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How To Choose The Best Nri Home Loan?

By Author: Aishwarya Mahurkar
Total Articles: 291

Purchasing a house in India for NRIs can prove to be difficult. The constant rise in real estate prices has made it difficult for an NRI to afford a house in India without borrowing. It is for this very reason that a number of financial institutions provide NRI home loan options for their customers. Here are a few tips every NRI must follow to ensure that they get the best NRI home loan options:

Application process

The application for such a loan proves to be lengthier than for a resident who applies for a home loan. Since the individual does not live in the country there are a number of extra documents the bank will require when considering a NRI home loan application. Some documents one may have to provide are an overseas bank statement for the last 6 months, power of attorney, copy of employment contract, etc. When an NRI is looking at different financial institutions, the one thing that must be considered is that the application process is quick and efficient.

Interest rate

The interest rate charged on NRI home loans tend to be higher than those charged on home loans for residents. The reason why financial institutions charge a slightly higher interest on an NRI home loan is that it poses a higher level of risk. Hence for an individual to get the best loan, they must conduct research to ensure that the financial institution they choose to apply for a home loan will provide the best home loan at affordable rates . If the NRI has a high credit score, this can help him negotiate better to get a lower interest rate on his home loan.

Tenure of the loan

Most financial institutions allow a maximum tenure of 20 years on an NRI home loan to individuals. The longer tenure must be taken advantage of by the NRI home loan applicant. A longer tenure means that the total EMI one is required to pay each month will be lower. This allows one to enjoy their lifestyle abroad and still afford the home loan they have applied for.

The one thing that an NRI must do when planning to apply for an NRI home loan in India is open either an NRE or an NRO account. Most financial institutions only provide loans to individuals holding such accounts. The reason being it allows for a smoother repayment process for the individual. As long as one has a decent credit score and earns a consistent salary, getting a good NRI home loan is easy.

Author Bio :

The author is a seasonal writer on topics of finance and the home loan at affordable rates sector. Through her writing, she articulates aspects that are important to people availing facility such as NRI home loan, home loan eligibility criteria that help to make the best decision.

Total Views: 77Word Count: 472See All articles From Author

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