For NRIs who are looking to invest in India either by way of apartments, independent houses or plots, banks have a slew of loan offers. A look by

Has the rupee depreciation made everyone unhappy? Not necessarily if you are an NRI (non-resident Indian). It has been observed that NRIs have begun to look at investing in property with renewed interest considering that their purchasing power increases with depreciation in the Indian currency.

And most banks have started slew of offers to attract them to take loans to buy apartments or independent houses or plots. The interest rates are on a par with those offered to local citizens. The tenure of loan varies from seven years to a maximum of 15 years.

The documents to be submitted for the purpose are work permit or employment contract letter (translated in English in case the letter is in any other foreign language), income confirmation letter, identity card, bank details including last six months’ statement, credit rating in case the borrower’s country follows this system (similar to ratings received from CIBIL in India), and passport copy with visa details. The loan seeker should have worked for a minimum period of one year (three years in case of a running a business).

The age of the borrower should be at least 21 years at the time of applying for the loan and the borrower can have a co-applicant in case it is required to enhance the loan quantum (both should have source of income). The maximum loan offered is Rs. 2 crore in most banks with the interest rate being 10.50 to 11 per cent for loans up to Rs. 30 lakh and an increase of 0.50 per cent for loans that exceed Rs. 30 lakh.

However, such aspects can vary from bank to bank. The maximum quantum of loan approved is 80 per cent of the property value.

The country in which the person is working matters since the norms would change from country to country. For example, if one is working in the Middle East or the U.S. or the U.K., the eligibility requirements could change and further changes could be seen depending upon the duration of work permits.

The repayment of loan (EMIs) is accepted only through the NRE (non-residential external) or NRO (non-residential others) accounts with remittances from the specific country of working as declared in the loan application form. Remittances from any other source are not accepted and the remittance has to be done in rupees only. Nowadays most banks have overseas branches in places such as New York, Dubai, Singapore, and London, facilitating easy loans for the NRIs. Not to forget are the property documents that need to be submitted which would be similar to what is accepted from local borrowers prior to approving a loan.

BALAJI RAO

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