NRI HOME LOAN : A COMPLETE GUIDE

Now a day’s many NRI's (Non - Resident Indian's) like buying property in India. Here My Reality India gives you a complete home loan guide for NRI's. Banks and housing finance companies (HFC's) easily give loans to NRI's. As most of the home loan provider companies consider the economical stability of the applicant, home loans for NRIs are quite feasible, because they are well in economic resource.

Loan Eligibility..!


The eligibility criteria of NRI's differ from Resident Indians based on a few parameters.

# The NRI loan applicant has to be  minimum 21 years of age.

# The NRI loan seeker has to be a graduate.

# The NRI loan applicant has to have a minimum monthly income of $ 1,800 -$ 2,000. The eligibility is also determined by the stability and continuity of NRI's employment or business. The eligibility of the applicant is also determined by his/her assets and liabilities.

Loan amount :
#  A home loan NRI applicant is eligible to get a home loan ranging from Rs. 5 lakhs to Rs 1 crore, based on the repayment capacity and the cost of the property.

#  A NRI can enhance his loan eligibility by applying for home loans with a co-applicant who has a separate source of income.The co-applicant will be spouse/sister/brother/son/unmarried daughter etc.

# An applicant will be eligible for about  80-85% of the cost of the property (House/flat) or the cost of construction as applicable. 

#  In case of purchase of land, 60-75% of the cost of plot of land based on the repayment capacity of the borrower.

#   loan tenure for NRIs is normally minimum 3 years to maximum 15 years. It varies bank to bank and HFC's.

Payment options:
Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted to the Bank or HFC from abroad through normal banking channels, the NRE (Non-Resident External) Account / NRO  (Non-Resident Ordinary) account in India. That is the NRI has to route his/her Equated Monthly Installments (EMI) cheques or ECS through his NRE/NRO account.

In the case of part disbursement of the loan housing, the monthly interest is payable only on the disbursed amount. EMI is payable every month, by the end of the month from the date of each disbursement up to the date of commencement of EMI.


Interest Rate  
The rate of interest for home loans to NRIs is higher than those offered to Resident Indians. The difference is to the extent of 1%-1.50%.  It varies bank to bank and HFC's.  Pre-EMI is calculated at the same rate at which EMI is calculated.

Keywords: NRI Loan Eligibility | NRI Payment options | NRI Interest Rate  

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1 comment:

  1. Great post! By this we can easily update what's going on in our mortgage. Thanks

    ReplyDelete

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