What is NRI home loan?

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.

What is property loan?

Anyone would like to own a house of their own. The human dwelling has evolved alot since a last few years. It has changed from a cave to house that is packed with the amenities. Buying a house in a metropolitan city also a common town requires a huge amount of money. Not only money requires good amount of planning. Now with the various home loan schemes given by the various banking and the non-banking institutions the common man’s dream of owning a house has become true. You can apply for a home loan at various banking and non-banking institutions which provides property loan. These loan against property are given at a lower interest rate which can range between 9-10% of the loan amount. The processing fees over this home loan are very nominal that is it is 1-2% of the total amount.

Following are the factors that are considered while availing the home loan to an individual:

The nature of the job of an individual is the most important factor that is considered by the various lending institutions. The income of the person decides the loan amount the person is eligible for. As the income is source from where the person is going to pay the emis it is taken into consideration largely. Location of the property is another important factor. If the property is closely located to the major tech hubs, educational hubs, falls under the project that are government authorized the loan gets sanctioned easily. The government approved projects are always safer to buy. The personal details of an individual are also taken into consideration. Details like the income source, the spouse’s income, the credit score of the individual are all taken into consideration before the banks sanctions the loans to an individual. If an individual has a good credit score he can easily negotiate for a lower interest rate. A small concession can also make a lot of difference.

Whenever you avail for a property loan club all your incomes to get the best deal on your loan. Additional income like rent or any other immediate income your family earns will help you move out of the eligibility bracket and avail for a higher loan amount. Have a good credit rating is also important as the lending institutions  do a background check of the person before availing him a property loan. This will help him to avail for a loan faster and he can negotiate with the bank for lower interest rates. The documents that are required by the lending institutions for the loan against property are your income certificates, employer qualification, and experience.

It is always to keep your documents hand. Also compare the property loans on the various comparing websites this will help you to avail for a better loan with a lower interest rate and flexibility in the repayment method. Every borrower must evaluate his needs and choose the appropriate loan against property. Also he should calculate the income and his expenditure before deciding the loan amount he is going to opt for. He should also be very clear about the calculation of the interest rate, the monthly payment of the EMI and the fees he has to pay.

Interest Rates- One of the major aspect your housing finance.

Home Loans Interest Rates: Create a Space of your own with HDFC Home Loans. Best housing loan interest rates for women and salaried individuals. Apply now!.

Things You Should Know Before Changing Your Home Loan Lender.

Are you in a mindset that you are paying a home loan with high interest rates and charges? Is high EMI on home loan turning to be a burden? It is essential to check the status of home loans that you currently have in your plate. Ever you feel the interest is too high or the EMI are too much to take, make use of the option of transferring home loan to the different lender. But before you make a decision to change home loan to a different bank, here are few things to be taken into consideration.

Are You Eligible For Transferring Home Loan?

Certain banks will give home loan option only to salaried individuals. Therefore in case if you are self-employed it is important to check with the new bank if they are ready to take your best home loan or not. And also check the fee details that you will have to pay to new banks for transferring your outstanding home loan. Most probably the fee details will be about 1% of the outstanding loan amount. So if the outstanding amount is higher, fee will also be proportionally higher. Also check if balloon payments are accepted by the new bank and what would be the pre-closure charges.

Check with Your Bank to know if they will lower the Home Loan Interest Rate:

Even before making any decision, firstly check what your bank with existing home loan has to offer you. Some banks might be ready to lower the interest rates or EMI with the interest of not losing customers. This option will help you in saving a lot of time, money and effort. There will be no need to run around through new formalities and procedures. Banks will be flexible to reduce interest rates or EMIs by considering the past payment records and credit worthiness of the borrowers. Thus it is essential to have a very clean payment track record of EMIs and interest.

How much Will the Transfer of Loan Cost?

In most of the cases banks will charges transferring fee. This fee will be applicable from the bank in which there is existing home loan and also from the new bank to where the loan has to be transferred. Calculate if these fees are worth the transfer. In case if your loan is only for a short period, then there will be not many benefits. Thus do a complete analysis before initiating the request.

Terms and Conditions of Transfer of Home Loan:

It is crucial to be aware that once you shift your best home loan to a new lender, you will be bound to their terms, conditions and policies. Go through all the terms and conditions thoroughly to make sure, it is definitely going to be a long term benefit by transferring the loan amount. Some banks might need your salary account to be transferred to their bank in case to take up the best home loan from different bank. These will involve a lot of formalities and paper work. Try avoiding such types of home loan transfer as will involve your employer to give consent to the same.

Is the New Bank Ready to Accept the Debt Amount?

This is the most important part of transferring a best home loan. The new bank should be ready to take up your existing debt by offering better rates and charges or EMI option. Check, what is your outstanding balance from the existing home loan bank and enquire if there is limit for taking up loan in new banks. Suppose your outstanding loan amount is 15 lakhs and if the new bank has limit only till 10 lakhs then there is no point of initiating home loan balance transfer request.

Make Sure There Are No Cheque Bounces:

It is quite common that loan borrowers will give lenders posted dated cheques for monthly installment withdrawal. But the main issue with this style of EMI is there are high chances of cheque bounces in case if there is no sufficient balance in the borrowers account when the lender presents cheque. This will affect the CIBIL rating of the applicant and could lead to not getting approval for new loans or loan transfers.

Due to these reasons it is very essential to take time to decide whether to transfer home loan or not. Always think through and consider the pros and cons of going through best home loan balance transfer. Unless this brings long term benefits, don’t opt for home loan balance transfer.

{Source: https://financebuddha.com/blog/things-you-should-know-before-changing-your-home-loan-lender}

Interest Rates- One of the major aspect your housing finance.

House Loan Interest Rates: Create a Space of your own with HDFC Home Loans. Best housing loan interest rates for women and salaried individuals. Apply now!.

Loans at Lower Interest Rate.

House Loan Interest Rates: Create a Space of your own with HDFC Home Loans. Best housing loan interest rates for women and salaried individuals. Apply now!.

Factors that determine the home loans interest rates.

Home Loans Interest Rates: Create a Space of your own with HDFC Home Loans. Best housing loan interest rates for women and salaried individuals. Apply now!.