Owning a home is perhaps the biggest dream of the working class man. People toil for years to save enough money to be able to afford a down-payment into a place they can call their home. Some even leave the country to improve their prospects of owning a home, buy finding means to earn in countries with stronger currencies. Such individuals are called NRIs. Due to high conversion rates in foreign currencies, NRIs can save more and have a secure place to call their home when they return to their motherland. There is a huge scope for NRI investment in real estate in India. NRIs wishing to invest in a home in India must be aware of factors that make them eligible for a loan. Here is everything you need to know about procuring NRI home loans.
Type of NRI loans
If you are planning to invest in a property, then as an NRI you might want to consider applying for home loans. It majorly includes:
• Upgrading an existing property
• Property under construction
• Construction of property on the land already owned
• Ready to move in property
Loan Amount Can Be Availed
NRI loan amount is decided on a number of factors. It majorly includes income of the NRI, which should be consistent and steady. Besides, Gross Monthly Income is also taken into consideration. This further helps in deciding on the Monthly Equated Income or EMI. As the name suggests, an NRI has to pay on a monthly basis with certain amount as interest. Get in touch with banks and financial institutions for every agency tends to have different eligibility criteria.
Home Loan Tenure and Rate of Interest
It is vital to know that an NRI can avail home loan for a limited period of time. Say for example, 5 – 15 years. The extension for the nri property investment in india is dependent on the bank’s decision. The bank exercises its discretion regarding loan extension. However, for whatever reasons, if the bank does not comply, the loan must be repaid in the pre-decided, stipulated period. It is vital to know that the rate of interests on NRI home loan is high. So, seek expert help in case of any queries.
Documents Needed
To facilitate easy and hassle-free loan disbursals, NRIs must provide the following documents, as requested by the bank.
1. Passport Copies
2. Employment contract
3. Salary Slips
4. Valid work visa and permit
5. Bank statements in NRO and NRE accounts
These are some factors every NRI planning to invest in Indian real estate with the help of home loan should be aware of. Go through the nri corner on the bank’s or realtor’s website or for more details.