Understand the Workings of an NRI Home Loan
It’s the dream of every Indian living abroad to own a home back in the motherland. Yes, Indians though they have migrated to greener pastures, still have an unbreakable bond with their home country. This is why most NRIs avail home loans in India.
Additionally, the real estate market of India is lucrative for NRIs as it’s easier to pay for a home in India in rupees when your earnings are in a stronger currency.
NRIs can Avail Home Loans in India – But certain conditions apply
However, home buying is a tedious process, especially if you’re living oceans away from the property. And getting a home loan for an NRI is different from Indian residents. That’s why it’s essential to have a good grasp of the online home loan process for NRIs. This will help you simplify the entire application process from start to end.
Let’s get started!
Qualification Criteria for NRIs
According to the FEMA (Foreign Exchange Management Act), an Indian who resides outside of India for more than 182 days in the previous fiscal year for employment or business or vacation purposes is an NRI.
Now, that you have identified yourself as an NRI, the next step is to decide on the best home loans.
Check for Foreign branches of Indian Banks
Some Indian banks have a local branch overseas. Check out if the bank you have chosen has a branch in your country of residence. If yes, you can approach this bank to handle your loan application without having to visit India. This branch can handle your entire loan application right from eligibility check to disbursal of your loan amount. They do this by coordinating with your local bank in India. Check antworksmoney home loan services
The Difference in Loan Tenure
The home loan tenure for NRIs is generally only for fifteen years. This is because banks consider NRIs to have higher repayment capacity when compared to the average Indian. Hence, you can’t apply for a home loan for a longer duration if you are an NRI.
Required Documentation
Copies of your current passport, salary slips, statements of Non-resident Ordinary Account or Non-Resident External Account, your bank passbook for the last six months, work permit, job contract, work experience certificate. You have to submit your proof of income statement if you aren’t salaried personnel.
Apart from these documents that you provide for getting a home loan, the deed of the sale or construction of the house, land tax receipt, possession certificate and Non-encumbrance of the property for thirteen years or more.
If a third-party will be acting in your favor, then you have to provide a notarized power of attorney.
The Amount you can avail
Generally, banks provide up to 80% of the cost of the property. For instance, if your property costs 1 Crore, you can avail a home loan for 80 to 85 lakhs.
Interest Rates
The interest rate on NRI home loans is generally similar to that of resident Indians.
Repayment of the Loan
You can repay the loan amount only through remittances from abroad by making use of regular banking channels or through your NRO, NRE, FCNR, NRNR, NRSR accounts.
Make use of NRI Home Loans to Buy your Dream Property in your Homeland
Being aware of the procedure to apply for an NRI home loan reduces your hassles and helps to simplify the entire process from start to finish. Also, you can approach reputed home loan brokers on www.antworksmoney.com to land you the best deal.
