Interest rate is one of the key factors that weigh on a home buyer’s mind while finalising a loan, as it decides the size of your Equated Monthly Instalment (EMI). Your total interest over the entire tenure of the loan and EMIs depend on the rate your lender charges. Like other customers, Non-Resident Indians (NRIs) look for the best interest rate and payment options.
Indian banks, through their network of branches, reach out to NRIs with competitive interest rates and attractive payment terms that suit their monthly budget.
The banks offer NRIs home loans up to Rs 10 crore with minimal documents. For more information on different banks’ NRI home loan products, you can log on to their respective websites.
NRI Home Loan Interest Rate
Like other interest rates, the NRI home loan interest rate also changes from time to time, depending on a variety of factors such as the amount you are borrowing, the down payment you would be making, your credit history and status, loan tenure and type of interest rate (fixed or floating).
As rate of interest varies check the below article to get the lowest interest rates.
Processing Fee On NRI Housing Loan
The banks charge a processing fee for all kinds of loans. Sometimes, the banks completely waive off or substantially reduce processing fees as a special gesture.
Housing Loan for NRI Waives off Pre-Closure Charges
Pre-closure chargers are the charges to be paid to the bank or the lender for repaying the loan before the loan tenure ends. Most banks do not levy any charges if an NRI home loan is foreclosed.
The Following Factors Determine Your Home Loan Interest Rates for NRI
- Loan Value: The size of your loan is a factor that determines the rate of interest you would be charged.
- The rate also depends on the applicant’s income.
- The credit history of the applicant is also a factor when it comes to determining the rate of interest.
- You could get some relaxation in interest rate if you are an existing borrower of a bank.
- The interest rate also depends on the type of loan you are opting for.
How to use NRI Home Loan EMI Calculator
It always helps if you know beforehand what your EMI for a home loan would be.
The Home Loan EMI Calculator does exactly that, making it easier for you to assess your capacity to repay and plan your finances before making the big decision.
What is an NRI Home Loan EMI Calculator?
The NRI Home Loan EMI Calculator is an online tool that helps you compute the amount you would have to keep aside for your home loan every month until you repay the whole amount.
Why is an NRI Home Loan Calculator Needed, And How Does it Actually Help?
As home loans generally involve a long tenure and high amount, a borrower needs to weigh a lot of factors before choosing the right home loan product.
The easy-to-use online NRI Home Loan Calculator helps you make an informed decision by correctly projecting the EMI you would have to pay and the interest accrued on a particular loan amount. You can also use any bank’s NRI Home Loan Calculator to alter the tenure or the amount to be borrowed to suit your budget.
How Does the Calculator Work?
The Home Loan Calculator works in simple steps.
Log on to the Home Loan Calculator on the website of the bank or the non-banking finance company concerned, enter the amount of loan you need, the tenure you would like to go for and the rate of interest. You will instantly get the EMI amount. For example, if you need a loan of Rs 1crore and would like to choose a 30-year repayment period at a fixed interest rate, or let us say, 6.85 per cent, your EMI will be Rs 65,526.
01. Who can get NRI Home Loans?
Non-Resident Indians having a valid Indian passport, Persons of Indian origin (PIOs) having a valid foreign passport or those holding Overseas Citizens of India (OCI) card, are eligible for NRI home loans.
02. How to Apply for an NRI Home Loan?
You can apply for a bank NRI Home Loan online, via phone or by visiting the bank branch in person. Most banks have dedicated phone lines for NRIs. NRIs can also get in touch with the bank online.
03. Do I have to Visit India to Avail the Loan?
No, you need not visit India in person to apply for an NRI Home Loan, but banks require a power of attorney while extending home loans to NRIs.
04. Do I get Tax Benefits with My NRI Home Loan Account?
Yes. You will be eligible for tax relief on the principal and interest components of your balance transfer loan under the Income Tax Act, 1961.
05. What are the Eligibility criteria for an NRI Home Loan?
NRI home loan eligibility criteria is based on applicant’s work (income) and applicant’s age.
Work or Business Experience:
The applicant or co-applicant whose income is considered for eligibility should have been either working abroad for the past two years or engaged in business for an equal number of years.
The minimum age for the applicant and the co-applicant are 21 years and 18 years, respectively. The maximum age limit for the applicant is 70 years at the time of loan maturity.
NRI Home Loans are Tailor-Made
Most Indian banks offer home loans that suit an NRI’s requirements. Home loans for global citizens are tailor-made to meet their requirements. Following are the key features of a usual NRI Housing Loan.
Long Tenures – Extending up to 30 years.
Minimal Home Loan Documents
- The maximum age limit for the applicant is 70 years at the time of loan maturity.
- No prepayment penalty.
- Top up loan can be availed five times during the loan period (Minimum Rs 1 and maximum Rs 2 crore).
- Free accidental insurance with every home loan.
- A wide choice of repayment options.
If an NRI borrower wants to enhance eligibility for higher loans, they can add close relatives as co-applicants, with or without being a joint owner of the property.
The applicant can add a person who is not a close relative as a co-applicant only if he/she is the joint owner of the property.
Want to know more about home loan and the whole process? Check the below articles
Facts About Home Loan Process That You Should Know Beforehand
How To Apply For A Home Loan? Well Begun is Half Done.