Five things about NRI Home Loans that you should know
by Litty Jose Finance AnalystOwning property in your native country
is like a dream for most NRIs. It’s like planting roots in your home country, a
place where you spent your childhood. It creates a tie with your country and
many NRIs aim to own property in their home country. One thing that keeps them
from buying property in India is the hassle of applying and getting an NRI home
loan. Applying for a loan for person who doesn’t live in India can be very
stressing, with a lot of formalities and documents to be submitted. But now
perhaps is the best time for an NRI to get a home loan as banks have eased up
on procedures involved in approved an NRI home loan.
With the real estate market being
in ripe state and the banks too lending a helping hand to NRIs, it’s now easier
than ever to get a home loan and finally purchase a property in their home
country. An NRI needs a special application for home loans as they do not
reside in the country. If you’re considering or are in the process of getting
an NRI home loan then here are a few crucial things that you need to know before
you apply.
1. An NRI is defined by the RBI as a person who
holds a valid passport but is immigrating to another country for an undecided
period of time, for employment purposes or to carry out a business. Only a
person who is employed or has a business outside India is eligible for an NRI home loan.
2. The amount that is sanctioned to you as a loan
will greatly depend on your educational qualifications and overall income.
Normally a loan is sanctioned for 80% to 85% but the amount sanctioned will be
decided on the basis of your monthly income.
3. The home
loan interest rate in India for NRI’s is normally higher than the
interest rate that is offered to residents. This is due to the increase in risk factors. Normally, the difference
ranges from 0.25 to 0.5%.
4. The documents required for an NRI home loan are largely similar to the ones required for any other loan. An NRI will additionally require his/her passport, Visa, work permit, employment proof etc.
5. All payments towards this loan need to be done in the Indian rupee and not the currency of the NRIs current residence.
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Created on Jan 19th 2018 01:09. Viewed 662 times.