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Name : Alliance Email  :  info@alliancebuilderindia.com Date  :  9/13/2006

Question : What should be the method of payment for purchasing residential immovable property in India by foreign nationals of Indian origin under the general permission?

Answer : 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 banks in India

Name : Alliance Email  :  info@alliancebuilderindia.com Date  :  9/13/2006

Question : Do non-resident Indian nationals require permission of Reserve Bank to acquire residential / commercial property in India?

Answer : No permission is required by non-resident Indian nationals to acquire immovable Property in India.

Name : Alliance Email  :  info@alliancebuilderindia.com Date  :  9/13/2006

Question : Are foreign nationals of Indian origin allowed to purchase immovable property in India?

Answer : Yes, foreign nationals of Indian origin, whether resident in India or abroad, have been granted general permission to purchase immovable property in India

Name : Alliance Email  :  info@alliancebuilderindia.com Date  :  9/13/2006

Question : What way the Non-resident Indian can finance the flat?

Answer : The purchase of the flats can be financed from the fresh remittance through the normal banking channels or from payment from original non-resident account or from Non-resident (External) Accounts. When the flat is under construction, it may be possible to get instalment facilities from the builder. Loan may also be available in India for purchase of flats, for example from Housing Development Finance Corporation, ANZ Grindlays Bank, Citi Bank etc. Non-resident Indians who are citizens of India (India Passport holders) are eligible for housing finance for the acquisition of an immovable property or construction of a new house, or a flat for their occupation or for that of their family in India. But the HDFC also considers granting of loans to non-resident Indians even if they are abroad, provided a family member of his or her in India is made a co-borrower and a power of attorney is given to his representative in India

Name : Vimal Bora Email  :  vimal.b@rediffmail.com Date  :  12/19/2007

Question : What is a fixed interest rate & floating interest rate?

Answer : Fixed interest rate for Home loans is one where the rate charged by the HFC on the loan amount is constant over the tenure of the loan. A fixed interest rate protects the borrower from a rise in home loan rates. While on the flip side, he may not benefit if the market rates were to fall. Therefore, it is advisable to go in for a fixed rate if you feel that the rate of interests in the market have touched rock bottom and the rates can only move upwards. Floating interest rate for home loans is a loan where the interest rate which is payable is linked to the market rate e.g. the bank lending rate. The interest rate payable by you will also rise and fall as per bank lending rates which may fluctuate.

Name : Vimal Bora Email  :  vimal.b@rediffmail.com Date  :  12/19/2007

Question : What is the basis of interest rates calculation?

Answer : Home loans interest rate in India is usually calculated either on monthly reducing or yearly reducing balance. In the Monthly reducing system, the principal on which you pay interest reduces every month as you pay your EMI. While in the Annual Reducing system the principal is reduced at the end of the year, thus continuing to pay interest on a certain portion of the principal which you have actually paid back to the lender thus making EMI for the monthly reducing system effectively lesser than the second system of calculating interest.

Name : Asmit Email  :  asmit@gmail.com Date  :  12/19/2007

Question : If a gift is made to two or more persons of whom one or more of them does not/do not accept the same, what is the impact of such non-acceptance on the interest of the donee/s accepting the same?

Answer : Under Indian Law , the presumption is that the transfer by gift to two or more persons is as the tenants-in-common i.e. each donee getting a distinct share in the property gifted. The relevant provision is contained in Section 125 of the Transfer of Property Act. Therefore, while the gift will be void only to the extent of the share of such donee who does not accept it, if the gift is made to two persons jointly and one of them does not accept it, the another one cannot take the whole.