Non-Resident Indian can avail housing finance in India

There is no better way to stay in touch with the roots of childhood then owning your “home sweet home” in motherland. No matter which part of the world you’re located, but a home in your motherland is what everyone aspires for. With banks and finance companies catering clients with NRI loans, today managing finance for your dream home in India is as easy as the click of the button on your smartphone, tablets or laptops.

Before taking a loan there are certain things you should consider. No doubt, factors like location, property type, funding will be required to be taken into consideration. With ample research, one can easily settle on the location and property depending on your choice and comfort.  Funding could be done through other options as well such as traditional finances, savings income etc. But due to the rising inflation costs, family responsibilities, or other important duties in life, it becomes difficult to bridge the high costs to own a home. Therefore, NRI loans offered by banks and finance companies have come up as a perfect rescue to millions of non-resident Indians who dream to own their house back here in India.

Some of the important parameters that have to be considered while availing NRI loans are as follows:

Rate of Interest:

All loans are charged with certain interest rates which could be either fixed or floating basis. It differs from bank-to-bank or company-to-company. Normally banks are offering loans in the range of around 9% to 12% with a processing fee of 0.5%. Over the long run, these interest rates prove quite affordable with better repayment options. You can visit online website and check for the best interest rate deals offered by bank or finance companies. The repayment tenure will range from 10 to 15 years. In certain professional cases it may go up to 20 years.

Purpose of Loan:

NRI citizens can now avail NRI loans for the purchase of property ready for possession or under construction, construction of a property on an owned plot or for home improvement or extension, purchase of plot and home furnishings & consumer durables to the existing property. Buying of plot also comes under home loan application except agricultural lands. You can only opt for one property at a time.

Loan amount:

Normally, when an individual apply for home loan, banks or finance companies will offer a loan amount that covers a percentage of the home costs. For standard home loan they will finance around 60 to 70 % of the house. With a home loan for NRI’s you can get at most 90% of the whole property. But it solely depends on the borrower’s gross monthly income.

Documentation:

Apart from relevant documents for applying home loan some additional important documents for NRI home loan would be: Copies of the passport, work permit and valid visa, contract of employment, salary certificate, work experience certificate and bank statements of NRE/NRO accounts. Your salary certificate has to be attested from the embassy if the salary is not credited to a bank. For those residing in the Middle East, a copy of the employment card is also required.

Payment Method:

Most financial companies and banks only accept repayment through NRI accounts. It makes it both easier for both the bank and account holder to manage the funds. Additionally, it also makes it convenient for the account holder to access and transfer funds easily from foreign currency to the local currency.

Repayment:

Repayment capacity takes into consideration factors such as income, age, qualification, number dependents, spouse income, credit history, assets, liabilities, stability and continuity of occupation and savings history. The repayment of the EMI of these NRI loans can be paid through NRE or NRO accounts with remittance from abroad. It is done in Indian rupees only. The down payment should be done through normal banking channels or NRE or NRO account in India.

Internet has really made the time spin across compared to age-old process of visiting banks, filling up forms, getting copies attested and submitting them. With online service you can fill the application form, attach scanned copy of relevant documents and submit the same online for approvals. NRI individuals can access bank or finance companies website and visit any branch in foreign country to avail of home loan advisory services where they currently reside in.

Income Tax For NRIs

HDFC Home loans to NRI's, PIO's and OCI's for purchase of residential property in India. HDFC provide NRI Loan. Avail property search and home loan advisory services from HDFC.

The best housing finance for NRIs applicants

Every Indian who stays abroad aspires to own a home in his or her homeland. A couple of years ago, buying home was a tedious process especially for the ones living miles away from their motherland. Thanks to the effort of leading government and private sector banks & finance companies because of which they can now avail NRI home loans for purchase of flat, row house and bungalow from developers. NRIs can also avail home loan for home improvement or extension, purchase of plot and home furnishing and consumer durables.

People who wish to buy home; opting for a home loan is one of the meticulous ways of securing a home. The procedure to avail NRI home loan remains almost same across all banks and finance companies.

The major concern that runs across in the consumers mind is the interest rate applicable and the processing fee charge for availing loan. In India, there are leading government and private sector banks and finance companies that offer NRI home loans with affordable interest rates of 9.40 to 9.90 with a mere processing fee of a just 1.25 or 11,500/-whichever is the maximum. You can qualify for a loan amount of around minimum Rs 5 lakhs to 10 crores. The repayment tenure will range from 10 to 15 years. In certain professional cases it may go up to 20 years.

Check if the Indian bank you availing a loan from has a foreign branch in your current country of residence.  It will help you to apply for the loan and avail the same without having to come to India. Some banks have branches in foreign countries.  They will help you co-ordinate for the entire loan process in India from approval, disbursement right upto the repayment procedure and collection of your property documents.

Internet has made the job very easy and quick for customers across the world. All you need is a computer and an internet connection at your house. Visit the relevant banks or finance company in foreign branch and upload a scanned copy of relevant documents. Banks or finance companies will go through the application and sent in the position of your loan approval in a couple of days. Non-Resident Indians are also eligible to avail tax benefits on NRI home loan interest for the portion of the EMI paid towards the repayment of home loans.

Banks usually offer upto 80% of the landed price of the property plus costs towards registration and stamp duty, if you can arrange remaining 20% money. It is advisable you should try and save enough money to contribute upto the remaining 20% before approaching the banks for applying loan.

Banks sanction the home loan only if they are convinced of your ability to repay the loan. You can apply for NRI home loan either individually or jointly. Proposed owners of the property have to be co-applicants who could be your immediate family member –spouse, parents or children. Check with the banks if there are any hidden charges, provision to reduce EMI with slashed interest rates, provision to add expected rent accruals.

Repayment capacity takes into consideration factors such as income, age, qualification, number dependents, spouse income, credit history, assets, liabilities, stability and continuity of occupation and savings history.  The repayment of the EMI of these loans can be paid through NRE or NRO accounts with remittance from abroad. It is done in Indian rupees only. The down payment should be done through normal banking channels or NRE or NRO account in India.