Wednesday, 19 March 2014

NRI HOUSING AND FINANCE IN INDIA


Buying a house is not difficult for 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 vocation 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 on the financial institution.At the time of making application for the loan a processing fee is payable which will vary between 1% to 2% of the loan amount 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 home loans 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).
· Overseas Bank Account Statement for the last few months.

2.   Property Related Documents
·  Receipts for payments made for purchase of the dwelling unit.
· Copy of approved drawings for the proposed construction/purchase/ extension.
· 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 your Non-Resident(External)Account/Non-Resident (Ordinary)Account in India.

For more details,


No comments:

Post a Comment