We see people consuming a lot of info from here and there and have developed few common myths regarding NRI Home Loans in India. It’s imperative that with such information overload with multiple digital channels, there will be certain confusions.
However, we’re here to help you in home loan borrowing journey. In this Chapter #6 of Digital Loan Series, we are walking you through the common myths that NRI people have regarding taking home loans in India.
#1. Myth: If you’re an overseas citizen, you can not take a home loan in India
Reality: Being an overseas citizen, you hold dual citizenship. And, your Indian citizenship do play a role here in allowing you to purchase the property and apply for a home loan here. You just have to inquire about the basic formalities and will have to disclose your income source and show your income stability to the bank.
#2 Myth: You have to visit India to take the home loan
Reality: Absolutely not! Not until, there is any discrepancy on your documents. You have all the freedom to apply from your place. You just have to be in constant touch with the banks here and send the required documents.
Chapter #4 of Digital Loan Series by WhatsLoan
#3 Myth: If you’re an NRI staying in a restricted country, you can not take home loan in India
Reality: It’s not the truth. There is a way out of it. If you are staying in countries such as Pakistan, Bangladesh, you can still apply for home loans but you may need to get a prior approval from RBI.
#4 Myth: If you’re an NRI, you can take long tenure home loans
Reality: Wrong! You can. Now, most of the banks consider giving you loans for 20 years or more. Keep your bureau score higher and your records clean and you’re all game to have the home loan for considerable duration.
You must know!
#5 Myth: If you are an NRI, you can’t take a join home loan in India
Reality: You can apply for a joint home loan in India. The only requirement is that your co-borrower should be a resident of India and should be the co-owner of the property.
#6 Myth: If you’re a self-employed NRI you can not get home loan in India
Reality: Whether you are an employee, or self employed you can apply for the home loan here in India. Also, it is easier for salaried employees to get the home loan as compared to the self-employed people, but if you show that your income source is good enough to meet the credit on time, you are good to go.
Chapter #5 of Digital Loan Series by WhatsLoan
#7 Myth: Being an NRI, you can give your General Power Of Attorney only to your blood relatives
Reality: No. There are certain banks that allow you to give your General , including friends and associates, Power of Attorney to anyone whom you trust here in India (need not be your blood relative). Also, in case if you do not wish to give your GPA to anyone, you still can process the home loan as few other banks allow you to do so at the constraint of having a local co-applicant.
#8 Myth: If you are a PIO (Person of Indian Origin) can not buy homes in India
Reality: Wrong! You can own the property here in India and can apply for the home loan, but only if you’re of an Indian origin. You will have to present your PIO card and other required documents to process the loan.
Chapter #2 of Digital Loan Series by WhatsLoan
#9 Myth: You can repay the loan using your existing bank account
Reality: If you are an NRI and applying for the home loan in India, you need to repay the home loan in rupees. For this, you can use your NRE (Non Resident Rupee) account, NRO (Non Resident Ordinary Rupee) account, or other banking channels; but not in any other currency.
#10 Myth: You will have to pay higher rate of interest on your home loans.
Reality: No. You will pay the same rate of interest as your Indian counterparts. Long ago, this provision was there but now a days, many banks allow a similar rate of interest for the home loan application for the NRIs.
Chapter #1 of Digital Loan Series by WhatsLoan
By the way, do you know that we have built a Digital Loan Key, a unique financial identifier, that can retrieve your legacy documents (such as your Aadhaar card, pan card, bureau score, 10th mark sheets, birth certificate) online and enables you to get it verified within minutes and share with the lenders in one click.
The mission of this Digital Loan Series is to educate you and make you ready for the loan anytime!
If you happen to read this article, we assume you are somewhere in between of thinking for borrowing/purchasing a house. We recommend you to follow the series, or if you have any immediate query, reach out to us at firstname.lastname@example.org.
We also recommend you to share this with your people, your network, and younger ones so that they can be loan ready for the right time!