Why owning property in India is just as easy for NRIs as it is for residents.

There is a misconception that it is difficult for NRIs to buy property in India with a home loan. Some NRIs feel that the properties eligible are very restricted, some feel that the interest rates applicable are much higher and that the tenures are very short. However, all this isn’t entirely true and this article will highlight the similarities between normal home loans & home loans for NRI in a bid to prove just how easy it is to own a home in India, regardless if you are an Indian resident or NRI.

Firstly, properties eligible under an NRI home loan are almost the same.
Some people feel that there are major restrictions on what kinds of property an NRI can buy with a home loan. This is not true and in fact, the properties eligible are almost the same, it’s just that NRIs cannot purchase agricultural land, plantation land or a farm house in India.

Besides this, an NRI can use a home loan for self-construction of a property on a plot of land, purchase of a plot of land allotted by a society/development authority, renovation of an existing property in India, purchase of a house either under construction or on a resale. An NRI can also use a home loan to buy a second home.

Next, the interest rates are also the same.
Most lenders will provide you an NRI home loan with interest rates that are just the same as a normal home loan. The interest rate may range from 8.35 to 9.05 percent, which is just the same as a normal home loan for Indian residents.

The tenures are also similar.
Some people think that a home loan for NRIs offers very short repayment tenures. This is again not true, with most leading financers providing home loans for NRIs with tenures as long as 15 years. Some lenders provide long tenures too, but this is purely at their discretion.

An NRI Home Loan is one of the easiest ways to purchase a home in India. It offers potential customers the perfect way to finance their homeownership plans. In some cases, you don’t even need to leave your country to avail one. If the lender you opt for has a branch in your country, you can carry out the entire process from that branch itself, without the need of ever coming to India.

Indian property is always a good investment. If you ever think of going in for such an investment, don’t hesitate to go in for an NRI home loan. These loans can help you buy the property you have your eye on without stressing your financial capabilities. There also a plethora of options to choose from and you can refer to the many aggregator websites to make a better informed decision. What’s more is that most leading lenders have also introduced advisory solutions & expert consulting that will give you legal & technical advice for all your purchase related queries.

We hope this article has been helpful, if you still need further guidance, you can consult a financial expert. He or she will give you valuable insights to the NRI home loan domain.

All the best!

See how the internet is helping NRIs buy their dream home.

Buying a home in India is always a good idea for an NRI. Either you have a place to stay every time you visit or you have a good investment bringing you a steady flow of rent money that you can move into when you retire and come back to India to settle.

However, most NRIs give property a pass due to complex procedures and the frequent through and froes required to procure property. If you’ve got Indian property on your mind but are worried about the tiresome process than we have good news!

You can find, get finance and buy a property without stepping foot in India at all. Wondering how? Well, this article will detail just how you can use the internet to become a homeowner with complete ease.

Firstly look for an online home loan for NRI:
Yes, buying a home in India with your own money is a difficult proposition. However, with the help of a home loan for NRI you can secure a home by paying as little as 10% of the property’s value. If you’re thinking a home loan will require you to visit India then think again because most leading lenders will allow you to carry out the entire process of applying, submitting documents and paying to processing fees completely online. Then you can have the money transferred to your NRO account and continue with the purchase of the property.

But how can you buy find a property without visiting India?
Well, leading lenders will provide you Property Search Advisory Services in addition to your home loan for NRI. You can avail these services to have end-to-end advice on elements such as developer projects, location, documentation and offerings. This allows you to compare properties and find a home that you find suitable without flying back and forth.

You can even get home loan advisory & legal counseling online.
Yes, you can have all your NRI home loan related queries answered online or over the phone with Home Loan Advisory Services. If the lender you choose has a branch in the country you presently reside in you can even visit their office to in depth details, counseling and advice.

The internet can also help you plan your home loan for NRI
Yes that’s right, you can plan and budget your repayment process with complete ease with just a few clicks of your mouse and a few taps on your keyboard by using an online EMI Calculator. This tool provides you with a detailed break-up of your repayment process by providing you a near-exact EMI amount for every month of your repayment schedule.

This allows you to budget your income and expenses to accommodate the repayment amount. To use this tool all you have to do is visit the website of the lender or go to a home loan aggregator site, find the calculator, input details of your loan such the amount, the tenure, the interest rate and hit enter! The calculator will provide you with the complete amortization table for the entire loan tenure.

