There is a growing level of interest among the NRIs in the Indian real estate sector. NRIs are interested in acquisition of property either for future occupation, rental income or for pure investment. To make such an investment, various banks and financial institutions in India offers NRI home loans in India.
A NRI has options of fixed rate and floating rate interest home loans. In a fixed rate scheme the rate of interest associated with the loan is fixed, i.e., a borrower cannot take advantage of a reduction in interest rates in future. And, if they wish to change over to the floating rate scheme, they will be levied some extra charges. On the other hand, in a floating rate scheme, the monthly repayment amount changes according to the fluctuation of rate of interest in the market.
Non-resident Indians can avail of NRI Home Loans India for purchase, construction or extension of a dwelling unit anywhere in India. The maximum amount of the NRI home loans is Rs. 1 crore, or can go up to 85 per cent of the cost of the dwelling unit whichever is lower. Borrowers may avail the benefits of the NRI home loans in India for a period maximum of 10 years. The minimum income norms associated with such loans depend on the country where the applicant is residing and also upon the tenure of the NRI home loans India.
Borrowers of NRI home loans India may repay the loan in EMIs (Equated Monthly Installments), which includes principal and interest. This form of repayment starts from the month following the loan disbursement month. EMI is payable every month, on or before the due date. If a borrower is unable to repay the due amount the property may be repossessed.
For enabling a NRI purchase home in India, every financial institute or bank in India has provision of NRI home loans India. A NRI may apply for such home loans in India by visiting the particular branches or may apply online. However, advent of internet and telecommunication has revolutionized the process of loan application to a greater extent. In it, an applicant just need to fill up a simple application form and within a few clicks the application for the loan is submitted.
With a number of financial institutions and banks offering NRI home loans in India, it will be advantageous on the part of the borrower to compare the interest rates and other charges applicable with this loan. Only after considering each and every facet of such loans, a borrower should apply and avail NRI home loans in India. Since a home loan also risks of repossession of the home if repayment is not made in time, a would-be borrower should calculate properly whether he or she could repay the borrowed sum.
By : Meghna Arora
