Here, we discuss how NRIs can take home loan in India
Or, how NRIs can take housing loan in India
We discuss key features and aspects of NRI home loans
With this presentation, we are re-visiting this topic of NRI home loans
You can be a sole applicant or have joint applicant
Joint owners have to be joint applicants too
You can be the sole applicant or also have a person with power of attorney along
Check out our various discussions on Power of Attorney for NRIs
You can get a home loan for a new property, resale property or a property under construction
For a property under construction, you can pay only interest till you get possession
You can also take the loan in tranches and repay principal along with interest in your EMIs
For a ready to move in property, the EMI starts the moment you get possession
75-90% of the property value could be offered as a home loan
You could opt for a fixed rate home loan or a floating rate home loan
Home loan repayment through home loan EMIs needs to be done through an NRE or NRO account
You are likely to be charged a processing fee which is likely to be 0.5-1.25% of the home loan amount
Processing fees are negotiable and you could end up spending Rs 3,000-4,000 or higher
After loan disbursement, you will likely need to pay for property insurance and CERSAI fee
You get annual tax deduction of upto Rs 1.5 lakh for principal repayment under Section 80C
There is tax deduction for home interest loan interest payment of upto Rs 2 lakh every year under Section 24
You can claim unlimited tax deduction for home loan interest if the property is let out
Home loan is available during age of 21-65 years
Home loan is available for tenures of 15-30 years
Home loan can often be offered at a higher interest rate if provider sees a higher risk from the borrower
You will be need to provide proof of identity, residence and income
This means providing documents like Aadhar, PAN, OCI card, passport and visa
For income proof, 3-6 months of bank statements for the employed
For self-employed, company financial statements for a certain period of time will be needed
You need to typically be employed for a year and self-employed for 3 years
Home loan providers typically have ranges of loan amounts like 36-40 times of gross monthly income
You also need to provide property related documents like allotment letter, chain of ownership, agreement to sell
Besides there could be other documents like encumbrance report and power of attorney