HOME LOANS FOR NON-RESIDENT INDIANS
To attract more and more foreign exchange from Non-Resident Indians, the government of India is encouraging home loans to NRIs with liberal norms. Non-Resident Indians are to comply with the following formalities to avail the home loans:-
Eligibility
Any Indian who has been living abroan for employment, conducting business or pursing a vacation is eligible for a NRI Housing Loan. Personnel deputed abroad on short term or long term assignments with foreign governments or international agencies are also eligible to avail NRI Housing Loan.
Purpose
NRIs can avail home loans for purchase, construction, extension or renovation of a new house or flat. Home loan can be availed for purchase of a plot of land for residence use.
Loan Amount
Loan can be availed upto 85% of the total cost of the property subject to the minimum of Rs5.00 lacs and maximum of Rs100.00 lacs.
Tenure of Loan
Salaried persons : upto 15 years
Self Employed persons : upto 10 years
The tenure of loan is subject to retirement age or 60 years of age whichever is earlier.
Margin and Repayment
NRI should pay for the acquisition of property by funds received in India through normal banking channels by way of inward remittance from outside country.
While availing home loans, margin money should come from abroad by normal banking channels.
Repayment of EMIs should also come through inward remittances through normal banking channels. Repayment of EMIs can be opted in step up repayment facility which facilitates to pay lower EMIs in initial years and higher EMIs in later years when income of NRI borrower increases with the coming years.
Documents required to process the home loan application :-
Property and related documents:
- All receipts for payments made by individual towards purchasing the house.
- Copies of approved drawings of the property, including extensions.
- Copies of Agreement for Sale and sale deed.
- Document containing detailed cost estimates from the architect/engineer for the house.
- Allotment letter issued by the association of apartment owners.
Employment and related documents:
- Copy of the work permit.
- Copies of the Visa stamped on the passport.
- Copy of the existing/current employment contract.
- Latest wage slip/ salary certificate or statement.
- Copy of the Identity card issued by current employers.
At intervals govt. of India reviews the procedures for grant of home loans to NRIs and issues the requisite guidelines to encourage the NRIs for availing more and more home loans and invest in properties in India.
Tags: real estate