So this is how the internet is making it possible for NRIs to buy their dream home without the up and down normally associated with buying a home in India. We hope it has been helpful and do consult a financial expert before you proceed further.

All the best!

Unabated yearns for a home in homeland; possible with a home loan.

After staying abroad for a long time because of your work, you want to spend your rest of the life post retirement in the lap of your motherland, but buying a property in the days of inflation is a task work both physically and financially. Since it is a lifetime investment so you need to choose a proper location where your house would be situated considering the security feature of the area. The NRIs enjoy the currency advantage owing to depreciating cost of INR, beefing up their purchasing power.But buying a home nowadays is not so easy; it can be made easy with a housing loan for NRI. With the emergence of various financers a wide choice of home loans are available for the Indian and NRI borrowers.

Irrespective of your being a salaried or self-employed NRI you can take the housing loan for NRI. If you are planning to buy a new home or resale home or planning to construct a home on the plot bought or planning to extend and renovate your existing property then you can take the loan for it. Along with generic documents, you need to submit passport and visa copy. In case you want to submit the documents through & take decisions on your behalf then entitle any of your relative with the power of attorney. In your absence your relative with power of attorney can be present to avail disbursement of the loan amount.

As an NRI you can get a maximum of 20years to repay your debt at a competitive rate of interest. The rate of interest depends on the loan slab, type of interest and loan eligibility of the borrower. As a borrower you can make a choice between fixed and adjustable rate of interest, the dilemma between the two rates can be sorted with a combination of two, popularly known as truly fixed interest in which the borrower has to pay fixed rate of interest for a stipulated time then the interest rate switches to adjustable rate of interest.

If you invested in under construction property, then you have to pay the interest till the completion of the construction after which the EMI starts. If the investment is done in already constructed property then the EMI commences immediately. You can get maximum of 70-90% of the property value depending on the loan amount. You can enjoy income tax deduction on the paid interest.To repay the loan amount the NRI borrower has to possess a Non-resident external or a Non-resident ordinary account, and he can do the payments only in Indian rupees with post dated cheques and other available options.

You can have a co-borrower while applying for a housing loan for NRI. It’s not necessary that co-borrower needs to be a co-owner; for your benefit you can add an earning member from your family. Once you approach the financers, they can even guide you for selecting your property based on your loan eligibility.

The home loans for NRI can help you to come back to your motherland and strengthen your roots and live the life after retirement amongst your childhood friends and relatives. So nothing can be better than a home loan for serving your purpose.

Home loan for an NRI.

Staying away from the motherland can’t stop you from building a house of your dream. The home loan for NRI from the banks and other financial organizations can help people working abroad to invest money in buying properties in India. There are many public and private sector banks that have come up with the financial aid for the borrowers. The amount of money an NRI can avail as the loan amount depends on three main factors; the educational qualification, place or country of residence and gross monthly and net monthly income. The financial institute’s haveset a minimum criterion for earning based loan application.

The properties that are covered by the home loan for NRI scheme are of four types;the properties that are already constructed, under-construction property, properties that are to be constructed over pre-owned plots and existing properties, which requires change.

The NRI home loan tenure and the rate of interest differ from that of a residential home loan. Indians can get tenure up to 30years for repayment, but, an NRI’s tenure is restricted to five to twenty years. The tenure is based on the financial institution granting the loan and the loan amount. Some organization charges 0.25-.50% more on the base rate of interest as compared to a residential home loan. But, some banks punches the same rate of interest as the residential home loan of 8.7-9.2% in general and 8.65-9.15% for women borrowers. The borrower can select between adjustable/floating rate of interest and fixed rate of interest. The floating rate fluctuates depending on the market situation, but, the fixed rate doesn’t change. The borrower should ensure that no hidden charges are there.

Copies of passport, valid visa and permit for work, employment contract, work experience certificate, salary circulars and employment card are some of the required documents required for the application of home loan for NRI. If the NRI borrower wants a resident back home to do the document submission on his behalf, then the NRI has to grant that person a Power of Attorney, so that the resident can complete the process for him. The NRI borrower has to make the down-payment of 10-30% of the loan amount as margin money, rest is disbursed by the lending organization. The amount may change with different organizations. As a security the bank keeps the allotment letter of the lending property with itself, and returns it to the borrower, once, the loan amount is paid.NRI borrowers can also avail tax benefits under section 80C, Income Tax 1961.

