Housing Loans

Can Fin Homes Ltd. (CFHL)

Can Fin Homes Ltd. (CFHL) is a Housing Finance Company sponsored by Canara Bank incorporated on October 29, 1987 under the Companies Act, 1956, with the main objective of financing construction/purchase/renovation/extension/upgradation of homes. The Company has a housing loan scheme for Non Resident Indians also.

Housing Loan Scheme for NRIs

If you are a Non-Resident Indian, we are here to fulfill your dream of owning a home in your motherland.

CFHL lends to Non-Resident Indians for construction or purchase of house/flat/apartment in India or to carry on repair/extension/renovation of existing houses in India through any of its 33 branches spread all over the country.

Who is a Non Resident Indian?

A Non-Resident Indian is an Indian citizen, staying abroad, for employment/business or vocation or stays abroad under circumstances indicating retention for an uncertain period of stay abroad. (Persons posted in U N Organizations, World Bank, IMF, WHO etc., Officials of State/Central Government, Public Sector Undertakings deputed abroad are also treated as Non-Residents)

Quantum of Loan

  • CFHL grants loans to individuals upto Rs.25 lakhs for purchase/construction
  • For Renovation/Repairs/Upgradation, maximum loan of Rs. 60,000/-
  • For extension maximum loan of Rs.5,00,000/-

The quantum of loan is determined by what is called "Repaying Capacity", which is arrived by assessing various factors like age, income, qualification, number of dependents, spouse's income, savings history, assets, liability, nature of occupation and any other sources of income.

The maximum loan permissible is 80% of the total project cost (including cost of land, i.e. registered cost including stamp duty and registration charges) subject to maximum value of the building portion in case of purchase * of ready built house and of the cost of purchase * of ready built house and of the cost of construction in case of construction.

* CFHL does not lend exclusively for purchase of land.

Getting the Loan

It's simple! All you have to do is to collect the application from any of our branches.

After identifying the property, the application filled up in all respects has to be submitted at the branch along with necessary enclosures, processing and administrative fees. The staff of CFHL will help you with the procedures and if all the norms have been complied with, sanction will be communicated by a sanction letter from the branch.

Security for the Loan

Security for the loan is the first mortagage of the property to be financed, normally by way of deposit of title deeds of the property with CFHL. Additionally two grarantors acceptable to CFHL residing in India is to be provided.

Depending upon the case, CFHL may also insist for additional/collateral securities.

What are the additional documents required to be submitted along with an application?

1. PROPERTY DOCUMENTS :

  • Original Title Deeds tracing the title of the title of the property for a minimum period of last 13 years.
  • Encumbrance Certificate for last 13 years.
  • Agreement of Sale/Construction if any.
  • Approved Plan/License
  • ULC clearance/concession order etc.

2. PERSONAL DOCUMENTS:

This includes the following:

  • Employment Contract (if the contract is in any language other than English, the same has to be translated into English and attested by Employer/Indian Embassy).
  • Certified copies of the latest salary slips for the past six months.
  • Receipts for having invested the margin money & Foreign Inward Remittance Certificate (FIRC) for the same from the bank.
  • Latest permit.
  • Visa stamped on the Passport.
  • Three years NRW Bank account pass sheets.
  • Bio-Data, covering educational qualifications, age, job experience, nature of profession/ business etc. with necessary proof.
  • Registered Power of Attorney if necessary, in favour of Local Representative in India.

Fees to be paid

Processing and Administrative fee of 2% of the loan applied for is payable form NRE source when the application form is submitted to CFHL

when is the disbursement of loan made?

Disbursement of loan sanctioned will take place after technical approval and completion of legal documentation, Before availing the loan, the applicant will have to invest his margin money i.e., total cost of the project less amount of loan sanctioned by CFHL.

In case of outright purchase of house / flat, the loan amount will be paid to the vendor in one lumpsum at the time of registration of sale / conveyance deed. For houses/flats under construction, loan will be disbursed in stages, depending on the progress in construction.

You will have a period of 3 months in case of ready built house / flat and upto 14 months in case of construction to fully avail the loan beyond which the loan sanctioned to you will stand cancelled.

Repayment Period

The loan granted is repayable within a maximum period of 15 years. However, depending on the repayment capacity, age etc. and to suit the convenience of the applicants, the term will be decided by CFHL ranging between 7 to 15 years, which will not normally exceed beyond your age of retirement.

Quantum and Mode of Repayment

The rate of interest, period and the quantum of loan determines the size of the EMI. CFHL strives its best to keep the interest rates stable as long as possible (and is governed by the guidelines of National Housing Bank in this regard). However, the Company reserves its right to vary the interest rate prospectively at its discretion depending on money market conditions or as imposed by the Government or authority from time to time.

The enclosed table gives you the present interest rates and the EMI payable for every Rs.10,000/- for various periods.

Interest is calculated on annual rests. The EMI's are apportioned to Principal and Interest at the end of CFHL's financial year.

Prepayment

Yes, CFHL allows prepayment of loan ahead of schedule as per the terms in force from time to time. Part prepayment of loan is also permitted subject to the rules prevailing in the Company from time to time.

Notwithstanding anything contained above, CFHL reserves its right to decide the period of repayment, quantum of loan, as well as to reject the loan without assigning any reasons whatsoever.

Special Conditions

All remittances towards Housing Loans i.e., processing fees, administrative fees, Pre EMI (interest), EMI, margin money, interest tax etc. should be made through normal banking channels from abroad or from the Non-Resident External account (NRE) or Foreign Currency Non-Resident account (FCNR) or Non Resident account (NRO) only. There is also an option of repaying the housing loan out of rental income of the property financed subject to satisfying certain terms and conditions.

The remittance from abroad is to be supported by Foreign Inward Remittance Certificate from the authorized dealer of Foreign Exchange. Remittance by way of debits to NRE/NRO account is to be supported by Bankers Certificate.

Housing Loans to NRIs are extended subject to RBI guidelines in force from time to time.

CFHL doesn't have agents for Housing Loans. Agents are authorized for the mobilization of Company's deposits only.

Investment Opportunities

CFHL also accepts deposits from NRIs on non repatriable basis at attractive rates of interest.

CAN FIN HOMES LTD

Regd. Office: 32, 'Shanti Kutir', 2nd Floor,
Race Course Road, Bangalore 560 001.
Tel: 2267229, 2281209 Fax: 080-2281208.