You may have lived abroad for many years but you still want to acquire a home in your country of residence.
However, if you do not have adequate funds to make the purchase, you may opt for a loan. Several Non-Banking Financial Companies (NBFCs) and banks offer home loans, thereby enabling you to own your dream home easily.
Here are three features of Non-Resident Indian (NRI) housing loans.
- Higher loan amount
NRIs may be eligible to avail of a higher loan amount. You may choose from a minimum of INR 10 lakh to a maximum amount of INR 10 crores. The loan amount eligibility primarily depends on your income and existing debt obligations, if any.
- Customized solutions
Financial institutions across the country provide customized loans as per your personal requirements. Experienced and trained professionals ensure they understand your financial situation and provide a solution that best suits your needs.
- Quick processing
When you opt for online home loans, the entire procedure is completed within a short period of time. Contrary to common perception, you do not have to submit several documents when you apply for such loans. This ensures you receive loan approval quickly without any hassles.
Here are four benefits of NRI home loans.
- Affordable interest rates
Loans are available at competitive rates of interest, which makes it convenient for you to repay the borrowed amount. Furthermore, lenders levy a small processing fee and legal charges to process and sanction your loan application. You may also opt for a floating interest rate in order to lower your repayment amount when the market interest rate decreases.
- Flexible repayment schedule
You may choose repayment tenure from one year up to ten years as per your financial situation. Additionally, some financial institutions offer an accelerated repayment schedule. Under this option, you may increase the Equated Monthly Installment (EMI) each year to reflect the rise in your annual earnings. This helps to reduce the total loan tenure and repayment amount.
- Availability of finance for various purposes
You may use the borrowed amount to purchase a ready possession flat or apartment. Alternatively, you may use the money to buy a plot of land and construct the home. The loan may also be utilized to buy an under-construction property. Lenders also allow you to finance home renovation or extension projects with the NRI home loan.
- Completion of formalities through POA
It may not be possible for you to visit India to complete the loan procedure. After making an online home loan application, you may appoint any relative as your Power of Attorney (POA). The person is then authorized to complete all the formalities related to your loan application.
Purchasing a home with an NRI loan is a quick and hassle-free procedure. However, reviewing the terms and conditions of the loan before signing on the dotted line is important to avoid inconveniences in the long run.