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Home Loans

NAG Projects takes a fresh approach to consumer financial needs from the bank by focusing on simplicity. In a world of clutter, NAG Projects is dedicated to providing solutions to property loan needs - with speed, simplicity and ease. At NAG Projects, we believe your dream can become reality from the financial assistance of various banks to enable you to build your future.

Resident Indian

Non Resident Indian



Resident Indian


  • 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.

  • 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.

  • 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.

  • How do I repay the loan?
  • You can repay the loan in Equated Monthly Installments (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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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 form 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.

  • 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.
  • 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, subject to a maximum amount of Rs 1 crore.

  • 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 installments 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.

  • 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.

  • 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.

  • 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 installments, directly to the builder / seller of the property.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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 installment of the loan.

  • 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 percent). 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.

  • In how many installments can the loan be disbursed?
  • The loan can be either disbursed in full for outright-purchase / ready properties or in a few installments for under construction properties. The disbursement will be made taking into account the requirement of funds and the progress of construction.

  • 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.

  • Can I get a loan for extension / upgradation / renovation of my house?
  • Yes, these loans are available from some HFCs. However the loan terms may be different from the usual housing loans.

  • 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.

  • Can I rent the property on which I have taken the loan?
  • Yes, this is allowed by HFCs.

Non Resident Indian


We provide information and answers to any of your Frequently Asked Questions (FAQs) concerning Non-resident Indians (NRIs) / Persons of Indian Origin (PIOs) and for all those who do not have a trustworthy and transparent local source living outside India, about buying, selling, leasing, renting or even maintaining immovable property / Lands in and around BANGALORE. We help them to look after their Real estate / Property related affairs in Bangalore, India.

Given below are answers to most questions Non-resident Indians (NRIs) / Persons of Indian Origin (PIOs) buyers or investors, might be having in their minds & would be searching for answers. Hope this will be a good reference to all our NRI friends.

  • Who is a Non-Resident Indian (NRI)?
  • A NRI is a Person Resident Outside India who is a citizen of India or a Person of Indian origin. A Person resident outside India is a person who has gone out of India or who stays outside India, in either case
  • For or on taking up employment outside India, or
  • For carrying on outside India a business or vocation, or
  • For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period

  • Do non-resident Indian citizen require permission of Reserve Bank to acquire residential/ commercial property in India?
  • No. An Indian citizen resident outside India does not require any permission to acquire any immovable property in India other than agricultural/ plantation property or a farmhouse.

  • Do foreign citizens of Indian origin require permission of Reserve Bank to purchase immovable property in India for their residential use? If yes, what are the formalities required to be completed by them?
  • Yes, However, Reserve Bank of India has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to acquire immovable property in India for their bonafide residential purpose. They are, therefore, not required to obtain separate permission of The Reserve Bank of India. They are required to file a declaration in form IPI 7 with Central Office of Reserve Bank at Bangalore 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.
  • Hence a person of Indian origin resident outside India does not require any permission to acquire any immovable property other than agricultural land/farm house/plantation property in India by purchase, from out of funds:
  • Received in India by way of inward remittance through banking channel from any place outside India OR
  • Held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act.

  • 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 bank in India. This FAQ applies to: Buying, Estate Agents, Corporate Investors, Legal, NRI and Selling & Renting.

  • Where can permission be taken for acquisition of agricultural land/plantation property / farmhouse by any person resident outside India or foreign nationals of Indian origin?
  • All requests for acquisition of agricultural land/plantation property / farmhouse by any person resident outside India or foreign nationals may be made to The Chief General Manager, Reserve Bank of India, Central Office, Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001.

  • 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 purchasers 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.

  • Can sale proceeds of property sold by NRIs 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 the final purchase deed or from the date of payment of final installment 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
  • Hence, Repatriation outside India, including credit to RFC, NRE or FCNR account, of sale proceeds of any immovable property situated in India, requires prior permission of the Reserve Bank except in circumstances stated in paragraphs below:
  • In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a person resident outside India, who is a citizen of India, or a person of Indian origin, the authorized 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 the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
  • Authorized Dealers have been permitted to allow the facility of repatriation of funds by NRIs / PIOs in their Non-Resident Ordinary Rupee (NRO) account up to US$ 100,000/- per year representing sale proceeds of immovable property held by them for a period of not less than 10 years subject to payment of applicable taxes.

  • What are the conditions required to be fulfilled if repatriation of sale proceeds is desired? What is the procedure for seeking such repatriation?
  • Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final installment of consideration amount, whichever is later. Applications for necessary permission for remittance of sale proceeds should be made in form IPI 8 to the Central Office of The Reserve Bank at Bangalore within 90 days of the sale of the property.

  • Can foreign citizens of Indian origin acquire commercial properties in India? Can they dispose of such properties?
  • Yes, under the general permission granted by The 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 purchasers 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. Yes they can dispose of such properties

  • 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 26 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 the final purchase deed or from the date of payment of final installment of consideration amount, which ever 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.

  • Can foreign citizens of Indian origin acquire or dispose 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.

  • Can the properties (residential / commercial) owned by NRIs be given on rent if not required for immediate use?
  • Yes. The NRIs / PIOs can freely rent out their immovable properties in India without seeking any permission from the Reserve Bank of India. 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 are eligible for repatriation and hence the rental income being a current account transaction is freely repatriable outside India.

  • Can immoveable property held in India, be transferred by way of gift to relatives/registered charitable trusts/organizations in India?
  • Yes, General permission has been granted by Reserve Bank to non-resident persons (foreign citizen) of Indian Origin to transfer, by way of gift, immoveable property held by them in India to relatives and charitable trusts / organizations subject to the condition that the provisions of all other laws, as applicable are complied with.

  • Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?
  • The Reserve Bank has granted permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc, and authorized dealers to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to certain conditions. Criteria regarding the purpose of the loan, margin money and the quantum of loan will be at par with those applicable to resident Indians. 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.

  • Can an authorized dealer grant a housing loan to non-residents of Indian nationality where he is a principal borrower with his resident close relative as a co-borrower / guarantor or where the immovable property is owned jointly by such NRI borrower with his resident close relative?
  • Yes, However in such cases the payment of margin money and repayment of loan installments should be made by the NRI borrower.

  • What are the documents required for loan processing?
  • The following documents are required along with the application form: Photocopy of the labour contract duly countersigned by applicant's employer (translated to English for non-English documents).


Latest salary certificate (in English) specifying the following:

  • Name (as it appears in the passport).
  • Date of joining.
  • Passport Number.
  • Designation
  • Perquisites and salary.
  • Photocopy of labor card / identity card.
  • Photocopy of valid resident Visa stamped on the Passport.
  • Photocopy of monthly statement of local Bank account.
  • Property related documents

News Update

NAG Projects is launching its new project shortly , close to NH-7 , which is few minutes drive from Bangalore International Airport