Every individual dream of owning a house and so does NRIs or Non-Resident Indian. They are basically Indians who have been staying abroad for better prospects. When taking about NRI investment in real estate, if becomes important to know the home loan eligibility too. Having all the information on the same makes the whole process easy and hassle free.
Type of Loans NRIs Can Opt
If you are looking for property investment, then you might want to consider applying for home loans for these kinds of homes such as:
• Property under construction
• Ready to move in property
• Construction of property on the land already owned
• Upgrading an existing property
Home Loan Tenure and Rate of Interest
It is of paramount importance to know that an NRI can avail home loan for a restricted period of time only i.e. 5-15 years. The extension of the home loan for NRI property investment is completely dependent on the bank discretion. Other than this, you should also know that the rate of interest on NRI home loan is high.
Loan Amount Can Be Availed
The loan amount is decided based on some factors like the income of the NRI that should be steady. Gross monthly income is also taken into consideration for the same. This helps in deciding on the Equated Monthly Income (EMI). In this, the NRI has to pay on a monthly basis with certain interest charges. Certain banks and financial institutions also tend to have other criteria for NRI home loan.
What Are The Documents Needed
When it comes to applying for the NRI home loan, it is important to have all the required documents ready. Furthermore, the documentation for NRI is somewhat different than for Indians. Some of the vital document required include:
• Employment contract
• Passport copies
• Valid work visa and permit.
• Salary slips
• Bank statements if NRO and NRE accounts
Repayment of The Loan
It is wise to know that when you apply for a home loan as an NRI, the repayment of the loan amount should be done through Non-Resident Ordinary (NRO) or Non-Resident External (NRE) accounts. All the loan repayment should be done in Indian currency only.
These are some of the aspects an NRI need to keep in mind when planning to apply for home loans. Browse through NRI corner for more details.