- First Home Loan Lender Australia
Having a dream house in the home country is dream come true for every NRI. People having Indian citizenship who leave their home town and settle abroad for Jobs in MNC, branches of Indian government abroad or the government bodies of UNO, Higher Education or for setting up their own business are termed as NRI’s.
For such NRI’s the government of India and Private Banks provide various schemes and Home Loans which would help the NRI’s to buy their own Home in India. Each bank may differ in the requirements and terms & conditions required to be fulfilled for availing a Home Loan. Some of which are below:
What type of investments can be made with the NRI Loan?
A NRI can avail a NRI Loan for the purchase of a flat, row house or a bungalow with the loan amount.
Eligibility:
A NRI can avail a home loan based on min and max age of the applicant. Minimum age of 21 years and maximum age of 60 (for salaried) / 65 (for self-employed) at the time of loan maturity. The age criterion varies from one bank to the other depending on each banks policy.
Monthly income: Some banks or HFCs also count the NRI’s Monthly income as eligibility criteria to check the creditworthiness and repayment capability of the applicant.
Loan amount and Tenure of the loan: Each individual has its own preference, but the maximum loan amount that he or she could be qualified for depends upon income source, company profile or expected business parameters by banks or HFCs along with their terms and policies. Taking NRI home loan means long-term repayment tenure of around 15 to 20 years. But again, it also dependents on the customer’s profile, customer’s age at maturity of the loan, Property’s age at loan maturity, specific repayment scheme as may be opted and any other terms which may be applicable. Through home loan emi calculator it can be calculated
Security:
The NRI would require keeping a security for the Loan which would generally be security interest on the property being financed and / or any other collateral / interim security as may be required by the bank.
Interest rates: the interest rate for NRI home loans is slightly higher for NRI’s as compared to the Indian residents. Private Banks have an interest rate which ranges from 9-10% approximately and may be given on either fixed or floating rate by the banks.
Processing fees: Private Banks charge a nominal processing fee which is Up to 1.25% of the loan amount or Rs. 3,000 whichever is higher, plus applicable taxes.
Documents required: For a NRI account a bank requires a copy of passport which is mandatory, voter id card, proof of income, other documents Photocopy of the valid resident Visa stamped on the Passport, Passport size photograph of all the applicants / co-applicants to be affixed on the Application Form and signed across, Past occupational history, Cheque for processing fee and the property related documents
Repayment options:
Every bank or HFCs has their repayment policies for the NRI home loans. Some may offer Tranche based repayment while others have different repayment option. However the important fact to keep in mind is that the repayment of NRI loans can be made Indian Rupees only. According to the RBI regulations the repayment of the Loan can be made only by the remittances through non-banking channels from abroad or through a Nonresident ordinary rupee account.
Thus, with the help of the above mentioned factors an NRI can easily accomplish his goal of having a dream house in his home country with the help of NRI home loans.