NRIs or Non- Resident Indians are showing more interest in buying real estate property in India. This growing trend has raised another question, should NRIs consider home loans from Indian financial institutions or not?Let’s find out!
Benefits of Housing Loan for NRI
According to financial experts, NRIs should opt for home loans. Housing loan for NRI has a vast set of advantages. A few of them are listed below for you!
An NRI who has a property in India needs to pay taxes for the same. He/she can claim a 30% tax relief in case there is a home loan. The borrower can get this tax exemption under Section 80C for the principal amount. NRIs can apply for a deduction of Rs1,50,000 per annum. They can even get exemption of registration charges and stamp duty. Under Section 24, they can claim for tax deduction even if the property is under construction. If the NRI is buying property in India for the first time, then he/ she can get an additional tax exemption of Rs50,000 per annum. This deduction is provided under Section 80 EE.
Housing loan for NRI can be termed as a good investment option. These loans have lower rates of interest and buying a property in India becomes really easy. Housing loans take away the additional burden of investment and NRIs can slowly repay the amount in easy monthly instalments. Housing loan for NRI is also cost effective because NRIs can get 85% of the property value as loan. Borrowers also have the facility to compare the NRI loan rate with the benchmark rates of IBHFL.
Easy and Fast
NRIs are often skeptical of taking a housing loan because managing it might be difficult. Now all the details and the application processes are done online. Most of the financial organizations have their online portals where all the loan details and application forms are available. Ready availability of Home loan EMI calculator also makes it easier for borrowers to check how much loan they can take, for how many years, what will be the interest rate, their EMI amounts, etc.
All- time Support
The financial institutions now come with 24*7 customer support. Financial institutes like Indiabulls Home Loans just do not make the loan processing quick but also offers consultation. Borrowers can get customized solutions to their specific NRI loan requirements. If the borrower does not have the time to visit India and choose the property themselves, one can seek consultation services from the agency. These agencies often help NRIs get the best property within one’s budget; validate the project and checkout the approvals and registrations on his/her behalf.
Things to Remember
The process and documents which an NRI must submit for taking a home loan is a bit different from the ones which an Indian resident must submit. Before knowing the pre- requisites let us know who is an NRI according to the Foreign Exchange Management Act (FEMA). According to the agency, 2 types of people are considered as NRI. They are:
- People who are residing in a foreign country and hold a valid Indian passport.
- People who are Persons of Indian Origin (PIOs) but are residing outside India.
The pre-requisites of an NRI loan are:
- The co- applicant or co- borrower must be an Indian.
- The application should be at least 24 years in age.
- The borrower needs to submit past 3 months’ salary slip and bank statement.
- The borrower needs to provider the power of attorney to the co- application of the home loan.
So, if you want to get your dream home at your native land, get an NRI loan from Indian financial institutes, like Indiabulls Housing Finance. They provide you home loans for property which are under construction, self- construction of a house or for purchasing a plot. When it comes to acquiring more assets in the long run, don’t just let geographical boundaries keep you away from stretching your horizons!
Home loans are one of the best options for NRIs to purchase real estate in India. AnNRI loanis not just tax- saving but also known for improving the purchasing power of borrowers. Here’s why NRIs should consider home loans from reliable Indian financial institutions, such as Indiabulls Housing Finance. Know more about housing loans for NRI!