NRI Services
Who is a NRI?
In actual terms, NRI is the abbreviated version of a 'non-resident Indian. In other words, a NRI is a person who is living in India temporarily or permanently - place of residence is not within the borders of the country. The NRI ought to meet the following criteria of:
* Hold a valid Indian passport
* Earn foreign currency repatriable to Indian Rupees
Since 1970, Indian Government has begun to make special loan provisions for NRIs. As such, NRI home loans in India have become highly popular and common. Many national, regional, local and corporate banks including financial institutions are offering NRI home loan in India.
NRI home loan in India:
An Indian citizen staying abroad for employment/ pursuing business or vocation outside India or staying abroad under circumstances indicating an intention for an uncertain duration of stay abroad can avail of home loan for NRI in India.
Caretaker loans:
Home loans for NRI in India are usually given for residential properties in India. These loans can be availed for purchase, construction, improvement and home extension. The NRI's can avail these loans up to Rs. 100, 00,000-/ but not exceeding the 85% of the cost of property / estimate (for improvement / extension). The actual loan amount is determined after taking into account factors like repayment capacity, age, educational qualifications, stability and continuity of income, number of dependents, co-applicant's income, assets, liabilities and saving habits. The tenure of the loan ranges from one to a period of 15 years. The term however does not extend beyond the retirement age or 60 years whichever is earlier. The size of EMI depends on the quantum of loan, interest rate applicable and tenure of loan. Prepayment of the loan, ahead of the contracted schedule in part or full, is permitted subject to payment of nominal fees.
Types of NRI home loan in India:
» construct a house on your plot of land
» purchase an apartment from a builder
» purchase a bungalow/ apartment on a resale basis
» add an additional room or two to your existing home
» put up an additional floor to your existing home
» carry out internal and external repairs to your existing home
Maximum amount of home loan for NRI in India:
For home loans and home extension loans Rs1 crore or 85% of the property, whichever is less. For home improvement loans Rs1 crore or 70% of the cost ofproperty, whichever is less
Documents to be submitted for home loans for NRIs in India:
» Latest salary certificate/slip
» A copy of the latest employment contract
» Copies of relevant pages of the passport showing Name, Date of birth, Validity date and Visa stamping
» Continues Discharge Certificate for the past 3 years
» Proof of own contribution in financial terms
» Two local contact addresses with employment details and residence phone numbers
Loan security for NRI home loans:
The home loan will be secured by an equitable mortgage of the property. Equitable mortgage of property is created by way of deposit of original title documents of the property financed