If you are a Non-Resident Indian and looking to buy a home in India, you must choose a quality home loan. Even if you are living outside India, the dream of having a home in the country will always be there.
In this blog, we will talk about some special home loans made for NRIs. Some interesting facts about these loans, benefits we can expect, and more. Consult with a DSA partner who can help you learn about possible loan options and choose the best one among them.
Special Home Loans for NRI People
As an NRI, you might face some serious challenges while buying a property. Here are some of the possible issues you might face-
- Already you are living abroad so the physical distance will surely create a major problem when you are looking for a property to buy here.
- There are some specific rules of RBI regarding foreign exchange. Learn about those regulations and then plan your next moves.
- A person having a loan in India must have a steady income source in India. Without that, it might be difficult to have a loan here.
- Currency value might fluctuate, and it can create trouble in financial management.
Interesting Facts About NRI Home Loans
Once we are familiar with the possible issues that we have to tackle, it is time to understand about specific NRI home loans available in India. Before getting a home loan, you need to learn about a few interesting aspects of these loans-
- Most lending companies will check your present income to see whether to sanction your loan or not.
- Depending on your property value, the loan amount will be decided. In general, you can get up to 80-85% of the net value of the property.
- Not all but a few banks and loan companies are there that allow repayment in foreign currency. If this is possible, then you don’t have to face any trouble regarding currency exchange.
- If you have someone in this country who can look after your loan matters, you can give them a power of attorney. That person will meet the bank and negotiate if necessary.
- As an NRI, you have the opportunity to claim tax benefits as per section 80C and section 24 of the Tax Act India.
Having this basic knowledge will help you plan your loan matters, look for perfect options, and then find the loan you feel comfortable about.
Benefits We Can Expect from NRI Home Loans
We have already discussed a few important and interesting aspects of NRI home loans in India. Now, we will talk about some of the benefits you can have from NRI home loans-
- Now, most banks and financial institutions offer easy loan options for NRI people. The service has become hassle-free in today’s time.
- As many banks and loan companies are offering NRI loan options, the market has become competitive. Learn about different loan options, check their interest rates, and find the best one that you feel is affordable.
- It is important to choose a tenure you feel is right. Now, people can extend the loan tenure up to 30 years. Remember, having a long tenure will reduce the EMI amount, but it will increase the overall interest amount quite a bit.
- These home loans are applicable for any kind of property like residential, commercial or others.
- According to many, India is a booming market and will be the same for the next few decades. At this time, you should invest and get the benefits of property appreciation.
- Having a home in your own country is always fulfilling. Don’t forget to check an app for DSA to get help in loan matters.
How to Secure These Home Loans?
We are almost done discussing home loans for NRI people. Finally, we will give you some tips that will help you in this hectic process-
- Choosing the right lending company is the key to success. Focus on the rate of interest, additional fees, and more before taking the final call.
- When you have a high credit score, it will be easy for you to have a loan.
- Try not to make a mistake in your documentation.
You have enough information about NRI home loans and getting the best of the benefits we have just shared. Consult with an expert to learn more.
