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!.
Saturday, 25 March 2017
Tuesday, 14 March 2017
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.
Thursday, 9 March 2017
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!.
Friday, 3 March 2017
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
Wednesday, 1 March 2017
15 Significant Trends that will define Real Estate
With HDFC NRI Home Loan you can turn your dream home in India, into a reality. Get Attractive NRI Interest Rates. Avail Home advisory services from HDFC!.
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