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!