Property Loans for NRIs: Special Features to Check For

Did you know that for being eligible for NRI home loans in India, salaried employees need to complete one year of stay abroad and self employed professionals need to complete at least 3 years? If you are working in the UAE, you will also need to show annual earnings of 48,000 dhms for being eligible for a 6 to 10 year loan term. This amount will double if you happen to be self employed. Once you clear the eligibility clauses, you will need to look for home loans with special features so that the entire process can be managed with ease.

Special Features your Loan Proposal must Incorporate

Some of the features you need to look out for should include:

  • Interest to be calculated on monthly reducing balance: When the interest is calculated on a reducing balance, it is a more accurate replication of the cost of borrowing. Besides, this is also considered to be a much more transparent method and NRIs can be more at ease.
  • Documentation needs to be hassle free: Owing to the fact that the borrower is residing outside India, he will need highly proficient and hassle free proceedings for filing the documentation. In most cases, NRIs are allowed to make an online application for home loans. They can even place a call or leave a number for a call back. Most of the documentation is processed online for complete convenience. Some lenders provide door to door pick up for documents in India.
  • Waiver of fees on part payment: In case part payments are made by the borrower, the lender must seek a complete waiver of fees.
  • No cost of foreclosure: In case the borrower wishes to foreclose the loan or decides to pay up before the completion of the full loan tenure, there should be no foreclosure charges applicable. Normally, every lending bank charges an additional amount if the lender wishes to close the loan earlier in lieu of the interest it has lost.

Non resident Indians must also look for a waiver on legal and transactional fees. The idea is to be able to cut down on associated costs as much as possible and secure home loans at the most attractive rates of interest. The NRI should be able to manage all proceedings from the UAE and be able to contact all concerned representatives at the touch of a button.


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