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.
