Buy home in India - Take loan in UK - NRI loans
Get a NRI loan to buy property back in India
People living in UK can take a NRI home loan to buy flat, plots, house or do construction back in India.
Although the loan rates do not differ much than the rates available to others living in India, they are sanctioned for much shorter period of time. NRI can only receive 85% percent of of the property price. Also the maximum loan amount depend on the income of applicant and capability to repay on time. Normally a NRI can get the loan amount equal to 36 times his monthly gross income.
According to the RBI guidelines, "An Indian citizen who holds a valid Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI."
The benefit of getting getting a loan sanctioned in UK or US is that you will get more amount as compared to what you get in India. For example in my case I could get more amount sanctioned in UK as compared to what I was getting in India. So if you have been transferred or sent on deputation to UK for a short duration like a year or two, you can get your loan sanctioned in UK which will fetch you more loan amount. However you should always consider you capability of paying back the monthly instalment even when you go back to India. For more information about how much mortgage you should plan please refer to my other hub - How much mortgage should you take for buying home.
Generally the interest rate for NRI loans varies from 7.5 % to 8.5% for 5 year loan term to 20 year loan term. Per Rs 1 lac, approx EMI comes out to be Rs 2004 to Rs 850.
You may need to provide additional document as you are a NRI and living far from your bought property. Some of these document are:
- Copy of your passport and Visa document
- Encumbrance Certificate for the last 13 years.
- Property agreement /sale document
- Approved plan
- 6 month salary slip
- Your NRE/NRO account details
- Tax details
- Appointment letter details
- 6 month bank statements
Its better to a NRE or NRO account before you apply for NRI home loan. You can also use those account to pay your monthly installment.
You can also appoint some to do the deal for you by providing power of attorney. Normally you should only appoint your close family members like your father or brother.
Hope this hub has helped you chase you your dream home.
Please use the comment section below to provide any suggestions or comments....
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