Although they might be living outside the country, but most of the NRIs hope and dream to have their own home in India, after all this is still their country. For this particular purpose most of the banks in India these days give a Loan option to the NRIs provided certain conditions are fulfilled.
Here we tell you a few things which you need to remember before applying for an NRI home loan.
Assets which are eligible for NRI loan – NRIs can get home loan for ready for possession property, those which are under construction and even those properties which are being altered. If you are planning to buy a plot that also will qualify for a home loan.
Conditions to be remembered – Banks which provide home loans allowed and advance of 80%-85% of the total value of the property. This amount is subject to the Gross Monthly Income of the individual. Maximum loan which is offered by any bank is usually 36- 40 times the Gross Monthly Income. A few banks also take into consideration the educational qualification and place of residence of the NRI.
Loan time period – As an NRI the loan period is usually half of what the residents of the India get. 5-15 years is the time period in which they have to repay the loan amount. Although the loan time period can be extended beyond five years, but it entirely depends on the bank.
Documents – The documents which are required for an NRI home loan are entirely different from that of the residents. Copies of the passport, valid visa, work permit, contract of employment salary slips, work certificate. Those who live in the Middle East are also required to refurbish their employment card. As far as the submission of document is concerned, you don’t need to come all the way to India to get the loan approved. Many banks have branches oversees and the documents can be submitted there.
Change of NRI status – Suppose there is a change in status from, NRI to resident, the loan will be redrawn accordingly. Even the interest rate is revised according to the income.
