A Checklist For Nris Who Looking For Home Loans

June 08, 2020 Lokesh kumar 0 Comments


Introduction
For every Indian living in India or abroad, home is a dream that often prompts them to work hard. After all, what is life without a shelter of your own? 
However, with every passing day, the cost of real estate is going northwards. The only thing that can save your wallet from the ill-effects of sky-high prices is a home or a housing loan.
This article is your one-stop guide to everything you want to know about the housing loan and how a house loan calculator can show you the best rates and terms.

What is Special About NRI Housing Loan?
An NRI housing loan caters exclusively to non-resident Indians living abroad or currently on a trip to India. If you are an NRI, you can get several benefits like low-cost EMI, flexible repayment terms, high loan to value, attractive floating rates of interest, and easy approval. A house loan calculator gives you the latest quotes by factoring in the latest government rules and regulations.
What is the Eligibility Criteria for NRI Housing Loan?
The eligibility criteria of an NRI housing loan is simple and easy. Satisfy the following criteria, and you are good to apply for a housing loan.
1.      You must be an Indian citizen with an Indian passport
2.      Your status should be NRI, and you should be on deputation, employment, or assignment
3.      You must possess working experience of at least one year in a foreign country. However, this rule does not apply for employees on deputation
4.      Your age should not cross 70 on the year of loan maturity
What Documents Do You Need to Submit to Avail a Housing Loan?
To avail a housing loan, you need to keep the following documents in order.
1.      Filled-in application form and photograph
2.      Age, identity, and residence proof
3.      Latest degree certification
4.      Copy of passport, PIO card, and work permit
5.      3 months' salary slips
6.      Current appointment letter
7.      2 years' income statement
8.      6 months' salary account statement
9.      Property documents
10.  Cost estimate of the property under construction
11.  Processing fee cheque
What is the Rate of Interest for a Housing Loan?
Housing loan interest rates are of two types - fixed and floating. If you opt for a fixed rate of interest, your EMI will remain the same throughout the repayment period. If, however, you choose a floating rate of interest, your EMI will change depending on changes in prevailing market rates.
The current year is the best for housing loan buyers, as the interest rates are near their multi-year lows. If you are salaried, you can expect the interest rates between 9.25% and 11%. Compare this with the interest rate of a borrower who got the loan disbursed before 1st March 2017, and you would find the borrower is paying 14.87% p.a.
Do You Need to Make a Downpayment?
Any NRI needs to make a downpayment of 20% of the property cost. This includes the registration charges and stamp duty in case of fresh property purchase, a cost estimate in case of new construction or renovation of the existing property.
While 20% is the bare essential, you may choose to upgrade the down payment, as a higher down payment would lower down your EMIs and reduce your repayment tenure. Paying off loans earlier is beneficial for you, as it can improve your credit score and makes you eligible to apply for another loan.
Conclusion
A housing loan can fulfil your dreams here while you toil hard abroad. Check the terms and conditions before choosing a lender.

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