I am working with a pharmaceutical company in Mumbai and currently live in a rented apartment. I have finally shortlisted a flat in Malad for which I want to take a home loan. I checked with one of the banks. It agreed to give me a loan of only 60% of the value of the property, when only four months back I was told I could get up to 80%.

Loan eligibility is essentially determined on the basis of the repayment capacity of the borrower.

A number of factors are taken into account when assessing the repayment capacity, such as income, age, qualifications, work experience, number of dependents, job profile, spouse’s income, assets, liabilities, continuity of occupation, savings history, etc.

At HDFC, we provide up to 85% of the cost of the property depending on the repayment capacity.

I am a person of Indian origin (PIO) working for an MNC in London. I plan to buy a property in India. I will be taking a home loan for it. I wish to understand whether PIOs are required to seek permission from the Reserve Bank of India (RBI) to acquire immovable property in India for residential use.

RBI has granted general permission to foreign citizens of Indian origin, whether residents of India or abroad, to purchase immovable property other than agricultural land/farm house/plantation property, in India.

You would, therefore, not be required to obtain separate permission from RBI or file any declaration.

With regard to the home loan, several Indian banks or housing finance institutions such as HDFC provide home loan and property advisory services to help customers such as you to find their dream home in India.

Renu Sud Karnad is joint managing director, HDFC.

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