A Home Loan For An Nri

By Author: Vijay K Shetty
Total Articles: 2542
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An Indian citizen with the passport and valid important document who stays abroad for job purposes or any business matter or even for vacation and stays abroad under certain circumstances be it for a long time, may be called an NRI (Non-Resident Indian).The NRI are recognized through the Foreign Exchange Regulatory Act 1973. The RBI's instructions and rules which every bank and housing finance companies must follow defines guidelines to an NRI.

The Non-Resident Indians, who qualify to get the NRI housing loans, are:

The government service officials who are posted abroad on a duty with the Indian admonitory or for some missions and similar other agencies for different types of set up abroad by the Government of India, where the officials draw their salaries out of Government resources, and even who stay abroad for employment or for business purposes or even for some vacation or tour outside India or for any other purpose under circumstances also is showing and indefinite period of stay abroad.

The government servants staying abroad on assignments with foreign governments or regional/international agencies ...
... like the International Monetary Fund (IMF), World Bank, World Health Organization (WHO), Economic and Social Commission for Asia and the Pacific (ESCAP), the officials of State government and public sector undertakings deputed abroad on temporary assignments or posted to their branches or offices outside of India. Therefore both Resident Indians as well as NRIs need some important documents to get a Home Loan. Home loans available for NRIs is for building a new house or flats, purchase of old house or flat addition / alteration to an existing house and repairs or even renovation etc. Through the mortgage of an existing residential property as well an NRI can take loans. Anyhow, for getting the home loans, an NRI has to fulfill some conditions according to the loan guidelines from the bank as is provision of the Income Tax Act. They should have stayed 182 days or more within an assessment year in India or they should have stayed in India for at least a total of one year.

The following points are to be checked for sanction of home loans for an NRI:

Eligibility
RBI directive for NRI home loans
Repayment options
Home loan tenure
Tax benefits
Documentation

There is some policy from FDI that permits up to 100% from foreign; the automatic route has increased NRI confidence under NRI investor. Banks have different types of catching and attractive housing loan schemes to offer to accommodate your housing needs, even some of the housing financers offer suitable repayment options. NRIs should be careful to choose their home loan provider companies and banks along with their guidelines and rule descriptions.

Vijay K Shetty, Platinum Level Author.
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