Home loan options for NRIs
Many organized banks and HFCs, offers home loans to NRIs and PIOs taking into account their expectations and choice on the type of loan they require. This is good news for NRIs and PIOs who would like to invest their hard earned money back in their home country. A significant number of financial institutions have designed various home loan schemes to ease the norms and bring to reality, the NRI dream homes. Banks and other corporates are waking up to meet the demands of the NRIs, who look for the best service provider to fulfill their cherished dream. With the realty sector booming rapidly and investors growing more knowledgeable in the field of investments, banks and financial companies are competing to extend the most viable home loan options to the their customers.
SBI offers home loans to NRIs employed abroad for atleast two years, with a valid work permit and passport. NRIs with the minimum age of 21 years having minimum net monthly income (NMI) of US$ 500 or minimum Net Annual Income (NAI) of US$ 6000/- can avail the home loan.
It offers a minimum loan amount of Rs 3 lakhs and the maximum loan eligibility based on, 48 times NMI/4 times NAI for applicants below 45 years of age and 36 times NMI/3 times NAI for applicants above 45 years of age. Maximum loan amount for repairs and renovation, purchase of plot for construction, purchase of furnishings and consumer durables amounts to Rs 10 lakh, 20 lakh and 3 lakhs respectively. Maximum repayment period for the loan amount varies as 20 years for borrowers aged upto 45 years and 15 years for borrowers aged 45 and above. SBI offers innovative home loans, which include Maxgain home loan, Flexi home loan, Realty home loan, freedom home loan to lure the NRIs investment. Interest is applied on daily diminishing balance basis and interest rates remain the same as granted to the residents. Repayment can be made by way of EMI.
Country’s second largest lender, ICICI bank grants home loan facility to any NRI having minimum qualification of graduate with minimum 3 years of employment abroad and professional qualification with one year of employment abroad.
Loan against residential property is 85 per cent of the cost of the property, upto 15 years for salaried and 10 years for self-employed, loan against purchase of land and against existing residential property is 75 per cent of the total cost of the property subject to the maximum of INR 50 lakhs, upto 10 years for both salaried and self-employed while it is 60 per cent of the total cost of property upto 15 and 10 years for salaried and self-employed.
Maximum and minimum loan amount it offers is Rs 1 crore and Rs 5 lakh respectively and minimum loan against property is Rs 10 lakh.
HDFC, bearing 25 years of experience in lending home loans have devised a complete package for NRIs. For home loan and home improvement loan, it finances upto 85 per cent maximum of the cost of the property and 70 per cent for land purchase loan. Flexible repayment options are made available with the investor choosing either the fixed or floating interest rates based on their loan structure.
Home loans can be repaid by way of EMI, directly from the bank savings account, by giving a standing instruction to the banker. The Bank also looks into ‘In-house scrutiny of Property documents,’ to ensure safety of investment. It grants customer privilege loan to an existing customer with lower interest rates.
IDBI extends world class banking to NRIs with exclusive offers. Some of the products like Non-resident rupee checking account, Non-resident rupee term deposits and Foreign currency Non-resident deposit offer more value added services to its customers.
Non-resident External Account Features
-Repatriable account for your investment needs
-Access your account anytime, anywhere with Internet Banking
-Shop at more than 8.3 million locations and withdraw funds in 140 countries
Non-resident ordinary Account Features
-An account for your local income and expenses
-Access your account at more than 250 ATMs across the country
-Pay your bills in India from anywhere in the world
-Foreign Currency Non-resident Account
-Retain your funds in foreign currency
-No exchange risk
-Earn attractive returns on your funds
NRIs can avail bank’s advanced funds transfer facility, where the funds can be transferred to his or her family member’s account. International debit card, free nomination and mandate facility provided by the bank enables the customer and his family to process a smooth banking operation.
International debit card, free nomination and mandate facility provided by the bank enables the customer and his family to process an hassle free banking operation.
Bank of Baroda offers housing loans to NRIs holding Indian passport and employed abroad for atleast 2 years and whose minimum gross annual income is Rs 10 lakh. The minimum loan amount the bank renders for purchase of new or old house, flat or construction of house is Rs 5 lakh and for repair, renovation and extension, Rs. 1 lakh with a maximum repayment period of 10 years. The loan margin for purchase or construction of a new or old building/apartment or purchase of a plot will be 20 percent and for repair and renovation it will be 25 per cent.
The rate of interest for loans upto 5 years is 8.50 per cent p.a (fluctuation rate) and 9.50 per cent p.a (fixed rate), loan over 5 years and upto 10 years is 8.75 per cent p.a (Fluctuation rate) and 9.75 per cent p.a (Fixed rate).
There are currently over 25 million NRIs, living in 125 countries and with the count increasing banks are consistently introducing new schemes to have a banking relationship with this particular population.