subject to the satisfaction of the Bank and monetary ceiling of Rs.15
lakhs.
 For taking over of the HL liability from other recognised housing finance
companies, housing boards, commercial banks (both public sector and private
sector banks) including SBI and its subsidiaries and foreign banks.
 For acquiring second house / flat where the borrower is already having a house /
flat with or without loan.
What is the eligible quantum of loan?
Maximum loan amount shall be Four times of annual gross income subject to NTH of
40% after proposed EMI and meeting the margin requirements.
What is the margin?
Minimum margin shall be as follows:
For Loans Up to Rs.75 lakhs -20%
Above Rs.75 lakhs -25%
What is the applicable rate of interest?
It is as follows:
Upto Rs. 75.00 lacs : Base Rate i.e., @10.20% (floating) Presently
Above Rs.75.00 Lacs : Base Rate +0.20% i.e., @10.40%(floating) Presently
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In case of Housing loan for 3rd unit and above the rate of interest shall be 1% more
than the rate mentioned above.
What are other charges payable?
Processing Charges:
0.5% of loan amount Min. Rs. 500/- & Max. of Rs.10000/-( Presently they are waived
for sanctions till 31.01.2015 provided the party avails the loan before 28.02.2015)
Inspection Charges:
Upto loan of Rs. 10.00 Lacs--Rs. 200/- per inspection with a maximum of Rs. 600/- per
year.
In case of Loan above Rs. 10.00 Lacs--Rs. 300/- per inspection or actual expenses
incurred whichever is higher.
All out of pocket expenses like Outsourcing Charges, CIBIL Charges, CERSAI Charges,
Insurance premia, LSR Charges, Valuation Charges to be borne by the borrower
What are the repayment conditions?
Repayment period is 30 years or Up to the age of 60 years (the age by which the loan
should be fully repaid) of the borrower, whichever is earlier.
What is the Repayment Holiday permitted?
It depends upon the purpose of the loan and is as follows
In case of purchase of Flat or Ready built house / takeover of liability from other FIs.-2
months.
In case of loan for construction of house, where land is already owned or purchasedMaximum 18 months.
In case of loan for purchase of semi-finished house / old house and finishing /
modification / repair of the house-Maximum 12 months.
What are various Repayment modes permitted?
These are as follows:
 Repayment in EMIs (Equated Monthly Installments).
Remittances from abroad through normal banking channels.
Funds transfer from NRE / FCNR (B) / NRO accounts.
Remittance from local funds by close relatives.
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What security has to be provided?
Equitable mortgage by deposit of title deeds.
Registered mortgage where considered necessary.
Guarantee of suitable resident Indian acceptable to Bank on case to case basis.
In case of loan for flat under construction, if putting through mortgage is
immediately not possible, then what is the procedure?
In such cases, Borrower can furnish collateral security by way of mortgage of alternate
property or pledge /assignment of approved securities equal to the loan amount.
Is there any provision/alternative in case NRI is not in a position to come to
India for execution of Bank documents?
The NRI customers who are not in a position to execute the documents in person in
India can give Power of Attorney in favour of resident close relative as per the format
that will be provided by Bank. Such POA will be stamped and registered or notorised as
per existing guidelines
What are other facilities available in this product?
 First/Joint applicant will be provided with free Credit Card with suitable limits as
per their income levels at the time of opening the loan accounts itself.
 The borrower will be provided with IMB (Internet & Mobile Banking) facility for
receiving Pass sheets and interest paid certificates on line.
Is there any provision of life insurance of proposed Housing Loan borrower
as in case of death of borrower during the currency of loan, his/her family
suffers a lot of financial hardship in meeting the payment obligations of the
loan ?
Yes, Our Bank has come out with a life insurance cover for housing loan customers
under Creditors Protection Plan of M/s. Canara HSBC Oriental Bank of Commerce Life
Insurance Company Limited – Group Insurance. For more details contact your branch.
Whether any system of in-principal sanction of Housing Loan is prevalent in
Bank?
Yes. IN-PRINCIPLE SANCTION FOR HOUSING LOANS” is a written communication to an
eligible customer through a simple letter conveying in-principle (provisional) sanction of
Housing Loan, subject to the customer satisfying all the terms and conditions applicable
for Housing loans. The provisional “in-principle” sanction is also subject to acceptability
of the property proposed to be purchased by the prospective borrower.
For more details on this aspect, you may contact nearest Canara Bank branch.
Can I submit online application for housing loan?
Yes; For submitting online loan application, you have to log on to
www.canarabank.com;You can also track the status of your loan application through
our website.
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Whether any system of in-principal sanction of Housing Loan is prevalent in
Bank?
Yes. IN-PRINCIPLE SANCTION FOR HOUSING LOANS” is a written communication to an
eligible customer through a simple letter conveying in-principle (provisional) sanction of
Housing Loan, subject to the customer satisfying all the terms and conditions applicable
for Housing loans. The provisional “in-principle” sanction is also subject to acceptability
of the property proposed to be purchased by the prospective borrower.
For more details on this aspect, you may contact nearest Canara Bank branch.
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