Q1.: For what kinds of property is a NRI eligible for
Home loans?
Q2.: What is the eligibility for obtaining NRI Home
Loans?
Q3.: What is the repayment period for a NRI Home Loan?
Q4.: How is the mode of payment for NRI home loans?
Q5.: What are the Tax Benefits applicable to Non-Resident
Indians?
Q6.: What are the documents required for obtaining
NRI Home Loans?
Q1.: For what kinds of property is a NRI eligible for
Home loans?
Ans.: A home loan is sanctioned to the NRIs for any of the following housing
finance schemes:
| a) |
To purchase
a house either ready-built, under construction
or from a second owner.
|
| b) |
For self-construction of a property on a plot of
land. |
| c) |
To finance the purchase
of a plot of land allotted by a society / development
authority. |
| d) |
For renovation or improvement of an existing property
in India. |
Q2.: What is the eligibility for obtaining NRI Home
Loans?
Ans.: Your eligibility is calculated in the same way
as it is calculated for resident Indians. More emphasis
is laid on the following criteria in the appraisal of a
NRI case:
| a) |
Qualifications - the NRI applicant has to be graduate |
| b) |
Current job profile & Past experience |
| c) |
Probability of continuing abroad for the loan tenure |
| d) |
Probability of servicing the loan with an extended
tenure in case you have to return to India. |
Q3.: What is the repayment period for a NRI Home Loan?
Ans.: The housing finance offered to NRIs normally do
not exceed 5 years. However, some HFCs offer loans for a
term of 7 years. The repayment for the loan is by way of
EMIs. The EMIs begin only after the entire loan is disbursed.
In case of a part disbursement, you pay simple interest
at the rate applicable on the loan amount that is disbursed
to you.
Q4.: How is the mode of payment for NRI home loans?
Ans.: The loan towards the house has to be paid upfront
for the entire tenure of the loan by way of direct remittances
from abroad through normal banking channels or from such
accounts as may be permitted by RBI from time to time. As
of today, the payments are done through NRO, NRE, NRNR and
FCNR accounts. These accounts change on the basis of RBI
permissions to each HFC.
Q5.: What are the Tax Benefits applicable to Non-Resident
Indians?
Ans.: No tax benefits are available for NRI customers
unless you file returns and thereby become eligible to avail
of the tax benefits as mentioned under Home Loans.
Q6.: What are the documents required for obtaining
NRI Home Loans?
Ans.: NRIs are required to submit additional documents
than is normally required for a resident Indian.
| a) |
A copy of the passport |
| b) |
A copy of the works contract (also sometimes referred
to as the contract card/labor card) |
| c) |
The power of attorney (POA). The POA is required
because the borrower is not based in India and in
such a scenario; the HFC would need a representative
'in lieu of' the NRI to deal with as required. Although
not mandatory, the POA is usually drawn on the NRI's
parents, wife or children |
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