Most Non Resident Indians are now getting lured by the consistent growth of the Real Estate back in the country. As a developing economy, India has a lot of opportunities to offer in terms of stability, good land rates and easy policies to make a house. Here are five points you should bear in mind while considering a NRI Home Loan:
1) What do you get as an NRI in terms of a home loan?
When you look at it largely, procuring a home loan as an NRI is as convenient as for a resident. You can apply home loan for four type of properties- ones that are already constructed; ones that are under construction; existing properties liable for changes and existing plots where homes can be made. You can either apply for a home loan for a new property or to make changes in an existing property. In both the scenarios, different lenders in the market will offer loan with different terms and conditions.
2) How much can you apply for as an NRI?
There is no set rule or a percentage fixed for an NRI. You can get an NRI home loan on the basis of three criterions- the first and foremost being your gross or net income; second being your country of current residency and last but not of least importance is the education and professional qualification that your application comes with. Based on all of these, a bank will further offer you a loan most suited to your needs along with different terms and conditions.
3) The rate of interests along with the tenure
The rate of interest is one factor where there is differentiation between an NRI and a resident Indian pertaining to home loan procurement. A resident can apply up to a loan of 30 years depending upon his age and net income; whereas an NRI has to re-pay his loan within five to fifteen years. This largely depends on your loan amount as well as bank. An NRI is also subjected to an increase of 0.25%-0.50% increase in the interest that he pays.
4) Change in loan scenario if there is a change in the NRI status
To repay your loan, you have to use your NRE account or an NRO account. In between the tenure, if you happen to change your status from an NRI to a resident; then all the conditions of the loan specially the interest as well as the tenure will be changed. This is highly unadvisable as the process can get tedious and troublesome for the buyer.
5) Documentation required
The documentation required to get a NRI home loan is quite an obvious list but still an elaborate one. You require the following documents to be eligible for a loan:
– A valid visa
– An official permit of your work
– Copies of passport
– A work experience certificate reflecting upon how much you have worked.
– Statements from the bank
– NRE or NRO accounts statements
– A resident card, if you are currently based in the Middle-East
Your bank is sure to provide you with an exhaustive list of the documents you require.
All of these points need to be kept in mind when you are applying for a NRI Home Loan.