BUYERS GUIDE

It is understood that the applicant has applied for the allotment of a residential apartment with full knowledge of the laws, notifications and rules applicable to acquiring real estate in India, in general, and to group housing projects in particular. It is further understood that the applicant has complete knowledge of, and is fully satisfied with, the interest held by the land owners of Central Park II in the land and the associated title of the land on which the apartments will be/are being constructed.

The license for the Development of Group Housing and sanctioning of building plans for the commencement of construction has already been obtained from the Director of Town & Country planning Haryana/HUDA. The layout plans and building plans, approximate super built-up area of the apartments, specifications of the buildings/ building complexes and the apartment(s) are tentative and are subject to variation.

The allottee shall be liable to pay the company, on demand, all rates, taxes, levies, deposits (including security deposits and assessments pertaining to the apartment and common areas proportionately); effective from the date of execution of the apartment and common buyers agreement.

Application in the prescribed form as contained in the Brochure is subject to the information and the terms and conditions stated here as well as in others parts of the Brochure including all the documents/inserts, which are contained in, and form part of, the Brochure.

All correspondences will be made with applicants at the address for correspondence as per records initially indicated in their Application Form, unless changed. Any change of address will have to be notified in writing to the company at its office, after which acknowledgement must be obtained for such change. In the case of joint allottees, all communication shall be sent by the company to the allottee whose name appears first on the Application Form, and shall, for all purposes, be considered as served on all allottees. Dispute(s), if any, shall be subject to the jurisdiction whereby Central Park II and Sweta Estates Private Limited reserve the right to relax conditions and to reject any application without assigning any reason whatsoever.

Home Loan

1. When can I apply for a home loan?

You can apply anytime after you have decided to acquire or construct a property, even if the property has not been selected or the construction has not commenced. Besides, you can also avail of the loan facility even if you want to renovate or extend your home.

2. How do I make an application?

You need to approach a Housing Finance Company with your most recent salary slips along with TDS forms (16) for the last two financial years. This applies to both, you and your applicant, if any. The loan officer, after going through the details of the documents, will tell you the loan amount you are eligible for and the terms of the same. You need to submit the application form along with the necessary documents. On receipt of the application form, along with other required documents, the Housing Finance Corporation may approve the loan. You are advised to visit more than one financial institution for better terms/a larger loan amount, if you shop for the best deal.

3. How long will it take me to get an application processed and the loan sanctioned?

It may take up to fifteen days for processing oneâ€â„¢s application if the documents are in order. Under normal circumstances, it may take another week for the banking company/financial institution to inspect the property papers and make the disbursement.

4. What is the maximum amount which I can borrow?

Home loans are generally provided for in the range of approximately 85-90% of the asset value. The loan amount varies from institution to institution and is generally approved on the basis of the applicant's financial credentials and repayment capacity.

5. How is my loan eligibility determined?

The primary concern of the HFC in determining your loan eligibility is your repayment capacity. You repayment capacity is determined by taking into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history.

6. What are some of the repayment period options available to me?

Repayment periods generally range from 5 to 20 years.

7. What are Collateral Securities?

Housing Finance Companies usually demand additional securities (to traditional security); these are called collateral securities. In essence, collateral security is extra security provided by a borrower as evidence of his/her intention to repay a loan. Collateral securities may take the form of guarantees (from one or two persons), the assignment of life insurance policies, the deposit of shares, or units of other securities.
These additional securities provide recourse if a loan is not paid back, so that the lender has an intermediate solution before resorting to the mortgage itself.

8. How is the interest calculated on my loan?

Most Housing Finance Companies follow the yearly reducing-balance method which accounts for your principal repayments only at the end of the financial year. Hence, you pay interest on the principal that you have already paid back to the Housing Finance Company during the year. In contrast, banks and even some Housing Finance Companies follow the daily or monthly reducing-balance method, which results in a lower interest burden.

9. What is the basis of interest rate calculation?
As mentioned in faq 8., the interest on home loans in India is usually calculated either on a monthly or yearly reducing balance.

