Fantastic Opportunity To Own A Home In The Country Of Your Roots Article

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Fantastic Opportunity to own a Home in the Country of your roots

FEMA 1999 defines a Non Resident Indian(NRI) as an Indian citizen or Foreign National of Indian Origin staying outside India for purposes of employment, business or vocation under such circumstances as would require him/her to stay outside India for an indefinite period.

Author: Addi Vardhaman

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Such persons can avail loan facilities from Indian Banks either to buy, built, renovate a house or purchase land to construct a house. State Bank of India has clearly laid down eligibility criteria for availing such loans. NRIs (holding valid Indian passports) above the age of 21 and gainfully employed abroad for at least 2 years can use home loan facilities in India. Also, equipped with a valid work permit these person must be earning a minimum Net Monthly Income(NMI) of US$ 500/month or Net Annual Income(NAI) of US$ 6000.

Starting from a minimum loan amount of 3 lacs these loans' upper limits are decided by ones NMI or NAI figures. Maximum loan eligibility is 60 times NMI/5 times NAI for those below 45 years of age. For persons above 45 the figure is 48 times NMI/4 times NAI. However subjected to the following, the maximum loan for repairs and renovation can not exceed Rs. 10 lacs. Rs. 20 lacs is the maximum amount one can borrow for the purchase of plot and house construction. Also one can take 10% of the project cost—subjected to a maximum limit of Rs. 3 lacs--as a loan meant for furnishings and consumer durables.

Under any circumstances the total repayment liabilities must not exceed 50% of NMI/NAI. The processing fee for these NRI home loans is 0.50% of the loan amount which includes the service tax. Interest rates are the same as for resident Indians. Repayments has to be made in EMIs(Equated Monthly Installments); while the interest is levied on daily diminishing balance basis. For the borrowers below 45, the maximum repayment period is 20 years, while it is 15 years for those above 45—both limits subjected to the settlement of loan by the age of 60, or the retirement age(whichever is earlier).

As far as the modes of repayments are concerned there is a great customer friendly facility available. One can pay through many means like:normal banking channels from abroad, remittance from local funds by relatives, from the funds in TRE/FCNR/NRO accounts. There is a whole suit of loans to choose from like: SBI Maxgain, SBI Flexi, SBI Reality, SBI Freedom Home Loans.

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Fantastic Opportunity to own a Home in the Country of your roots