Most NRI's give a lot of thinking before investing in property in India and most of the time put off the plan due to effort, research and planning involved and in some instances if they do not have enough funds for the same. For such individuals there is always the NRI home loan.
RBI defines NRI as “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.”
Purpose of the NRI Home Loan:
The NRI loans are made available for the following purposes:- Self-construction of a property on a plot of land
- Finance the purchase of a plot of land allotted by a society/development authority
- Renovate/improve an existing property in India
- Purchase of a house either under construction or on a resale
Non-resident Indians are also permitted to purchase an existing house or flat. The RBI has not prohibited banks from providing financing to NRIs for the purchase of a second house, but the loan on the house is for the self-occupation of the NRI upon their return to India. Loans are also offered to NRIs against NRE deposits. These loans can be repaid out of NRE funds but the interest would be charged at a commercial rate. Loans to Non-Resident Indians are also provided against FCNR deposits.
Hope you liked this information, If you having any doubts in availing the NRI home loans then feel free to ask us by commenting below.
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