Tips to get an easy loan for NRI in India
Owning a house is a dream for most of us and thanks to the assistance by different loan schemes that provide diverse home loans. However, you might wonder whether it is so simple for Non- Resident Indians (NRI)? Is it really simple for them to attain a home loan and acquire a property of their choice? You will be glad to know that NRI home loans are easily available in India, subject to completion of certain conditions.
In the case of an NRI, all banks and financial institutions go by the definition laid down by the Reserve Bank of India (RBI). The definition states that “An Indian who holds a legitimate passport and stays abroad for job purpose or carrying out business or vocation under conditions signifying an intention for a non-specific duration of stay overseas is an NRI. So the people who are eligible for NRI home loans under this classification would be the ones who are employed or doing business outside India, those sent abroad by the Government of India or corporations or those Indians who are associated with International agencies like IMF, UN, World Bank etc.
Properties eligible for loan:
Financial institutions such as PNBHFL, DHFL, HDFC, etc. provide Home loans for NRI for any property that is ready for possession or under construction, construction of property on a plot which is owned or for refurbishing the existing property. You are qualified for a loan if you buy a plot.
Maximum amount of loan allowed and other conditions:
Income and educational credentials plays an important part in determining the maximum amount of loan can be dispensed to an NRI. Banks allow a loan of 80-85% of the worth of the property, subject to the Gross Monthly Income (GMI) of a person. The maximum loan amount granted is in the range of 36-40 times GMI.
Rate of Interest
As the risk involved is higher, NRI home loans are charged with higher interest rates. Generally, there is a margin of 0.25% -0.50% that is charged.