Who can apply for a housing loan?

Any person, including Non Resident Indians, with a steady source of income can borrow funds for financing the cost of a flat from housing finance companies and banks.

How much can a person borrow?

Loans are generally disbursed upto a maximum of 85% of the cost of the flat. The balance 15% cost of the flat is to be funded by the flat purchase from his own contribution.

What is an EMI?

Equated Monthly Installment ("EMI") is the amount comprising a portion of the interest and the principal loan amount which is payable by a borrower to the lender every month.

What is a fixed - rate housing loan?

A fixed - rate housing loan is a loan where the rate of interest is constant through the entire term of the loan period.

What is a floating interest rate housing loan?

A floating interest rate loan is a loan where the interest rate payable is linked to the market conditions such as a the bank retail prime lending rate and fluctuates with the bank rate varies. Floating interest rates are generally lower than the fixed interest rates.

Do institutions accept joint loan applications?


What are the documents generally required to apply for a housing loan?

  • Latest salary slip (proof of income for salaried individuals)

  • Photographs

  • Proof of age

  • Identity papers

  • Proof of residence

  • Bank statements for the previous six months

  • For self employed Certified copies of balance sheet, profit and loss statement and tax challans / tax returns for the previous 3 years.

  • For partnership/private limited companies The Articles of Association, partnership deed and details about the firm.

  • For NRIs latest salary certificate specifying, Name (as it appears in the passport), Date of joining, Passport Number, Designation, Perquisites and salary, Photocopy of labour card/ identity card, Photocopy of valid resident visa stamped on the passport, Photocopy of monthly statement of local bank account Property related documents.

Which sources, other than housing finance companies, can give loans for purchasing a flat?

A loan for purchasing a flat can also be availed from the following sources:

  • Banks

  • Insurance company

  • Against Provident Fund Account, Fixed Deposits, Post office Savings

  • Against Shares and Debenture of listed companies, government bonds and securities.


Which documents are to be verified before purchase of a Flat?

Before you purchase a flat, you can have a title and document search conducted by a competent advocate. It is a professional job that can be done with professional assistance.

What are all the important documents one should check before buying any property?

If you want to purchase a property, you have to look at the sanctioned plan, approved layout plan, ownership documents, partnership deed, carryout search, etc. You can use the services of an advocate before you purchase a property for advice.

Can an advocate get inspection of all title documents for the property?

The lawyer can be allowed to take inspection of all original documents pertaining to the property

How to verify the authenticity of the various documents submitted by the seller of the house, particularly with regard to the possibility that the house has not been sold earlier to a third party?

Regarding authenticity of documents, again, you can take the help of an advocate to verify.

Which documents must be compulsory registered?

The following documents are required to be registered compulsorily under the Indian Registration Act, 1908:

  • Every time the immovable property is sold/purchased, the agreement needs to be registered.

  • Instrument of gift of immovable property;

  • Other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in future or in present, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards to or in immovable property.

  • Non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of creation, declaration, assignment, limitation or extinction of any such right, title or interest;
  • Lease of immovable property from year to year or for any term exceeding one year or reserving a yearly rent. But the State Government may publish an order in official gazette exempting any district or a part of a district or a lease that does not exceed the term of five years and the annual rent of which does not exceed Rs. 50/- .

  • Non-testamentary instruments transferring or assigning any decree or order of a court or any award when such decree or order or award purports or operates to create, declare assign, limit or extinguish, whether in future or in present, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards to or in immovable property.

  • Authorities to adopt a son that is not conferred by a will.

How is floor space measured?

Commercial premises throughout India are measured on three different bases as follows : Carpet Area
This is a total internal area of a premises measured from the internal walls. This would broadly equate to a standard BOMA net lettable area calculation.

Built Up Area
This is the total area of the premises measured from the external perimeter wall surfaces and incorporates an allocation of common areas on the same floor excluding lift, core and fire stairs.

Super Built Up
This incorporates built up area but also includes a proportional allocation of all common areas including stairs, lift cores, ground floor lobby, and caretakers office/flat etc. throughout the entire building and therefore usually represents an increase of 35% to 40%(as in Pune, Maharashtra) over and above carpet area.

The convention is for all premises to be leased relative to their Built up area. However, as values have risen, some developers are now equating lettable area in Super Built up terms to reduce the effective rate per ft2. As such, prospective tenants need to carefully verify which measurement standard is being utilized.

