NRI (Non-Resident Indian), who wish to buy a property or have their home renovated might not always have the money ready. Well, there is no need to worry! There are home loans available that help them attain the required financial assistance. However, it is important for one to meet certain criteria to get approval on the loan without any hassles.
There are home loans for NRIs available with an extensive choice for one to choose in order to buy a home or property. Now, before we talk any further and understand the mortgage loan for NRI in India, let’s discuss the eligibility criteria that need to be met to attain the home loan.
You can be a salaried person or a self-employed individual who wishes to get a home loan. You can apply for the home loan as an NRI either individually or even with a co-applicant who might not be co-owner of the property. You must know that all co-owners require co-applicants. You can simply get a home loan to buy a new house, resale the home or even reconstruct the home that you own.
Below listed are the key documents that we need to apply for the home loan:
– Proof of identity and income
– A copy of the property allotment letter, in case the property is shortlisted
– Photocopy of authentic passport and visa
– Power of attorney
– Applicant’s passport size photographs
Non-resident Indians receive the same tax benefits as any resident Indian with subject to repayment key element and interest aspect of home loan attained in India. However, before you take the discussion any further on the deduction, It is important for the NRI to assess whether or not the tax deduction available is beneficial or not. NRI can enjoy benefits from the tax deduction only if they have income that is eligible for tax in India.
In case they earn or have taxable income, they can enjoy the benefits of deduction on the repayment of the interest as per section 24, 80C & 80EE of the ITA (Income Tax Act). Since it will be too much to handle for you, it is advised to have experts on board with you to help you make the right decision and help you have a smooth journey.
– According to Section 80C, the deduction can be availed with respect to the repayment of the aspect of home loan.
– The deduction is available for repayment of interest on a home loan, one can attain that under the head ‘income from house property’ up to 200,000 p.a.
– Section 24 allows deduction related to repayment of interest on NRI home loans, though the property will be in the pre-construction phase.
Features of NRI home loan are listed below…
– NRI home loan can be attained in order to meet property-related needs of all kinds, this includes buying a property/home, constructing a home, or even renovating the property in the country.
– You should know that the process of getting through the application is not time-consuming and is not complex.
– With most lenders or mortgage loan companies, an applicant can sign up for an NRI home loan online. The process is not at all challenging and will be done quickly. It is easier for one to track the status.
– All banks or lenders offer a prepayment option with either none or a little extra fee.
– Most NRI home loans offer amazing interest rates on a monthly reducing basis. Candidates have an attractive option to choose between fixed or flexible interest rates.
Those who are planning to purchase an under-construction property might have to pay only the interest until it is completed, later they start dealing with the EMIs. However, those who wish to start repaying the principal; can simply choose the loan and pay the full EMIs. You should know that while you are buying a full home, your EMI will start instantly.
Also, all this happens via an NRO bank account in India. There is no penalty for pre-payment for full value or even partial value of the outstanding loan amount that needs to be paid from the sources.
Well, you can seek assistance or guidance from professionals will great years of experience under their sleeves that will be helping you attain a mortgage loan for NRI in India.
We at Connecting NRIs believe to bring nothing but ease to the lifestyle of Non-Resident Indians. As being one of them, we understand all the challenges and need to stay connected to the roots that one goes through. Well, if you are planning to get a mortgage loan or need help with all the banking process, connecting with us will be beneficial for you.
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