Buying a home in the
country is the most laid back investment for the nonresident Indians. Taking a
home loan in India for a buying a house is always better. NRIs are allowed to
take home loan in India they are called as NRI home loan. These loans are
offered by various banking and non-banking institutions. Here are the
requirements that are required to avail for a loan and how it differs from the
normal home loan taken by a resident Indian.
A non resident Indian
should meet the criteria on the age and the years of work experience abroad.
The criteria vary across from lending institutions to institutions. The number of years a NRI should work out of
the country for availing for a house loan interest is 2 years. If you’reself-employed should have stayed in
the foreign country for at least 3 years. Also the term and conditions
differfrom country to country. It is different for the NRIs that stay in the
gulf countries and different for the nonresident Indians who stay in the
European and American countries.
For the process of
documentation you will need a copy of your password, visa and employment
related documents. You will need the documents of the salary slips, the
appointment letter, the employment contract and the address proof. Because all
these documents are mandatory. These documents are sent to the Indian branch of
processing for the verification. The overseas branches just collect and send
the documents to the Indian banks every paper work happens in the Indian
branches.
Earlier there were
differences in the interest rates that are charged for the nonresidents and for
the residents of India. But now the interest rate charged for both of them are
the same. Also the loans which are sanctioned to the NRIS are large as compared
to the resident Indians. The processing which capped over the NRI home loan is very
nominal which 1-2 %of the loan amount.
Also during the
repayment of the nri home loan it is due only in the Indian rupee and not in
the foreign currency. Also the prepayment of the loan is permitted. But there
some exemptions. On a normal home loan a resident Indian can avail for tax
benefits up to 1.5 lakh. Most of the NRIs are not aware of the tax implication
and just keep on repaying the loan. They use their abroad incomes to repay
their loan.
Here
are the features of the NRI home loan:
- The tenure of the home loan is locked into 12-18 years.
- There is no difference in the interest rates of the normal home loan and the NRI home loan.
- Repayment of the loan is done in Indian currency.
- Loan repayment is eligible for exemption of tax only if there is an additional income earned from India
The banking and the
non-banking institutions have been providing counseling to the potential
customers in case if they are not sure about which property to buy. House Loan Interest
have thus made the dream of owning a house true of a nonresident Indian.
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