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.