How can knowing the Carpet Area, Built-Up Area & Super Built-Up Area of a flat help me in purchasing a flat?

This break up is extremely essential as builders can place anywhere from 65% to 85% per cent of the super built area as carpet area. That means, if the price is quoted as 1,000 sq ft super built up area, the carpet area could be anywhere from just 650 sq ft to 850 sq ft. If this break up is not mentioned in the agreement, demand that the vendor/ builder mention it in the sale deed.

What exactly do we mean by a Free Hold flat? What are the advantages and disadvantages, if any?

A freehold property (plot or a flat) is one where there is a whole and sole owner(s), ownership is full and unconditional (within the provisions of the laws of the land) and there is no lessor / lessee involved.

What is meant by valuation of property?

The valuation process evaluates the market value of the property. Demand and supply forces operating in the market, as well as other factors like type of property, quality of construction, its location, the local infrastructure available, maintenance, are all taken into consideration before the market value is decided.

Who is the appropriate authority for knowing the market value of the property?

The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property.

How often does the state government issue a ready reckoner indicating market value of properties?

A ready reckoner is usually published on the 1st day of January every year or at the end of a financial/budget year.

What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement?

Market value of the property as ascertained by the stamp duty authorities on the basis of a ''Ready Reckoner'' which gives the per sq. mtr. value of each village, zone and sub-zone . The ready reckoner is normally published on 1st January of every year. The Stamp Duty is payable on the agreement value of the property or the market value which ever is higher.

Usually different rates for stamp duty are applicable for residential and non-residential property. In Maharashtra, the rate of stamp duty is 5%-6% for both residential and commercial property. However, for residential property there is a slab wise concession.

How much is the Registration Fees on sale of immovable property?

The registration fee in case of sale of immovable property is 1% (in Maharashtra) of the market value or Rs 30,000, whichever is lower. There could be some additional charges for scanning of documents were the office of the Sub Registrar has been computerized.

Do I have to go personally for the registration?

It is advisable to go personally but in case it is not possible, a power of attorney can be issued to some other person. This Power of Attorney should mention all the relevant clauses and must be registered before the Sub Registrar.

Will someone escort us for the registration?

Yes, the POA holder of the developer is present at the member escorts our customers for registration.

When and where should a document be registered?

Every document which is required to be registered under the Registration Act, except a Will, should be presented at the office of the Sub Registrar of Assurances for the registration within the prescribed time of four months from the date of its execution. A document is registered with a sub-registrar appointed by the State Government, under the Indian Registration Act, 1908. It is advisable to register documents after the booking amount.

What are consequences of non-registration of a document?

An instrument, which is not registered, is inadmissible as evidence.


Who is a Non Resident Indian (NRI)?

NRI means a person who is a citizen of India and has not been residing in India for more than 182 days during preceding financial year, or has gone out of India for the purpose of employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration.

Who is a PIO?

A person of Indian origin means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who has:

  • Held an Indian Passport at any time, or
  • Who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955

Whether NRI/PIO can purchase immovable property in India?

Yes, NRIs/PIOs can acquire immoveable property in India other than agricultural land/farm house/plantation property i.e. residential and commercial property.

How can payments be made?

Payments can be made in Indian Rupees from funds held in non-resident accounts maintained by the NRI/PIO by any of these methods:

  • Cheque

  • Draft

  • Pay Order

  • Banker's Cheque

  • Wire Transfer


Can NRIs/PIOs acquire or dispose residential property by way of gift?

Yes, the Reserve Bank has granted general permission to NRIs/PIOs to acquire or dispose off commercial or residential properties by way of gift from or to a person resident in India or NRI or PIO. However, agricultural land / plantation property / farm house in India cannot be acquired by way of gift.

Further, NRI / PIO can gift an agricultural land / a plantation property / a farm house in India only to a person resident in India who is a citizen of India

Can NRIs/PIOs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?

The Reserve Bank has granted general permission to certain financial institutions and authorized dealers for providing housing finance to NRIs/PIOs for acquisition of a house/flat subject to certain conditions. The criteria regarding quantum of loan, margin money and period of repayment will be at par with those applicable to resident Indians.

What details do NRIs/PIOs have to furnish and why?

Documents with the following details need to be furnished:

  • Nationality

  • Whether NRI or PIO (Person of Indian Origin)

  • Residential status

  • Passport details

  • Complete postal & permanent address (local or overseas, as applicable)

  • Name, address & account no. of customer's bank

  • These details need to be produced because this is a directive by the Government of India to all builders as a mandatory requirement. Failure to furnish the details called for is an offence punishable under the Foreign Exchange Management Act, 2000.