For repaying the loan amount one has to possess a Non-resident external (NRE) or a Non-resident ordinary (NRO) account, and the payments can be done only in Indian rupees. During the repayment procedure, if the NRI borrower decides to become a resident of India, the various aspects of the loan; such as loan amount, tenure and rate of interest, all will change to residential home loan borrower. Some banks offer the borrowers the option to reduce the applicable rate through Conversion Facility. The NRI borrower can take the advantage of this facility by paying a nominal charge.

Like the residential home loan, the home loan for NRI also includes 1.25% of the loan amount plus the taxes as processing charges.

Though the procedure is common for all financial institutions, but, every organization can have slight variations in their mode of operation. It is best for the borrower to learn the variations before-hand, so that when the individual applies for the loan, the process is streamlined.

4 Useful Facts about NRI Home Loans You Must Not Miss.

Many Indians do reside abroad, earning a good income. Some of the non-resident-Indians (NRIs) may want to invest in Indian real estate property or simply wish to purchase a second home for themselves for future use. One reason to buy a house in India than the abroad is the cost difference. The property in India may cost lower than one in NRI’s current place of residence.

Even then, the non-resident-Indian may find it difficult to pay off the complete cost of the house he/she wants to purchase in India. In such a circumstance, the person can apply for NRI home loans to make up for the lack of finances. Some people think that NRIs cannot purchase a house in India, but that is not true. A lot many banks and financial institutes are willing to lend to NRIs.

However, the regulations and criteria for NRI Home Loans could differ from resident home loans in some ways:

1. Documents Needed: Documentation involved are a copy of visa, passport, address proof, and employment related details- appointment letter, salary slips, contract of employment. Except visa and passport, most of these documents also have to be produced by an Indian resident for a home loan.
2. Eligibility Criteria: The eligibility criteria for minimum years of work experience in abroad and minimum age can vary from a lender to another. Few banks allow lending for NRI home loans only if the person has at least 2 years of work experience abroad, while in few cases even a year’s employment is accepted. Some lenders can have a requirement for a minimum monthly salary drawn as well.
3.  EMI & Interest Rate: The EMI and interest rate or other charges for NRI home loans maybe same as that for resident Indians seeking a housing loan. The loan tenure could extend till 20 to 30 years, but in some circumstances, lenders may restrict it to just 10 to 15 years.
4. Loan Repayment: For NRI loan, repayment amount is accepted only in Indian rupees and not in the currency of the country where the NRI is living at. Repayments has to be made by remittances from abroad via non-resident rupee (NRE), normal banking channels, or a non-resident ordinary rupee account (NRO).

The above-mentioned factors are some of the important ones for NRI Home Loans. However, before your NRI friend or you as a non-resident -Indian approach a bank or lender for a housing loan, you must research about possible charges included as per NRI lending rules based on regulatory or political charges.

{Source: http://blog.loanbaba.com/4-useful-facts-about-nri-home-loans-you-must-not-miss/}

NRI Home Loan In India.

With HDFC NRI Home Loan you can turn your dream home in India, into a reality. Get Attractive NRI Loans Interest Rates. Avail Home advisory services from HDFC!.

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Home Loans For NRIs.

With HDFC Home Loan for NRI you can turn your dream home in India, into a reality. Get Attractive NRI Loans Interest Rates. Avail Home advisory services from HDFC!.

Home Loan for NRI Update

The Non-Resident Indians (NRIs) are recognized under the Foreign Exchange Regulatory Act, 1973 and defined as someone who is "An Indian citizen who holds a valid documents like Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI."

Documents required for Resident Indians as well as for NRIs for getting Home Loans are different in some respect. Home loan for NRI are available for construction of new house / flats, purchase of old house / flat addition / alteration to an existing house and repairs / renovation etc. NRIs can avail of loans by mortgaging an existing residential property. However, for availing home loans, NRIs have to fulfill certain conditions according to provisions of the Income Tax Act. They should have stayed in India for a period of 182 days or more within an assessment year or they should have stayed in India for at least a total of one year or more.

