Dec 10
6
The returning Indian as well as the NRI is on the lookout for a homely abode in India where he or she can stay with family during yearly trips. The demand in the segment of loans for NRIs – non resident Indians have increased. In this article we will study how NRIs and PIOs can get loans from India, business loans or home loans. Demand for quality apartments that are not only upscale, but high on services and facilities too, are being sought after these days by Indians living abroad. Real estate developers in India are bringing in novel themes in their construction to cater to a growing market of NRI’s who want to re-live their lifestyle at their country of origin.
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Banks have representative offices aboard to cater to NRI’s
It has also set the trend for financing of apartments by major banks in India like the ICICI and HDFC banks among many others. Many housing finance companies catering primarily to NRI”s has set up shop in countries that has a large concentration of people of Indian origin. Many banks also have representative offices to offer housing loans to NRI’s in Singapore, Bahrain, New York, Dubai and UK to tap the burgeoning market of property investors.
There is also a rat race among ICICI, HDFC, SBI, State bank of India, Citibank, CanFin Homes, LIC Housing Finance as well as a large number of scheduled banks to offer ready loans to NRI’s to buy select property in India. And the property is not only limited to apartments, but have resorts, individual villas and homes as well on offer. The loans offered by major banks and housing finance companies are tailor made for the NRI’s.
ICICI bank has online facilities for loan processing, attractive interest rates on monthly reducing basis which are fixed as well as floating. Fees are reduced and in some cases do not exist at all and you can avail of easy part payment facilities. You can also get free accident insurance for the outstanding loan amount and absolute doorstep service while you are in India.
You need to be at least 21 years of age and if you are under some employment, then the maximum age limit is 65 depending on whichever comes first at the time of loan maturity.
Margin money and easy repayment
For all salaried NRI applicants, they require staying abroad for at least one year and for self employed, the limit is 3 years. The loan in provided to the NRI for purchase, construction, renovation, alteration and repair of a house or plot when they return to India. Indian passport holding NRI’s are eligible for the loan if they earn a minimum of Rs 10,000 along with their spouses and close relatives who are technically residents with the NRI.
The margin money requirement varies as you would be required to keep 20 percent with the bank if you take Rs 30 lakhs and 25 percent for Rs 30 lakh to Rs 3 crores. The loan is disbursed in three stages, 30, 40 and the last 30 percent is provided just before the building is completed.
You will get money for buying a land or building, but for land, the loan will be restricted to only 30 percent of the entire project cost. These facilities are becoming very popular among NRI’s as they can plan their retirement in India well in advance.
The repayment is easy and simple as the process begins from 18 months of the loan disbursement or just after the completion of the house, whichever is earlier. You can remit money from aboard or use the NRE/FCNR/NRO A/c to transfer money and relatives residing in India are also allowed to make payments on your behalf.
If you wish to rent out the property, the amount received will go towards loan repayment. Banks usually require you to fill out application form, submit 2 passport size photos and a declaration.
Please write into us if you want to know how to apply for a NRI housing loan in India at very affordable and lowest interest rates.
