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Home Loan: FAQs

How will OCHFL decide my home loan eligibility?

We assess the customers repayment capacity while deciding on the home loan eligibility. Repayment capacity is based on factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. And, of course, our main concern is to make sure that you can comfortably repay the loan amount. To get an indicative eligibility please click here .

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What are the different interest rate options you offer?

We offer the following loan options

  • Fixed Rate – The interest rates and hence EMI remains fixed over the tenure of the loan. The fixed rate loan is typically more expensive than the floating rate loan on a given date.

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How do I apply for the loan?

Visit one of our offices/call us leave a message for usclick here Alternatively, you can download the form click here. fill it up and visit one of our offices click here . with complete documentation.

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Can OCHFL assist me in selecting accommodation of my choice?

We can assist you in finding the property of your choice. Visit one of our offices/call us or leave a message for us click here .

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What Documents do you need for a loan approval?

Click here for List of Documents

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What is an EMI?

You repay the loan in Equated Monthly Instalments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement. EMI Calculator.

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What is pre-EMI interest?

Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.

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What is Tranche Based EMI repayment option?

To help customers save pre-EMI interest, we have introduced a special facility of Tranche Based EMI.

For under construction properties customers can choose the instalments they wish to pay, till the time the property is ready for possession. Anything paid over and above the interest by the customer goes towards Principal repayment. The customer benefits by starting EMI and hence repays the loan faster.

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Can I repay my loan ahead of schedule?

Yes, you can repay the loan ahead of schedule by making Lumpsum payments or choose ouraccelerated repayment scheme. There are NO charges for choosing an accelerated repayment scheme and for lumpsum payments under Adjustable Rate Home Loan.

Fixed Rate Home Loan [FRHL] Redemption charges of 2% of the amount being prepaid is payable if the amount being repaid is more than 25% of the opening balance.

In case of commercial refinance under both the FRHL and ARHL an early redemption charge of 2% is payable. You may be required to submit copies of your Bank Statements or any other documents that OCHFL deems necessary to verify the source of prepayment.

*Subject to terms and conditions

For further details please contact our Loan Counsellor.

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Do I get a tax benefit on the loan?

Yes. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Interest repayment of Rs. 1,50,000 p.a. can get you a tax saving up to about Rs. 50,490 p.a. Moreover, you can get added tax benefits under Sec 80 C on repayment of principal amount up to Rs. 1,00,000 p.a. that can further reduce your tax liability by about Rs. 33,660 p.a. Please meet a tax consultant for further details.

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What security will I have to provide?

The security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary.

Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to OCHFL of life insurance policies, the surrender value of which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to OCHFL.

Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation, which is likely to affect the title to the property adversely.

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Does the Agreement for Sale have to be registered?

In many states in India, the Agreement for Sale between the builder and purchaser is required by law to be registered. You are advised, in your own interest to lodge the Agreement for registration within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

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Are there any restrictions on transfer of immovable properties?

In terms of Chapter XX C of the Income Tax Act, 1961, the Central Government has the first option to purchase certain immovable properties exceeding certain value and as such transactions covered by this Chapter can be proceeded with only after complying with the requirements prescribed therein.

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Will OCHFL finance persons of Indian origin holding foreign passports?

As per current guidelines of the Reserve Bank of India persons of Indian origin holding foreign passports are eligible for loans with OCHFL.

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How is my loan reassessed if there is a change in status from Non-Resident Indian to Resident Indian?

The repayment capacity of the applicant(s) based on Resident status is reassessed and a revised repayment schedule worked out. The new rate of interest will be as per the currently applicable rate of Resident Indian loans (for that specific loan product). This revised rate of interest would be applicable on the outstanding balance being converted. A letter is given to the customer confirming the change of status.

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