The FDI Policy that permits FDI up to 100 percent from foreign/NRI investor under the automatic route has boosted NRI confidence. Banks have attractive NRI housing schemes to accommodate the housing needs of NRIs. From the stables of HFCs, NRI housing NRIs finance plans with suitable repayment options are available.

Last but not the least, NRIs should take due care while selecting their home loan provider companies or HFCs. Considering the geographical distances involved, it is significant that loan seekers associate with a proactive and responsive HFC.

The eligibility criteria of NRIs differ from Resident Indians based on a few parameters. The parameters include:

Age: The loan applicant has to be 21 years of age.

Qualification: The NRI loan seeker has to be a graduate.

Income: The loan applicant has to have a minimum monthly income of $ 2,000 (although, this criterion may differ across HFCs). The eligibility is also determined by the stability and continuity of your employment or business.

Payment options: The NRI also has to route his EMI (Equated Monthly Installments) cheques through his NRE/NRO account. He cannot make payments from another source say, his savings account in India.

Number of dependants: The eligibility of the applicant is also determined by the number of dependents, assets and liabilities.

An NRI applicant is eligible to get a home loan ranging from a minimum of ` 5 lakh to a maximum of ` 2 crore, based on the repayment capacity and the cost of the property, which although is variable by the priorities of the home loan provider. Also Home Loan Tenure for NRIs is different from Resident Indians. An applicant will be eligible for a maximum of 80 percent of the cost of the property or the cost of construction as applicable and 70 percent of the cost of land in case of purchase of land, based on the repayment capacity of the borrower.

However, a NRI can enhance his loan eligibility by applying for home loans with a co-applicant who has a separate source of income. Also, the rate of interest for home loan for NRI is higher than those offered to Resident Indians. The difference is to the extent of 0.25 percent-0.50 percent. Some HFCs also have an internally earmarked 'negative criterion' for NRI home loans. As such, the NRIs who hail from locations that are marked as being 'negative' in the books of HFCs, find it difficult to get a home loan.

The Reserve Bank of India (RBI) has clarified that Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO), purchasing immovable property in India should pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country.

The repayment option for NRIs as they can pay through the funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999, and the regulations made by the RBI from time to time. As most of the home loan provider companies consider the economical stability of the applicant, home loan for NRI are quite feasible, because they are well in economic resource.

The repayment option for Non-Resident Indians (NRIs) is done in EMIs, and includes interest and principal amount calculated on monthly rests. The borrower can pay EMIs by issuing post-dated cheques from your Non Resident External (NRE)/Non-Resident Ordinary (NRO) or Non Resident (Special) Rupee Account (NRSR) in India; or any other 43account approved by the Reserve Bank of India (RBI).

In the case of part-disbursement of the loan, 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. Pre-EMI is calculated at the same rate at which EMI is calculated.

The home loan tenure for Non-resident Indians differs from the Resident Indians on a few points, which may of course vary from one HFC to another. For most HFC the home loan tenure exceeds maximum from 25 to 30 years. However, for NRIs the maximum tenure is from 7 years up to 15 years. However, you cannot opt for a term that extends beyond your attaining retirement age or 60 years of age (whichever is earlier).

Tax benefits

NRIs cannot claim tax benefits on home loans in India as they have to pay tax in the nation where they work and earn. Moreover, you need to file tax returns to become eligible for home loans. However, if they pay tax in India for income earned in India, they can claim tax rebate for the home loan.

{Source: http://usefulone.blogspot.in/2012/09/home-loans-for-nri-update.html}

Easy Funding For Your Dream House In India

With HDFC NRI Home Loans you can turn your dream home in India, into a reality. Get Attractive NRI Loans Interest Rates. Avail Home advisory services from HDFC!.

Considering an NRI home loan? Bear These 5 Crucial Points In Mind

As a Non Resident Indian (NRI), you have migrated to a foreign country in search of better job prospects. Over the years, you may have earned enough to consider buying a home in your own country. Naturally your first step is to look for the appropriate NRI Loans in India. It is important to know and understand your eligibility, the kind of loan you may get and the repayment schedule involved. We will tell you all you need to know.

