If you are an NRI looking to avail of a home loan in India, we list a few things for you to keep in mind while applying:
1. Eligibility
Keep in mind the following three criteria for an NRI:
• Should be at least 18 years and maximum 60 years of age.
• Should have been employed abroad for at least two years, or should be serving a valid job contract abroad for a minimum period of two years.
• Should have an NRE/NRO account from which he needs to apply for a loan.
2. Documents
Documents like a copy of the passport and a copy of the works are required only for NRI loans. Property-related documents like original title deed for a minimum period of the last 13 years; agreement of sale/construction; approved plan/license or receipts for having the margin money from the NRE and/or NRO account in India will be required for applying for a loan.
3. Amount of Loan
The loan amount should not exceed 85% of the cost of the property. In the case of Indian residents, banks can lend up to 90% of the cost of property. The size of the loan depends upon the borrower’s repayment capacity. However, there is a maximum limit. For instance, HDFC offers loans of up to Rs 1 crore.
4. Tenure for NRI Home Loan
The time period for NRI Home loan is shorter than that of a regular home loan. Mostly, banks give a home loan to NRIs for a period of 15 years.
5. Repayment
The NRI has to pay the EMI cheques through his non-resident-external (NRE)/ non-resident-ordinary (NRO) account. He cannot make payments from his savings account (if any) in India.
6. Tax benefits
There are no tax benefits for NRI customers taking a home loan unless they file returns and become eligible to avail of tax rebates available for such loans.
The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We strongly recommend you to seek professional guidance pertaining to your query or doubt.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country. We are a unique, online portal providing all of the information to our users that could be relevant to them.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country.
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