Can NRI Get Home Loan In India | Home Loan In India for NRI
If NRI want to have a own home back in his homeland—India. Then for buying a home can be a tedious process for him. However, it’s not impossible for him to get the home loan in India. He must have to go through various procedures. Still it is the main question of the many people that Can NRI Get Home Loan In India?
However, on the basis of the some definition of the Foreign Exchange Management Act, 1999 (FEMA), an NRI (non resident Indian) is someone who resides outside India for “employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period. Moreover, NRI can easily avail for the home loans for purchase of flat, row house and bungalow from developers. NRIs can also avail home loan for home improvement or extension, purchase of plot and home furnishings & consumer durable. The procedure to avail for the home loan also remains more or less the same as applicable to any resident Indian.
Can NRI Get Home Loan In India?
NRI can easily get the home loan in India. He just need to follow some basic rules and regulations. As well as must provide some essential documents and the legal papers. In order to get the home loan. Hence, it can be said NRI can get home loan in India. BY the following given methods.
Check for Foreign bank:
First of all check if an Indian bank has a foreign branch in your country of residence. Through this you can apply for a loan without coming to the India.
However, these branches usually coordinate for the entire loan process in India from approval, disbursement right up to the repayment and collection of your property documents. Banks offer home loans to NRI for up to 15.
- Get the copies of the valid documents such as passport, salary certificate and statements of non-resident external (NRE) or non-resident ordinary (NRO) accounts, bank account statement / passbook for the last six months and a valid job contract or work permit.
- You must have a stable job.
- Detail of your permanent address is also required.
- Fill the application form.
- In case of purchase / construction of house, the documents needed are original title deed, non-encumbrance certificate on the property (for 13 years), possession certificate and land tax receipt.
Amount of Loan:
However, banks offer generally 80% of the landed price of the property plus costs towards registration and stamp duty. Moreover, you have to arrange for the remaining 20%. For example if the cost of the home loan is Rs.1 crore, you can take a loan of Rs. 80 lakh-Rs. 85 lakh. The bank will provide you the home loan if you have the ability to repay it. The interest rate on NRI home loans is normally the same as that for a resident Indian
Disbursement of home loan:
After you have selected the loan will be disbursed . The property and the process must be technically and legally sound and you have paid your own contribution towards the purchase of the property. The cheque can be sign in the favor of the developer or the seller.
Repayment of Loan:
The loan is provided to you on the basis of your repayment capacity. Such as your age, income, number of the dependents, spouse’s income, credit history, assets, liabilities, stability and continuity of occupation and savings history. Moreover, the repayment of these loans can only be paid through NRE or NRO accounts with remittance from abroad. The repayment must be done in Indian rupees only. As well as the down payment must be done in the normal banking channels.