NRE/FCNR/NRNR/NRO Accounts can be opened and
maintained with all our branches in India
We are having a world wide network of
correspondents and we maintain foreign currency accounts in 14 currencies. Non resident
Indian can utilise services of these banks for remittances to an account maintained with
any of the branches of Federal Bank in India.
General permission has been granted to all our
branches to purchase foreign currency instruments drawn outside India and Indian rupee
drafts issued from outside India and payable in India. They are also empowered to credit
such rupee drafts to NRE accounts at par.
Various banks and exchange houses having branches/
offices in almost all major centres in Middle East are maintaining rupee drawing
arrangement with our bank.
Around 150 branches are authorised to pay at par
against drafts received under this arrangements enabling faster remittance to India.
M/s.AI Rajhi Banking and Investment Corporation,
Riyadh, Saudi Arabia is having a TELE REMITTANCE ARRANGEMENT with us. Payment instruction
received through E. Mail/Telex will be processed immediately and proceeds couriered to the
customer's banker on the same day itself from Ernakulam.
We have Special Scheme of Housing Finance upto Rs.
25 lakhs for NRIs. All our branches are authorised to grant and service such advances
depending on size and merit of the case.
Returned NRIs can open RFC account with our
selected major branches
Loans and overdrafts to NRIs are
governed by the rules and regulations made by Reserve Bank of India. These are permitted
only against NRI deposits, Resurgent India Bonds, shares, securities and immovable
properties.
Loans/overdrafts against the security of NRE/FCNR
deposits/Resurgent India Bonds are permitted for personal/business purpose and also for
investment on non repatriation basis subject to the terms prescribed by Reserve Bank of
India. Loans/overdrafts against the security of NRNR/NRO/NRSR deposits can be availed for
purpose other than investments.
Loans/overdrafts can be availed for personal
requirements and or for own business purpose against shares/securities, immovable
properties (other than agricultural/plantation property or farm houses)
In one of the above case loans will be available
for relending , carrying out agricultural/plantation activities investment in
agricultural/plantation activities or farm house or in real estate business.
Within the above frame work loans can be availed
from our branches under the following retail products as per details available elsewhere
in the site.
| Federal
Housing Scheme |
|
| (FHS) is in a class
of its own in terms of cost, lowest processing time, covering all possible activities in
Housing, without prepayment penalty and without any hidden cost, whatsoever.Our product
now offers at par facilities to NRIs which were hitherto available only to residents. |
|
| Benefactors |
|
The Federal Housing
Scheme aims at lending mainly for residential Housing anywhere in India to individuals,
(who are preferably at the age of 55 or below) association of individuals, Groups of
individuals, and individual members of Cooperative Societies. NRIs holding Indian
Passports who have been working abroad for a minimum period of 3 years and having monthly
income of Rs. 10,000 are also eligible. He/ She should be a major and should be between 25
to 55 years of age. The repayment should not go beyond the retirement age normally.
However in cases where the co-obligant is also an employee, repayment can be extended upto
the retirement age of the co-obligant or till the maximum loan period whichever is
earlier. |
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| The
installments of the proposed loan shall not exceed:- |
|
1. |
a) |
Employed persons -
if he/she has no other income other than the salary, the total deduction shall not exceed
50% of BP+DA+other allowances of permanent nature such as HRA and conveyance allowance. |
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b) |
If the borrower has
other income too, apart from salary, installments shall not exceed 50% of the total
income. |
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2. |
Other
cases |
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|
|
Installments
of the proposed loan shall not exceed 30% of their total monthly income. |
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|
| Purposes |
|
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|
|
a) |
For acquisition of
land and construction of a house in that land or for acquisition of ready built house/flat
or for acquisition of flat under construction. In case of outright purchase of land with
building or construction of house in the land already owned, value of the building should
not be less than 60% of the total project cost or 60% of the loan amount whichever is
lower. |
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b) |
For repairs,
renovation of existing house/flat. |
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c) |
For construction of
independent apartment upstairs if the applicant has not availed of loan for construction
of the ground floor. |
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d) |
In case of NRI
borrowers, loan will be considered for possession of only one house/flat for self
occupation on his return to India. |
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|
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e) |
For purchase and
complet that is for purchasing a plot with building where it requires some more works to
be done so as to get the house completed. |
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f) |
For purchase and
remodeling/repairing. |
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|
That is
for purchase of ready built houses where some remodeling/repairs are to be carried out so
as to make it suitable/convenient for living. |
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| Quantum Eligible |
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|
|
The
maximum loan amount shall be Rs 25 L for both residents and Non-residents.For repairs,the
maximum amount of loan will be Rs 3L and for renovation/extension resulting in enlargement
of the living area, loans upto Rs 10 L can be considered.In the case of purchase and
completion, remodeling/repairing, the loan portion for the balance work shall not exceed
30% of the loan amount or Rs 3 L whichever is lower. The age of the building in this case
shall not exceed 10 years. |
|
| Margin |
Own
contribution to an extent of 20 to 25% of the cost of House/Flat is to be met from own
sources for both residents and non-residents.In case of NRIs, the payment of margin money
can be made by debit to NRO/NRRD accounts of the borrower besides direct remittance from
abroad through banking channel or by debit to NRE/FCAB accounts as the case may be of the
borrowers. |
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Loan Period |
|
| Maximum
period shall be 15 years for both residents and non-residents Indians. |
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| Repayment Holiday |
|
Maximum
repayment holiday shall be 12 months for both residents and non-residents. No repayment
holiday is allowable in the case of ready to occupy houses/flats. |
