Easy Tips To NRIs For Home Loans

Home is one of the basic needs of anyone. Since the end of nomadic life, stable life is the want of all. Like them, many Indians pass the territory and fly away to other nations of their choice. Many of them make comeback, but at that time they don’t have their own nest to live in. It does not mean that they cannot have their hometown. With little investment and following certain guidelines, it will be theirs.   

Realty sector offers NRI facility of home loan

Realty sector is hungry for bringing bullish trend in. Real estate agents are ready with their plans to cater variant services of NRIs property management and investment. Indian government has already made up its mind to shake hands with the agents of this sector but only if they do betterment in housing sector. It has introduced few home loans provisions. For sure, leniency will be there.

Home Loan

Before moving ahead to know how to get home loan, let’s understand what home loan is. When financial institutions or individuals or group of individuals provide financial assistance for purchasing a property or land, either commercial or residential, it is termed as ‘home loan’. 

Purposes for rendering home loan:

a.      For purchasing new or old home or apartment or flat

b.      For purchasing a plot

c.       For constructing the already owned property

d.      For revamping the property

e.      For repair & extension of the house

How Easy Is To Get Home Loan!

The financial institutions, like banks, ensure financial assistance on the basis of the mentioned below conditions:

1. Home loan is approved for authorized constructions only, whether it is old or new. As authentication, an NRI applicant has to produce a photocopy of approved map or plan. Along, an affidavit is also needed stating that the construction is under sanctioned loan and plan. This forms legal services for NRIs.
   
2. If the plot is to be purchased, the NRI applicant has to declare specifically the period or date of complete construction. The copy of duly approved plan of home is to be produced before the due date of loan disbursement.
   
3.  As per banks’ guidelines, NRI investment in property construction on self-owned land needs its valuation. Thereafter, home loan will be approved. The team of bank officials will investigate and estimate its valuation. Loan disbursement will go through various phases. After completion of certain phases of construction, disbursement is to be done in accordance of clauses.
   
4. If the migrant applicant wants home loan for revamping/ repairing/ extension of the old home, the bank officials will checkout how much capacity or potential the borrower has for repayment. The borrower has to deposit the copy of his/her income tax returns or income proof.
   

How NRIs Are To Pay EMIs of Home Loan?

1.       Through their foreign bank account that are in regular channelization.

2.       Through post-dated cheques or using Electronic Clearance Service (ECS) that are to be of NRE/NRO/ FCNR bank account.

3.       Through rental income

4.       Any of his relative’s bank account who is the local of the country.

Benefits in Tax Payment

Section 80 C dictates that home loan will be deducted from the income through property. Its extension limit is up to Rs. 1.5 lakh per annum. Alongside, investment in LIC, provident funds and tuition fee etc. are also permissible.