Having an own house is a common dream for most of us and the people who are living far from our country are not an exception and have the same dream as well. Having an own house in the country is something which keeps them connected to their roots and acts as an investment as well. However, earlier it was a difficult process to get a home for the non-residential Indians as most of the banks were not easily ready to lend them. If ready also required lots of documents and

But thanks to the diversified and simplified home loan scheme which has made it easy for the NRIs to have a home in their own country. This NRI scheme is known as NRI Home Loan Scheme.   

Home Loans in India: One for Every Need!

Important Things to Know About NRI Home Loans

Documents Required with Application

NRIs need to submit the same document as the people living in the country in terms to avail the home loan. However, there are some additional documents which they need to submit are-

  1. Visa
  2. Passport
  3. Work permit
  4. Employment Proof

Submission of the Documents

Now the borrowers need not wait until they come to India again or need not come to India specially to apply for a home loan. Many of the Indian banks have opened their branches in other countries. Apart from this facility, all the banks provide online service from where one can apply and for the loan easily. Even the documentation process with these banks is online.

Interest Rates

The interest rate at which a NRI can get a home loan in India is generally higher than the interest rate at which it is offered to the Indian residents. The difference in the interest rate is not much but it higher by 0.25 to 0.5 %. This difference is because of the higher risk involved lending. The higher risk is involved as the borrowers are not living in the country and if they default in the payments or if they are not able to repay the loan, Indian banks will not have many options to recover it.   

How to Deal with Home Loan Interest Rate Hikes

Repayment of the Loan

All the repayments towards the loan should be done in Indian currency only.

Which Type of Properties are Allowed?

NRI home loans can be availed for any kind of property such as which are ready for the possession, under construction, construction of property on an owned plot, buying a plot and so on.

NRI Home Loan Amount Range

The loan amount which is sanctioned to the NRI’s as a home loan depends on their educational qualifications and annual income. Generally, the loan sanctioned is 80% to 85% of the price value of the property. However, the interest charge totally depends on the income and profile of the borrower.

Tenure Period of a NRI Home Loan

The tenure period of a NRI home loan is different from the tenure period of a normal home loan. The tenure of a NRI Home loan ranges from 5 to 15 years. A borrower can themselves decide the tenure duration according to his/her repaying capacity, else the lender will decide it according to the borrower’s profile.

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What to do in the case of a Change in Status?

In case the NRI shift from the other country to India back for whatever reason the loan account of the borrower will be changed from NRI account to the normal home loan account.

Home Loan option for NRI has become very easy with the NRI Home Loan options available from all the top lenders in the country. Simple, Easy process with affordable rates.