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| Mode of Repayment |
|
The loan
amount with interest shall be repaid in equated monthly/ quarterly/ half yearly/ yearly
basis depending on the repayment capacity. In the case of non-residents, repayments may be
made out of funds in NRE/NRO/FCAB/NRRD accounts. |
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| Rate of Interest |
|
| Upto Rs.2 L |
13% |
| Above Rs.2 to 5 L |
13.5% |
| Above Rs.5 L |
14% |
|
|
It will
be our endeavor to keep the interest rate constant over the duration of the loan. However,
the Bank reserves the right to revise the rates of interest prospectively either up or
down as per RBI norms/Bank’s policy. |
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| Processing Fee |
|
The only
charge payable for all the procedures right from the first inquiry to the disbursal of the
loan is limited to 0.1%. No prepayment penalty is charged. |
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| Securities |
|
Primary security |
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| Equitable
mortgage of the property and the building to be constructed/existing. |
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| In the
case of construction of new house, the security shall be the property that is to be
acquired/owned and the building constructed thereof. No other collateral / additional
security is insisted.This is applicable in the case of construction of additional floor as
a separate unit as well as for repairs/renovation/extension etc. to the existing housing
unit. However, disbursement will be made strictly in stages according to the progress of
work after ensuring that the borrower has invested his margin. |
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| Interim Security for Purchase of Built Houses/Flats |
|
In the
case of purchase of ready built houses/flats there usually exists a time gap between
either payment or registration of the title and creation of mortgage. During the interim
period, other security(in options as mentioned below) equivalent to the amount of loan has
to be offered. This interim security can be released once the primary security is
mortgaged to the Bank.Equitable mortgage of property, assignment of LIC policy/pledge of
gold ornaments/Govt. securities/ Bonds/ shares/units of UTI etc. |
|
OR |
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| Guarantee
of one or two salaried persons acceptable to the Bank. |
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| Co-obligant |
|
Spouse
of the borrower shall join as co-obligant/ guarantor in applicable cases.However the Bank
is open to consider co-obligancy of the father or son or another member of the family
where the co-obligancy of the spouse is difficult/beyond scope.Loans will be granted to
NRI as the principal borrower with a resident close relative as co-obligant/guarantor or
on the security of the land jointly owned by NRI borrower. |
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| How to Apply |
|
| Loan
application in the prescribed format together with the following details/documents may be
submitted to the nearest branch. |
|
|
1. |
Plan of
land and building and estimate prepared and certified by a qualified architect/engineer. |
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2. |
Sanction
from local bodies. |
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3. |
Documents/papers
evidencing the income of the borrower. |
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4. |
Documents
of the title to the property. |
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5. |
In the
case of NRIs, the documents evidencing their status and income shall be furnished. |
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|
The
title deed will be subject to scrutiny by the Legal Advisor of the Bank on formal sanction
of the loan. All efforts are put in to make fast the credit delivery system treating
Housing sector as priority. |
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|
| NRI HOMES |
|
| Purpose |
|
|
1. |
For
acquisition of land and construction of a house in that land or for acquisition of ready
built house/flat or for acquisition of flat under construction, purchase and completion of
the incomplete houses. |
|
|
2. |
For
repair/ remodelling/renovation/extension of existing house/flat |
|
|
3. |
If the
party has not availed any loan for the construction of ground floor and the property is
free from all encumbrances, a fresh loan or full eligible amount under FHS can be
sanctioned for constructing a separate housing unit with independent amenities upstairs,
provided the whole building is offered as security. |
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|
| Eligibility |
|
Any
non-resident holding Indian passport who has been working abroad/doing business for a
minimum period of 3 years having a monthly income sufficient enough to meet the prompt
repayments of the loan subject to a minimum income of INR 10,000/- can approach for a
loan. He/She should be within the age group of 25 to 55 years.Those who are employed,
shall submit the following documents as a proof to establish monthly salary. |
|
|
Latest
salary slip wherever available. |
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Copy of
identity card issued by Employer; |
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Copy of
visa stamped on passport. |
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In cases
of Non-resident applicants other than employed persons, sources of income and monthly
earnings thereof should be indicated. |
|
|
Loans
should be granted for acquisition of only one house / flat for self occupation by NRI
borrower on his return to India and not for any other purposes. |
|
| Quantum of Assistance |
|
Loan amount could be a maximum of 75% of the cost of the project including
the cost of the land subject to a maximum of Rs. 25 lakhs subject to the stipulated margin
in the case of construction. In the case of ready built house / flat loan amount would be
a maximum of 75% of the value shown in sale deed subject to a maximum of Rs. 25 lakhs.
Margin money can be made by debit to NRO accounts of the borrower as well besides direct
remittance from abroad through banking channel or by debit to NRE/FCNR accounts as the
case may be of the borrowers. |
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| Period of loan |
|
| The
period of loan including cushion period shall not exceed 15 years. |
|
Cushion Period |
|
A
cushion period of 12 months would be allowed in the case of fresh constructions. No
cushion period will be applicable in cases of ready purchases (i.e. already completed
buildings). The repayment will commence within 4 months from the date of last disbursement
in the case of houses / flats under construction. |
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| Repayment |
|
The
entire loan amount together with interest shall be repaid within 15 years i.e. within 180
EMIs. Further the repayment can also be made out of the funds holding NRO accounts of the
NRI borrowers |
|
Rate of interest |
|
Rate of interest at the time of sanction would be subject to the interest
rate directives issued by Reserve Bank of India from time to time. |
|
For further details: www.federal-bank.com |
