An Easy Guide for Nris to Take Home Loan In India
Nov 03, 2017 Home Loan
NRIs have been always interested in Indian real estate industry. The number of NRIs has grown in the past few years and is growing day by day. But they often have to deal with problems due to lack of transparency and knowledge about various rules, regulations, eligibility etc. So here are some facts about home loans that can help NRIs to avail the loan smoothly.
Documents: The required documents for an NRI to apply for home loan in India includes a permanent address in India, passport, visa forms as a part of KYC process, experience certificate, appointment letter, employment contract, work permit, NRE and NRO account statements and salary certificates as well. Also, the NRI needs to provide tax returns proof from abroad and address proof of foreign land verified by the employer.
Eligibility: In order to determine the loan eligibility, qualification certificates and income proof are required. The minimum qualification an NRI required is graduation. Both repatriate income and the income earned in India can be included in the income to be considered under eligibility criteria. Banks usually consider the net income that the income after paying taxes in abroad while deciding the eligibility.
Co-applicant: For an NRI to apply for home loan in India, having a co-applicant and GPA is mandatory. A GPA should be either the guarantor for the loan or co-applicant, but this includes certain exceptions. If a local resident is not available as co-applicant then a guarantor is a must.
Tax benefits: Unless NRIs file tax returns and are eligible to get tax rebates for such loans, he or she can’t avail any tax benefits after taking the home loan.
Loan duration: The loan duration of the home loan availed by BRI usually have a shorter duration than the regular home loan ideally the repayment capacity of an NRI is stronger than an Indian citizen. The home loan tenure given to an NRI is for a period of 15 years only.
Interest rate: The interest rate for NRI home loan is same as that of a regular home loan.
Loan value: Banks usually look into an NRI income to ensure loan value. Financial institutions offer up to 80 to 85 percent loan for the property value to the NRIs based on their monthly income.
Repayment: NRIs needs to repay their loan in Indian currency only through NRE or NRO accounts.
Disbursement of the loan amount: At the time of disbursement, it is necessary that the GPA holder is present in the bank premises. Because the person as GPA needs to sign the disbursement documents as the primary applicant is not present in the country.
Documents: The required documents for an NRI to apply for home loan in India includes a permanent address in India, passport, visa forms as a part of KYC process, experience certificate, appointment letter, employment contract, work permit, NRE and NRO account statements and salary certificates as well. Also, the NRI needs to provide tax returns proof from abroad and address proof of foreign land verified by the employer.
Eligibility: In order to determine the loan eligibility, qualification certificates and income proof are required. The minimum qualification an NRI required is graduation. Both repatriate income and the income earned in India can be included in the income to be considered under eligibility criteria. Banks usually consider the net income that the income after paying taxes in abroad while deciding the eligibility.
Co-applicant: For an NRI to apply for home loan in India, having a co-applicant and GPA is mandatory. A GPA should be either the guarantor for the loan or co-applicant, but this includes certain exceptions. If a local resident is not available as co-applicant then a guarantor is a must.
Tax benefits: Unless NRIs file tax returns and are eligible to get tax rebates for such loans, he or she can’t avail any tax benefits after taking the home loan.
Loan duration: The loan duration of the home loan availed by BRI usually have a shorter duration than the regular home loan ideally the repayment capacity of an NRI is stronger than an Indian citizen. The home loan tenure given to an NRI is for a period of 15 years only.
Interest rate: The interest rate for NRI home loan is same as that of a regular home loan.
Loan value: Banks usually look into an NRI income to ensure loan value. Financial institutions offer up to 80 to 85 percent loan for the property value to the NRIs based on their monthly income.
Repayment: NRIs needs to repay their loan in Indian currency only through NRE or NRO accounts.
Disbursement of the loan amount: At the time of disbursement, it is necessary that the GPA holder is present in the bank premises. Because the person as GPA needs to sign the disbursement documents as the primary applicant is not present in the country.
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