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.