Welcome to G&Cs FAQ Page.
In this section you will find answers to the most commonly asked questions about G&C, its services and related processes. We also have a dedicated section for Home Loans and NRI Real Estate Investments which will give you an overview on the respective topics. As we have a fairly large number of question, we have used Clickable Questions to give you a faster browsing experience while at the same time, keeping the Q&A list as comprehensive as possible. In order to view the answers to questions that are of interest to you, simply click on the question and the answer will slide out from beneath the respective question. To close the answer, simply click on the question again. You can click and simultaneously open as many questions as you like, without having to close any of the same.
Incase you are unable to find answers to any of your questions, please write to us using the Contact Us Form in the Contact Us page, and one of our team members will respond with an answer in 48 to 72 hours.
Why G&C Global?
To know why you should consider G&C to be your preferred real estate advisors, head over to our blogpost at wordpress – (gcglobal.wordpress.com). To put it short, we are unique due to the following reasons :
i) Being principle channel partners of top builders, we get exclusive allotement of best projects under Pre-Public Launch. Here an investor can make between 50% - 400% returns on his investment.
ii) We offer credible builders’ projects across all key cities of South, thus giving you access to all alternatives possible in all markets for you to choose, irrespective of your buying through us or not.
iii) Single Stop Solution provider – We can take care of the entire purchase cycle right from handling paperwork on your behalf, re-selling and re-investing, to arranging bank loans from leading lenders, to paying your property related taxes, etc all under one roof.
iv) Guidance & Mentoring and Unbiased Advice on projects, irrespective of your buying through us or not.
What does it cost me to get this service ?
It takes a lot of effort, time and money for G&C and its team to bring you the best of investment opportunities from all leading builders across South India. And as with all the best things in life, our services too come at a cost, albeit a nominal one. We charge a standard fee of 1.5% the property cost (excluding registration and stamp duty cost) for purchase of pre-public launch and 1% for all other purchases and 2% on sale price for resale of your property. But compared to the benefits/profits that you make by investing through us, you end up making anywhere between 50% to 400%. Hence in the end, it’s a win-win situation for all!
What else does G&C offer ?
At G&C, we strive to be your one stop shop solution provider for all your real estate needs/requirements in India. Apart from handling all the basic processes of purchase and sale of commercial and residential properties, we also provide the following value added services, most of which are free of charge and included as part of our service fee :
i) Arranging Home Loans from India’s leading lenders/banks/HFCs
ii) Tax Filing services for NRIs (to assist you in paying property taxes, capital gain taxes, etc)
iii) Property Management Services* - Renting/Leasing and Maintenance of properties bought through G&C.
iv) Joint Ventures / Development of land
v) High End Interiors Execution
vi) Legal Services for property transactions through credible channel partners.
vii) Free Newsletter from time to time and access to best properties of the market.
Who are the people behind G&C Global ?
G&C is a privately held organization and was founded by a dynamic couple – Mr.AVR Chowdary and Mrs.A Gouthami. Mr.AVR Chowdary (Founding Chairman) comes with 20 years of market experience in one of India’s leading public sector conglomerate. With encouragement from all clients and well-wishers of G&C, even 2nd generation has been drafted to get into company immediately after their management education. They have been imbibed into company’s culture since 2006 and now play key roles in the company with an eye on making G&C one of the top in India. Our vision is to expand branch network throughout country in all major capitals and eventually become an international player.
How do I reach G&C Global?
For any queries, assistance, guidance or complaints, you can reach us by sending us a mail at email@example.com or alternatively, give us a call. For more details please visit the Contact Us page for complete contact details (branch-wise details available). If you are not happy with G&C services, feel free to directly reach out to the founding chairman at firstname.lastname@example.org .
Why is G&C so privileged to get such pre-public launch deals?
Right from G&C’s inception in 2004, the founding chairman of G&C has continuously structured top class commercial projects for a number of leading builders across South India and during the course of these 8 years he has established close ties with the proprietors/owners of all these developers and builders. As a result of this close association and proximity to the builders and its top management, G&C is able to enjoy the unique privilege of providing its patrons with access to signature projects of these builders at discounted/special prices before the same are launched to the public. Moreover, in all the projects that we promote, G&C is the only and exclusive channel partner as a result of which these opportunities are available only through G&C and not accessible in the open market.
Home Loan FAQs
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 (Lenders) 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 Instalments (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 Simple 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.
What is the rate of interest for the duration of the loan?
Rate of interest generally vary from bank to bank & on profiles. Most lenders offer fixed rate as well as the variable rate options to customers. Contact us to know the current rate of interest.
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.
What are the other areas of expenditure involved in procuring 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.
How do I select my lender?
What is the maximum amount of housing loan available?
The maximum amount is 80% of the cost of the property, including the cost of land, subject to a maximum amount of Rs 3 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 instalments usually should not exceed 40% to 50% per cent of your gross monthly income. Besides this, lenders 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 20 years (15 years max for NRIs), but definitely before you retire. A few Lenders also offer a 25-year repayment period, usually at a higher interest rate.
How do I apply for a loan?
Send us a mail to know more on this as we work with India’s leading lenders/financers and hence can get you the best industry rates coupled with class leading service.
Is a guarantor required?
