NRI Home loans help NRIs in buying a property in India without any worries. But the banking world will be a little different for NRIs. Therefore, there is a lot of misinformation around it. We have collected ten common myths about NRI home loans for your help.
Myth 1: Restricted country residents can’t avail home loan in India
The Indian home loan process may become a little tricky if you belong to a restricted country, but it isn’t impossible. You can get a home loan just like any other NRI. However, you will have to get a pre-approval from the RBI.
Myth 2: Self-employed NRIs can’t avail home loan in India
This myth seems valid because the salary is the assurance of your capability of repayment. Self-employment means that your salary isn’t regular. And when you are an NRI, the bank won’t be able to do much in case you don’t repay the EMI on time. Still, you can get a loan if you convince the bank for your good enough income source.
Myth 3: NRIs pay a higher rate of interest on home loans
This was true at some point in time. But now both Indian residents and NRIs get a similar rate of interest on their home loans. You can use a home loan calculator to check that.
Myth 4: NRIs can give their General Power Of Attorney only to their blood relatives
This isn’t entirely false. Some banks do ask you to give General Power Of Attorney only to your blood relatives. However, some banks can authorize you to provide the Attorney to anyone you want, or no one at all.
Myth 5: NRIs can’t avail long tenure home loans in India
You can get a home loan of any tenure in India. However, you need to have a clean record and a high bureau score for loans of 20 years or longer. You can use a home loan calculator to check everything related to the tenure.
Myth 6: Overseas citizens can’t avail home loans in India
Dual citizenship doesn’t affect your property purchase or home loan application if one of them has an Indian citizenship. You will just have to assure the bank of repayment by showing them your income source. The further home loan process will be smooth.
Myth 7: Person of Indian Origin (PIO) can’t avail home loan in India
Don’t worry if you have a foreign passport and citizenship in hand. You only need to show your PIO card to the bank, and you can avail of the loan.
Myth 8: NRIs can’t avail joint home loans in India
You can apply for a joint loan in India, but you will need to follow two conditions:
- The co-borrower must be an Indian resident
- The co-borrower must be a co-owner of the property
Myth 9: NRIs can repay in other currencies
No, this isn’t true. Whether an Indian citizen or not, everyone needs to repay the loan in Indian currency only. You can opt for an NRO or NRE account for doing so.
Myth 10: NRIs need to visit India in order to avail the home loan
Until and unless the bank finds some issues with your documents, you need not visit India. You should be in constant contact with the bank and do as guided. Then there will be no need to spend money and come to India.
Now that you know everything about NRI home loans, don’t waste any time and invest in a property in India.