1. What Kind of Property Loans Can You Opt for?

As an NRI looking to invest in property in India, you can consider applying for a loan for the following kinds of homes:

•  A ready to move in property
•  Property under construction
• Property to be constructed on a plot of land already owned
• Upgrading a currently existing property

2. What Loan Amount Can You Look Forward to?

There are a couple of considerations based on which the loan amount provided is decided upon:

• The educational qualifications of the loan seeker. Being a graduate or higher in terms of qualifications will allow an NRI applicant to be eligible for a loan.
• The income of the NRI applicant. Here the Gross Monthly Income (GMI) is taken into consideration. In some cases, a comparison is made between the prospective Equated Monthly Installment (EMI) and the Net Monthly Income (NMI) of an individual.
• Most banks have a few additional criteria based on job profile, country of residence etc. these are factors that you will have to research based on your individual case.

3. Loan Tenure and Rate of Interest:

NRIs may avail a home loan only for a restricted period of 5 to 15 years. In comparison, an Indian resident may apply for a loan with tenure up to 30 year. Any extension is based on the discretion of the bank. The margin of interest is also higher for an NRI Loans and is usually around 0.25% to 0.50% more on the regular rates charged.

4. Documentation Requirements

The documentation for an NRI applicant is slightly different from that of a resident and may include the following:

• Copies of passport
• Valid work visa and permit
•  Employment contract
• Work experience certification
• Salary slips
• Bank statements of NRE or NRO accounts
• Applicant from the Middle East has to include employment card copies

Most banks have overseas branches in several countries and you are likely to find one close to you for submission of your documents. For a few other banks, you will even be able to make your submission online. You could also consider giving a local resident a Power of Attorney to help facilitate the process.

5. Loan Repayment

When you apply for a loan as an NRI, you will be able to repay it only from Non-Resident External (NRE) or Non-resident Ordinary (NRO) account. All repayment will have to be done in Indian currency.

During the course of repayment should your status change back to that of an Indian resident, the loan amount, tenure and interest rate will be reworked to fit your new status.

Though the process is relatively hassle-free, do note that every bank may have a few requirements that vary from the norm. It is advisable to chalk out things in advance, make essential enquiries and have the documents ready. It is best that you consult the bank that you plan to approach and have your documentation in place accordingly.

Summary

• An NRI may apply for a home loan in India based on certain criteria
• The tenure is lower than that provided to a resident and the rate of interest marginally higher
• The loan may be repaid only through a NRE/NRO account in Indian rupees
• Should the status of an NRI change to a resident, the loan will be reworked to match the new status

{Source: http://www.vakilhousing.com/considering-an-nri-home-loan-bear-these-5-crucial-points-in-mind}

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Know Home Loans Housing Loan Finance In India

Saving up for your dream home? Home Loans can make this dream a reality. Below are the FAQ’s before going in for a Home Loan.

What is a Home Loan?

Home Loan or funding in the project to the buyer is one of the most important factors for the sales of the property. 95% of the properties are bought on home loans, with the increase of all white transactions in Indian market some of the buyers are forced to take home loan as they don’t have sufficient money to pay the builder. Normally the loan provided in case of a residential property is maximum up to 75% of the property value and in case of commercial loan property it is around 60% of the property value. NRI’s are not eligible for commercial loans. The banks never finance 100% of the property value as they want to keep margin money as a security in case there is a default from the buyer of the property or if the market crashes and the existing vale of the property goes down.

What are the different types?

Through a Home Loan, one can purchase or construct a new house/ apartment; a Home Improvement loan is offered to those who wish to renovate their houses; a Home Extension loan is for consumers planning to add extra space to their house such as a new room or a new wing; a Loan against Property is offered for a individuals seeking loan against an already existing property; a Land Purchase Loan is provided to consumers buying land as an investment, maybe to build a house later on and a Balance transfer loan is basically a home loan to pay off an existing housing loan for nri as this enables you to avail a loan with a lower interest rate.

What is the typical repayment duration?

Home loans are given for a minimum period of 1 year and maximum period of 30 years; the tenure of loan depends upon the age of the individual. The maximum age for taking a loan is 65 years i.e. if someone is 55 years old then he or she can take a loan with tenure of maximum 10 years. If somebody wants to increase the tenure he has to make a co-applicant (Family member) with a younger age.

What are the types of interest rates?

The Rate of Interest on housing loan for nri depend on repo rate, reverse repo rate & CRR (Cash Reserve Ratio), all the three are governed by RBI, changes in any of the three leads to the change in PLR (Prime Lending Rate) which leads to the change in rate of interest. PLR is normally reset in every three months.

