Under What Conditions Do NRIs Get A Home Loan In India?

1. Home>Blogs> Under what conditions do NRIs get a home loan in India? Under What Conditions Do NRIs Get A Home Loan In India? Mar 2018 InGreen Homes The non-resident Indians have always shown some deep interest in the Indian real estate market. Similarly, be it the affordable homes or the luxury properties, the realty developers have considered the non-resident Indians as an integral target segment for the pitching the project. The home loan, however, remains the pain point for the non-resident Indians as the formalities as well as documentation which is involved in the process is pretty complicated. Eligibility criteria- • The applicant should be minimum of 18 years of age (this might differ from one bank to another) with some regular income source. The complete income can actually be calculated by clubbing the income of the co-borrowers or guarantors and the expected rental income on the proposed property is actually permitted. • Passport should be valid for the applicant. • Applicant should have actually been employed abroad for minimum 2 years or should be serving the valid job contract for a minimum period of 2 years abroad. The applicant who has served for the month's government agencies abroad can apply for the loan. • Some banks do have minimum income clause for granting the non-resident Indian home loan. • The applicant should also be an existing NRO/NRE account holder with the lender. Document required Apart from what is required for the regular home loan, the non-resident Indians require submitting the following mentioned documents to the bank to process the home loan- • Copy of work permit/visa • Copy of relevant pages of the passport • Power of attorney. It is required as the borrower isn't based in India • A driving license that is issued abroad • Utility bills such as telephone, electricity, gas connection, etc. • Original copy of fresh overseas bank account that shows the overseas address • National identity card of the labor card or social card issued by the government at the country of residence

2. • Bank account statement that shows salary credit for the last 6 months • Salary slip/certificate for last 3 months • Duly acknowledged copy of the previous year individual tax returns • Appointment letter/employment contract/ offer letter or any other document/ agreement that shows the present term of employment The processing fee Generally, private banks charge 0.5% of the loan amount and the applicable good and service tax with the surcharge. The government banks charge 0.25% of the amount of the loan as the processing fee. There are other charges that would be applicable as well if the loan gets approved but the amount has to be sanctioned yet. These would include • Valuation report charges • Property insurance premium • Stamp duty payable for loan agreement as well as mortgage • Due diligence charges include a fee of advocate and title investigation report Repayment modes As per the RBI regulations, the repayment of the home loan by non-resident Indian should be done by making use of the local currency. Also, the applicant can repay the loan by making use of the rental income that is derived from the property proposed. Tax benefits The non-resident Indians can claim the income tax benefit in India on the income from the house property. A standard deduction of 30%, interest paid on the home loan, property taxes, on the home loan is allowed for non-resident Indians. Also, the NRIs are allowed a deduction for stamp duty, principal repayment, and registration charges under Section 80C of the Income Tax Act. A tenant, however, pays rent to the NRI landlord should actually deduct the TDS at 30%. n # g+© « PREV ARTICLE NEXT ARTICLE » Comments There is 0 comment on "Under what conditions do NRIs get a home loan in India?". Submit A Comment your comment... yourname... your email... SENDCOMMENT

3. Related Posts I&pp&Apments ppsct p^Jj^teatece 0BlfetlDr^ las^arnty Attrabai NdIa Toeat Realty Market In < > Top Rated Recent Cities To Become Smart With GIS TechnologyThere has been Lot of buzz around the... On June 22,2016 E8 Reasons You Should Consider Buying Than RentingIn the current monetary atmosphere, there is no... On June 10,2016 RERA Regulation Bill Brings Cheer In Rajyasabha Assembly The RERA (Real Estate Regulation Authority)has certainly brought... On June 22,2016 Competition For Real Estate Agents In India By The World's Biggest Brokerage FirmIf you are fed up of continuous calls... On May 3,2015 Coldwell Banker Principled RealtyWhen we visited Knox Realty office for the... On March 3,2015 Categories &Green Homes&Home-grown News!&News &Property T rends&Realty Affairs 50 1 20 2 2 Recent Posts Why Home Buyers Are Opting For Ready Homes

4. The home buyers are more than being ready to buy properties on... On Business-Friendly Strategy To Create Affordable Housing Cost-effective home is the prime problem in developing countries but India presents... On All You Need To Know About Income Tax And NRIs The government is upping the ante against the tax evaders. Recently, a... On Realty Rules That Homebuyers Need To Know The realty low has made it pretty tough for the defaulters to... On Developments NRI Buyers Must Know Through various policy changes in recent past, the Indian government has been... On PLC Is Taxable. Read On To Know More While you were planning to invest in the real estate, you would... On FATCA Impact On NRIs Property In India The United States Foreign Accounts Tax Compliance Act is prompting numerous NRIs... On Things To Keep In Mind If You Are Transferring Sale Are you thinking about selling your property? Well, profit you actually earn... On NRIs Power Of Attorney To Sell Property In India If you are a non-resident Indian and want to conduct the huge... On Quick Contacts oe Phone No. : +91 22 6736 4000 Email:info@coldwellbanker.in © Copyright 2017, Coldwell Banker India. All rights reserved.