A guarantor is insisted on by the lender 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 lenders will charge a pre-payment fine for this.
Do I get tax benefits on the loan?
Yes. Ordinary Indian Residents are eligible for certain exemptions on both the principal and interest components of the loan as per the Income Tax Act, 1961. Please check with your CA/Financial planner for the latest tax rules on this regard.
In how many instalments can the loan be disbursed?
The loan can be either disbursed in full for outright-purchase/ready properties or in a few instalments for under construction properties. The disbursement will be made taking into account the requirement of funds and the progress of construction.
What security do I have to provide?
By default, the first mortgage of the property to be financed is given to the lending/financing firm. Hence no other security is required.
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. We can help you with this incase you need our assistance.
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 lender 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. Incase the property is Pre-Approved by the lender (almost 90% of the properties that we recommend are pre-approved in advance by all leading lenders), the disbursement can happen 3 days after issue of sanction letter.
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 lender disburses any instalment of the loan. However in exceptional cases, parallel funding may be possible.
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 Lenders 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 Lenders.
What are the eligibility conditions for a home loan?
To qualify for a home loan, most of the lending institutions in India require you to be:
A resident Indian or NRI
Above 21 years of age at the commencement of the loan
Age to be less than 58 years on loan termination for salaried class of cutomers or below 65 of age on loan termination
Either salaried or self employed.
What are the other costs that usually accompany a home loan?
Home loans are usually accompanied by the following extra costs:
• Processing Charge: It's a fee payable to the Bank / FIs on applying for a loan. It is either a fixed amount not linked to the loan or may also be a percentage of the loan amount.
• Pre-payment Charges: When a loan is paid back before the end of the agreed duration, a fee is levied by some banks / companies, which is usually between 1% and 2% of the outstanding loan amount.
• Commitment Fees: 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.
• Miscellaneous Costs: It is quite possible that some lenders may levy a documentation, Legal charges, Technical charges etc in the absence of Processing fees.
• Registered mortgage deed or Creation of Memorandum of Understanding / Entry. Stamp duty payable on this will have to be paid by customer.
What is the time required for loan disbursement?
On an average, loans are disbursed within 7-15 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.
Can I make joint applications for home loans?
Normally only the close relatives like spouse, parents, brothers are allowed as co-applicants. All co-owners of property will have to be co-applicants.
Can a loan be switched over if I have obtained it at a high rate of interest, but another lender is offering a better interest rate?
You could do this. After discussing the reasons with the current lender, they may even reconsider the interest rate.
Do NRIs require permission of Reserve Bank to acquire immovable property in India?
No. NRI's do not require any permission to acquire any immovable property in India other than agricultural / plantation property or a farm house.
Do NRIs require permission of Reserve Bank to transfer immovable property in India?
No. NRI's do not require any permission to transfer any immovable property in India. Permission is required only in the case of transferring of agricultural or plantation property or farm house to another citizen of India NRI or PIO.
Do PIOs require permission of Reserve Bank to purchase immovable property in India for their residential use?
Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property other than agricultural land/farm house/plantation property, in India. They are, therefore, not required to obtain separate permission of Reserve Bank or file any declaration.
In what manner should the purchase consideration for the immovable property be paid by PIOs 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 any non-resident accounts maintained with banks in India.
Can such property be sold without the permission of Reserve Bank?
Yes. Reserve Bank has granted general permission for sale of such property. However, where another foreign citizen of Indian origin purchases the property, funds towards the purchase consideration should either be remitted to India or paid out of balances in non-resident accounts maintained with banks in India.
Can sale proceeds of such property if and when sold be remitted out of India?
In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a NRI or PIO, the authorised 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 case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
What other facilities are available for repatriation?
Authorised dealers can allow remittance up to USD 1 million for any purpose, per calendar year from balances in NRO accounts subject to payment of applicable taxes. The limit of USD 1 million per year includes sale proceeds of immovable properties acquired by the NRI/PIO's while they were resident in India and held for a period of 10 years and above. In case the property is sold after being held for less than 10 years, remittance can be made if the sale proceeds were held for the balance period in NRO account or in any other eligible instruments.
Can NRIs/PIOs rent out the properties (residential/commercial) if not required for immediate use?
Yes. 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 is eligible for repatriation
Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?
Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., to grant housing loans to NRI's for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of loan margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investor's NRE/FCNR/NRO Accounts.
Can authorised dealers grant loans to NRIs for acquisition of a flat/house for residential purposes?
Authorised dealers have been granted permission to grant loans to NRI's for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. 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.
Some of the features/criterias of these loans are :
i. The applicant must be an Indian passport holder.
ii. Loan amounts are available up to Rs. 3 crore (or 80%) of the cost of the property, whichever is lesser. Processing and administrative charges extra.
iii. Loan eligibility is decided by the repayment capacity of the individual. Repayment capacity takes into consideration income, age, qualification, number of dependents, other income, amounts and a few other items.
iv. Repayment period ranges from 5 to 15 years or on superannuation or on completing 60 years of age.
v. The security for the loan would be the equitable mortgage of the property financed. This is created by the deposit of the original title deeds of the property with the HFI.
vi. Local guarantors will also be required in the case of a few institutions.
vii. A salaried applicant should be abroad for at least a year, and a self-employed applicant for 3 years.
- Yes No