Does Peninsula Land Limited help customers with home loans?

Yes, definitely. Our projects are pre-approved by leading HFIs/Banks. We can help you acquire necessary approvals for your home loan from these HFIs and co-ordinate with them (as developers) to provide all necessary documents.

What is Saleable Area?

It is the sum of the Built-Up Area (Carpet Area + Wall Area) and the Common Area.

How much is the loading from Carpet Area to Built-up Area for Peninsula Land Limited?

The loading average is approximately 25%

What is the difference between GPA and POA (specific)?

General Power of Attorney (GPA) is an authorization given by the customer to a person if he is, owing to his professional commitments, unable to personally attend to the purchase, negotiations, registration and completion of other formalities pertaining to the apartment that he has bought. He will appoint and constitute one person known to him as agent and attorney in his name. And on his behalf, this one person will do any of the following acts deeds and things; this is given in general to do all the activities on his behalf. Power of attorney given to a person only for a specific purpose, for example, possession or registration purposes is called Specific Power of Attorney.

What is the difference between Agreement to Sell and Sale Deed?

Agreement to sell is a legal document which is executed between the builder and the customer, after the customer has paid 20% of the agreement value of the apartment. This document will have the terms and conditions of the seller and the buyer after the purchase of the property. This is a basic document on which bank or any financial institution will lend money to the customer. But this is not considered as the final document when it comes to the title of the property. Sale deed is the final and very important document which authenticates that the title of the property is conveyed to the buyer.

What is e-stamping/Franking/Notarising?

Any legal document which is not executed on a stamp paper has to be registered with the Government by paying the necessary judicial charges. This is called e-stamping/franking. Though printed on the stamp paper, some documents need to be authenticated by a legal person or an advocate who is called a notary and the process is called notarizing. Documents such Power of Attorney, Affidavit, etc. need to be notarized.

How is the Stamp Duty payable on purchase / sale of any Immovable Property determined?

Stamp Duty is payable on ‘Government Market Value’ of property or the consideration agreed to be paid for purchase of the same, whichever is higher. In areas within the limits of the Municipal Corporation, the rate of Stamp Duty payable is 6% whereas for areas outside the Corporation Limits, the rate is 5%.

What is the payment schedule for purchase of a residential flat / commercial premises in any of the Peninsula Land Limited projects?

If the construction of the project in which the flat / commercial premises is situated is in progress, the agreed purchase price is to be paid to the promoter in instalments according to the progress of the construction of the building in which the flat / commercial premises is situated.

When does the unit agreed to be purchased becomes his / her property?

A duly registered Agreement for Sale coupled with possession effectively completes the de-facto title of such a purchaser to the unit agreed to be purchased by him / her. However, in case of a co-operative housing society being formed by all the purchasers in the project, the land and all the buildings thereon are conveyed to the co-operative housing society. The purchaser of every unit in the project will be admitted as a member of the society and share certificate of five shares will be allotted to each purchaser. In the event a Condominium of Apartment Owners of all the units in a project is to be formed, a Deed of Apartment will be executed in favour of the purchasers of each unit, thereby conveying the unit together with a pro-rata undivided share in the land covered by the project and in the common areas and facilities thereof.

Which law governs the sale of units by a promoter to the purchaser thereof?

All transactions are governed by the provisions of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963. Neither the promoter nor the purchaser can contract out of the said Act.

What is the definition of 'carpet area' of a flat?

'Carpet area' is the entire area measured from wall-to-wall excluding the thickness of all walls.

What is the definition of 'carpet area' of the terraces?

'Carpet area' of a terrace is the entire area thereof measured from wall-to-wall excluding the thickness of all walls.

What is the definition of 'saleable built-up area'?

The saleable built-up area of any unit is the actual area including the thickness of the interior / exterior walls, the area of any balconies or sit-outs at eye-level and adjoining terraces and a certain percentage of the aggregate area of the common areas of the building in which such a unit is situated.

What is Capital Gain?

Capital Gain will accrue from the date of Sale Deed or possession or whichever is earlier and if the property is sold within 3 years of the above date, the same will be treated as Short Term Capital Gain if this period is more than 3 years from the above, the same will be treated as Long Term Capital Gain.


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