Rate of interest are of three types –

Fixed rate of Interest - which means that the rate of interest is fixed for entire tenure and is not affected by the change in PLR.

Floating Rate of Interest – which means the rates of interest varies with the market condition and changes with the change in PLR.

Fix Loty(Partly fixed & Partly Floating) Rate of Interest: - which means that the rate of interest is fixed initially for the first 2 to 3 years and then gets converted to floating rate of interest.

What are the tax benefits on Home Loan?

There are certain tax benefits available on your Home Loan. The Interest paid on housing loan for nri is eligible for an exemption for income tax purpose, the maximum exemption allowed in a financial year is 150,000/-, however no exemption is

allowed to the person in case of a under construction property. The buyer can claim the exemption after the completion of the property equally in the next 5 years after completion. For example the possession of the property happens in 3 years and you took the loan in 1st year and paid interest of 25,000 in the first year, 35000 in the second year and 40,000 in the third year, the total interest paid by you in three years before completion will be 100,000. Now you can claim it equally in the next five years i.e. 20,000 each, in the fourth year if you pay an interest of 60,000 then you can claim an exemption of 80,000 (60,000+20000), the maximum exemption cannot exceed Rs.150,000 in a financial year.

NRI’s don’t get any income tax benefit for the interest paid on home loan.

Process of Sanctioning and disbursal of Home Loan

Sanctioning of Loan: - A buyer depending upon his classification i.e. salaried, self-employed, NRI needs to deposit all the documents required with the respective bank from which he needs to take the loan. Bank does its legal formalities and takes around 7-10 working days for the sanctioning of the loan if the buyer is found eligible; if the loan is not sanctioned then all the documents are returned to the buyer.

Disbursement of Loan: - Bank normally takes around 7-10 working days for the disbursal of the loan once it is sanctioned. The following documents are required by the bank for disbursing the loan: -

Original documents of the property – Builder Buyer Agreement, Allotment Letter & original payment receipts.

Lien mark Letter: - It is a request letter by the buyer of the property to the builder of the property allowing taking a loan.

Permission to Mortgage: - This document is required by the bank from the builder that the builder has no objection in allowing the buyer to take a loan on the said property.

No Objection Certificate (NOC): - In many cases a builder takes a loan for a bank for the complete project i.e. the entire project is mortgaged with some bank by the builder. In this case if a buyer wants a loan then a NOC is required from the first bank by the second bank.

Indemnity Bond: - This is normally required by the bank in case of down payment cases, it says that the bank will not be responsible if something goes wrong with the project in future for example if the project is scrapped then the bank has full right to recover the loan from the buyer of the property.

Tripartite Agreement: - It’s an agreement made between the builder, bank & the buyer mentioning the terms and condition of the purchase.

Documents required by the Buyer of the property For Approval of housing loan for nri (NRI’s)

Only NRI (Non Resident Indian), PIO (Person of Indian origin) and OCI (Overseas Citizen of India) can take home loan in India

Employment Contract

Latest work permit

Visa stamped on passport

Salary slips for past 6 months

Overseas Bank Statement for past 6 months

NRE/NRO Bank Statement for past 6 months

ID card by employer

Official Email Id

Credit Bureau Report

Company Profile

Continuous Discharge Certificate (in Merchant Navy cases)

Power of Attorney as per Bank’s format, it’s mandatory for a NRI’s to give his Power of Attorney to any of its family member or friends for availing housing loan for nri.

Important Points Relating to home loan

Co-applicants can be only in blood relation, the idea is clubbing the income of the applicant and co-applicant so as to facilitate them to get a higher loan amount, however, combinations of father – daughter & brother – sister are not allowed but combination of husband & wife is allowed.

A buyer can avail only three home loans at one time.

NRI’s don’t get any income tax benefit for the interest paid on home loan.

NRI’s, PIO, OCI living in some particular countries are barred from taking housing loan for nri for example NRI/PIO/OCI of Pakistan, Bhutan, Bangladesh, Afghanistan, Sri Lanka etc. are barred from home loans in India

Self-employed NRI’s don’t get home loans for buying Indian Property.

Funding of a project from nationalized banks normally starts at the advanced stage of the project.

{Source: http://www.1stkeys.com/blog/27/know-home-loans-housing-loan-finance-in-india.htm}