This article presents the salient points about NRI home loans and how to avail of the best ones.
Being an NRI (Non Resident Indian) is the ultimate dream for many. It means that one is out there in the world, creating a successful life for themselves and their families. They are out of the country, but the country still retains its roots for them. Every NRI has family and friends back home in India, so the connection between them and their home country is not lost, despite the geographical distance.
Most NRIs have a tenable connection with the land of their birth via real estate. They have the surplus funds to invest in property in India. These residential properties are purchased with the view to have a financial nest egg to fall back on when they return to India in the future. In the last decade, with banks and financial institutions pitching umpteen NRI home loan products, it has become quite simple for NRIs to buy houses in India.
Choosing the right NRI home loan
Often, the journey of a thousand miles begins with a single step. This is certainly true of NRIs buying homes in India – they fly from a thousand miles away to quickly wrap up the property purchase before heading back home. Many NRIs opt to take home loans. However, lending institutions in the country are not uniformly responsive when it comes to approving and processing the loan application quickly. But there are a few housing finance companies like Punjab National Bank Home Finance Limited (PNBHFL) that have exceptional NRI home loans with speedy disbursal processes.
PNBHFL offers competitive interest rates, easy and minimal documentation and fast disbursal of loan monies. So you don’t need to worry about extending your stay beyond a certain date. You can fly down to India, select a house, get the loan and pay for the home. It’s that easy!
How to take the NRI home loan
- You can look up all the information you need about the NRI home loan on the PNBHFL website. You can fill out a short pre-application form giving your Name and Contact Details.
- Submitting the form authorises a representative of PNBHFL to contact you. You can ask whatever questions you may have and even schedule a personal interaction at your home.
- Meanwhile, you can apply for the loan online. Start by using the NRI home loan calculator. It helps you find your loan eligibility and projected monthly EMI payments. The NRI home loan calculator clears many doubts you may have about the loan tenure and interest vis-à-vis the loan amount you seek. Though the amount it depicts is not to be considered the final amount that will be disbursed to you, it is the closest approximation to the actual principal amount.
- Check PNBHFL’s loan eligibility criteria (age, citizenship status, annual income, working abroad for at least one year before applying, Indian passport holder showing NRI status, etc.) for NRIs seeking the home loan.
- Also check the documentation process and the list of documents needed. Log on to the PNBHFL website for a list of documents you need with your application.
- Your application is processed speedily, while conducting diligent background checks on the property.
- The NRI home loan is split into two: Up to 80% of the property value furnished by the lending institution for loans below Rs 75 lakh, with remaining 20% to be paid from your own resources. This ratio is 75:25 for loans above Rs 75 lakh.