NRIs though more affluent than the average Indian like to get loans from time to time for various purposes such as buying a home, car etc. In fact, for any large investment of that nature, people like to apply for loans. The fact that there has been an increase in the demand for NRI loans is proof of this fact.
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NRIs like to have a home in India which they can return to on their trips to the country. They like their apartments to be located in upscale areas centrally located and are big on services and facilities. It is probably because of this reason that realtors are developing or modifying their constructions to cater to their need and since these are tailor made, it follows that they don’t come cheap!
But wait, before you choose to apply for a loan, you need to find out whether you are eligible to do so. You can apply for a loan only if:
- You are a citizen of India who lives abroad for business purposes or are employed overseas. You would need to live abroad in circumstances which indicate that you will remain out of the country for an indefinite period.
- You are a Government servant, who has been sent abroad to conduct dealings with foreign governments or even international/regional agencies such as the World Bank, World Health organization and the International Monetary Fund.
- You are a Government Servant who is posted abroad say in a consulate or an embassy. You have to basically be a part of the Indian missions or agencies which have been set up abroad by the Indian Government – you need to basically be on the pay roll of the government.
- You are an official of any public sector undertaking or state government on duty abroad.
How to Go About It
As an NRI you need to look for branches of banks which are in your country. Banks such as HDFC or ICICI have many offices abroad and you can take advantage of this fact. Many offices are based in UK, Singapore, Dubai, Bahrain, New York and other countries. These banks are tripping over themselves to offer easy loans to NRIs who want to buy exclusive property in the country.
ICICI is one bank which offers online processing of loans, interest rates which are infinitely attractive and undergo reduction on a month to month basis. These can be fixed or even floating if you would like to have it that way. In many cases fees are even reduced or don’t exist! You can take advantage of the easy payment facilities available. In the case of ICICI, you can get free accident insurance on the amount outstanding. Plus, when you’re in India, you’ll get doorstep service!
Easy Repayment Options
The repayment option is simple enough and begins after a period of eighteen months after the loan is disbursed. Or if you have applied for a loan for a home, it starts just after the home building process has been completed- Whichever one is earlier. You can remit your money from abroad from the country in which you’re based or use your NRE or NRO account or event the FCNR account to transfer the money and your relatives who live in India can take care of the formalities and paperwork for you.
You could also rent out your property and use that money to repay your loan. For this, you need to fill in an application form and give two passport sized photos. Applying and repaying loans for NRIs was never easier!