NRI’s can now opt loans for dream project in India

As an Indian while staying abroad, we all aspire to own a dream home in our homeland. Either you plan to shift back home in India, once your dream project is completed or you may opt to come back to your motherland once retired from work life. But the dream is always cherished in our hearts. In prior days, people used to work extra hard to accumulate the requisite amount to purchase any residential property in India. But, thanks to the ever emerging and modernized policies lead by Government and private sector banks and financial companies that you can now apply for NRI loans and get money to finance long awaiting dream of own house in India.

According to the definition of the Foreign Exchange Management Act, 1999 (FEMA), an NRI (non resident Indian) is the one who resides outside India for “employment, carrying on business or vacation in circumstances as would indicate an intention to stay outside India for an indefinite period.  Those Indians who stay less than 182 days during the preceding financial year will be considered as NRIs.

NRI citizens can now avail  NRI loans for the purchase of property ready for possession or under construction, construction of a property on an owned plot or for home improvement or extension, purchase of plot and home furnishings & consumer durables to the existing property. Buying of plot also comes under home loan application except agricultural lands. You can only opt for one property at a time.

There are some leading banks in India who offer interest rates as low as 9.45 %  to 9.90  on a floating basis with a processing fee of 1.25% or 11,500/-which is the maximum. You can qualify for a loan amount of around minimum Rs 5 lakhs to 10 crores. The repayment tenure will range from 10 to 15 years. In certain professional cases it may go up to 20 years.

NRI home loan to purchase dream home has been one of the best ways to secure your land purchase in India. Although, the procedure to avail loan remains more or less same like resident India, however, there are few rules that can alter at some stage of loan application.

Apart from relevant document for applying home loan some additional important documents for NRI home loan would be: Copies of the passport, work permit and valid visa, contract of employment, salary certificate, work experience certificate and bank statements of NRE/NRO accounts. Your salary certificate has to be attested from the embassy if the salary is not credited to a bank. For those residing in the Middle East, a copy of the employment card is also required.

The income and education qualification of an NRI citizen also play vital role in deciding the loan amount you get qualified for. NRI’s need to complete pre-requisites for  the loan sanction like 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.

NRI also needs to provide General Power of Attorney (POA) in favour of a local relative as per the draft of the bank which should be duly attested by the Indian consulate in the country of his or her residence. If the borrower is in India, POA could be locally notarized. Banks demand for POA to ease the process of dealing with NRI borrowers. Banks sanction up to 80% of the NRI loans amount that includes your registration and stamp duty charge. It is advisable, before approaching a bank you should be well prepared upto 15 to 20 % of the remaining amount for applying loans.