Buying a house
is not difficult for Non-Resident Indians (NRIs) any more as the NRI Housing
Loan makes the property investment a lot more convenient. Any individual
staying abroad for Employment or for carrying on business or vacation outside
India or for any other purpose in circumstances indicating an indefinite period
of stay abroad are eligible for NRI Housing loan. Apart from that, Government Servants posted abroad on duty with the Indian missions or deputed abroad on assignments
with Foreign Governments or Regional/International Agencies are also entitled
to these loans.
NRI Housing loan is offered by some of the Premier Financial Institutions
and banking in India such as ANZ Grind lays Bank, ICICI Bank, HDFC, HUDCO,
CITIBANK, LIC etc. As an NRI, you can avail a maximum loan of Rs.1, 00, 00, 000/-
or 85% of the cost of the property including the cost of land, whichever is
lower. The rate of interest will vary from 11.25% to 14.25% per annum depending
in the Financial Institution. At the time of making application for the loan aprocessing fee is payable between 1 to 2% of the loan amount that is applied
for depending on the Institution.
The amount of loan to be borrowed will depend upon a person's
repaying capacity. To arrive at the repaying capacity, Banks do take into
consideration factors such as income, age, qualifications, work experience,number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation, alternate employment prospects when the concerned
person returns to India and savings history.
While applying for a home loan in India, the following documents
are to be submitted along with the application:
1.
Employment/Residency related documents:
- Employment contract;
- Latest salary slip;
- Latest work permit;
- Identity card issued by the present Employer;
- Visa stamp on the passport;
- Continuous Discharge Certificate (if applicable); and
- Overseas Bank Account Statement of the last few months.
- Receipts for payments made for purchase of the dwelling unit;
- Copy of approved drawings for the proposed construction / purchase /extension;
- Agreement for Sale/Sale Deed;
- A detailed cost estimate from Architect Engineer for property to be purchased / constructed/extended;
- Allotment letter;
Once the loan is sanctioned, the period of repayment of the loan
is determined which normally falls in the range of three to ten years. Loan can
be repaid through Equated Monthly Installments (EMIs) comprising principal and
interest. EMI payments can be made through post dated cheques from yourNon-Resident (External) Account/Non-Resident (Ordinary) Account in India.
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