MANOJa

NRIs too can avail home loans for purchase of residential property. They can purchase a house and can even take loan for self-construction on a plot and also for renovation/improvement of an existing residential property in India.
Like resident Indians, NRIs can avail up to 80-85 per cent of the cost of residential property as a home loan. However, the down payment should be directly remitted from abroad through normal banking channels or from non-resident external (NRE) account and/or non-resident (ordinary) (NRO) account in India. EMI payments too should be remitted from any of these accounts.

In the case of NRIs, however, there is a stress on certain pre-requisites such as qualifications, current job profile, past experience, probability of continuing abroad for the loan tenure and probability of servicing the loan with an extended tenure in case of return to India. The Loan-To-Value (LTV) ratio for NRI customers varies from one bank to another, though the manner of calculation is the same in case of a regular home loan.
The income taken into account for calculating the home loan eligibility is the repatriable income plus any income in India. For NRIs working in countries that restrict repatriation such as African countries, only the repatriable portion of the income is considered for calculating loan eligibility.

Though the regular home loan tenures can be up to 25 years, loan tenure for NRIs is normally 10-15 years. Along with the standard documents required for a home loan, NRIs need some additional documents such as the appointment letter and contract, labour card (if employed in the Middle East), salary certificate, bank statements and income tax returns filed in the country of residence.

Loan eligibility can be enhanced by taking a joint loan with relatives. However, for certain reasons banks allow only a select list of relatives to be joint owners of the property.
It is important that NRI provides General Power of Attorney (POA) in favour of a trustworthy relative as per the draft of the Bank which should be duly attested by the Indian consulate in the country of residence. In case the loan borrower is in India, the POA can be locally notarised. Most banks require the POA to ease the process of dealing with the NRI borrower. The POA holder only gets the powers that you give and does not have the power of dealing with the property.

Like resident Indians there are certain tax benefits too for NRIs on interest payments which can be useful if they have any taxable income in India.


NRIs too can avail home loans

Designer

I couldn't get it, what's new about this news, before also NRIs were taking housing loan.

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It is better to be blind than to see things from only one point of view

gharondabhai

That means this news is not for you ... you will be surprised to see so many clue less people all around. Don't believe me? Just look at the loan section and you will realise. People want spoon feeding!! They don't bother to even pick up the phone as if their phone is dedicated to their GF.

stinaikar

While taking loans, I hope people also educate themselves about the repatriation laws. Apparently, if you take a bank loan (i.e. pay for the property in rupee funds), you cannot repatriate any sale proceeds for 10 years. Correct me if I am wrong.

Magadh_Pride

Is there a way to get loan abroad to buy a house in India....

In light of the mortgage validation and credit verifications, its probably very difficult and Sounds silly to ask

Still looking to find any way to use the cheap credit available for transfering for Investments in india....

stinaikar

Almost impossible. Even if you live abroad, it is hard to get a bank loan in that country to buy property in India. Its too risky for them.

dheerajg77

I have taken personal loan here for property in India. It's possible

stinaikar

But you pay 10-11% interest. he is looking for cheaper loans at 4-5% abroad

dheerajg77

No, I am paying 7 percent from credit uinon

stinaikar

Credit Union is in the US right? I think magadh is in India and he is looking for loans from American or European banks for buying property in India.