NRI Home Loans are available for the following purposes:
Self-construction of a property on a plot of land
Purchase of a plot of land allotted by a society/development authority
Renovate/improve an existing property in India
Purchase of a house either under construction or on resale
Loans are also offered to NRIs against their NRE deposits. These loans can be repaid out of NRE funds but the interest would be charged at a commercial rate. Loans to Non-Resident Indians are also provided against FCNR deposits.
NRI Home Loans can be availed by any NRI. However, they might differ from a normal Home Loan given to resident Indians in terms of tenure, documents required and repayment. Interest rates might also be slightly higher than those offered to resident Indians. Most of times it is 0.25% to 0.50% higher for NRIs. The NRI can usually get funding for only 85% of the cost of the property. The tenure of loan may also be short and could range from 7 years to 15 years. The size of the loan depends upon the borrower’s repayment capacity. Home Loan eligibility calculations will be the same as that of resident Indians. The EMI can be scheduled using their Non-Resident Ordinary (NRO) account or the Non-Resident External (NRE) account.
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