Monthly Reducing Balance: In this system, the principal on which you pay interest reduces every month as you pay your Equated Monthly Installments (EMI).

Annually Reducing Balance: In this system, the principal is reduced at the end of the financial year. Thus, you continue to pay interest on a certain portion of the principal that you have already paid back to the lender during the year. This means that the EMIs for the annually reducing balance are effectively higher than for the monthly reducing system of calculating interest.

Furthermore, there are two kinds of interest rates for housing finance in India- fixed and floating rates of interest.

Fixed Rate of Interest: With a fixed rate, the interest rate remains constant for the entire duration of the loan, and generally varies from approximately 12.5% to 16%. Repayment is in the form of Equated Monthly Installments (EMIs). Factors that determine the interest rate include the tenure of the loan and the Housing Finance Companyâ€â„¢s evaluation of your likeliness to default. In the case of a longer tenure, you will pay more in interest, even though your monthly payments will be lower.

Floating Rate of Interest: As for floating or variable rates of interest, the interest rate depends of the type of home loan and its tenure. Since the floating rate fluctuates with the market lending rate, you will benefit from drops in the market interest rate.

10. What is the fixed rate of interest?
Some Housing Finance Companies offer a fixed rate of interest, which means that the interest rates remain constant through the entire duration of the loan. As a result, the borrower does not benefit/lose from interest rate declines/hikes in the market.

11. What is a floating rate of interest?
This is a variable rate of interest that fluctuates according to the marketing lending rate.

12. What are the fees and charges payable in the context of home loans? When are they due?
Home loans are usually accompanied by the following extra costs:

Interest Tax: This is the tax imposed on the interest paid (and not the principal) on a home loan.. This tax may either be included in the interest rate of the loan itself, or it may be charged separately as interest tax.
Processing Charge: This fee is payable to the lender up on application for a loan. It is either a fixed amount (not directly linked to the loan) or may also be a percentage of the total loan amount.
Pending Penalties: When a loan is paid back before the end of its agreed duration, some banks and companies charge a penalty. This usually varies between 1% and 2% of the total amount being pre-paid.
Commitment Fees: Some institutions levy a commitment fee after a loan has been processed and sanctioned in case it is not availed of within a stipulated period of time. Miscellaneous costs: Lenders often levy documentation and/or consultant charges.

13. What securities do I have to provide in exchange for the loan I wish to take?
A mortgage is the pledging of a property to a lender as a security for a mortgage loan. Hence, security for the home loan is normally provided through the deposit of title deeds. The title should be clear and marketable. Some Housing Finance Companies may also require collateral security such as the assignment of life insurance policies, the pledge of shares, National Savings Certificates (NSCs), units of mutual funds, bank deposits and/or other investments.

14. What documents are required at the time of application?
The common documents that the financiers require at the pre-approval stage are:

Proof of Age
Copy of Bank A/C statements for the last 6 months
Copy of latest credit card statement
Passport sized photograph
Signature verification from bank authorities
Income Tax returns for the last two years

If you are salaried, you need to produce:

Salary and TDS certificate
Latest pay slip
Letter from employer
Copy of PAN Card

If you are self-employed you required

Your business track record
Copy of audited financial statements for the last 2 years.

At the disbursal stage (for property already located), you need to submit:

Allotment letters
Photocopies of title deeds
Agreement to sell
Non-Encumbrance certificate

15. What are the tax benefits available to me?
Tax benefits available are:

Rebate under Sec 80C of IT Act for repayment of principal amount
Deduction under Sec 24 of IT Act for interest payment on housing loans subject to an upper limit as may be decided by the government from time to time.

16. What are EMIs?
EMI or Equated Monthly Installments refers to the fixed sum of money that you will be paying to the housing finance company every month. The EMI comprise both interest and principal repayment. The size of the EMI depends on the quantum of loan, interest rate applicable and the term of the loan.

17. Can I repay my loan ahead of schedule?
Yes, you can pay you loan ahead of schedule. However, it must be noted that housing finance companies may charge a fee for early redemption of loan.