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| Am I an NRI? |
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| Under the Foreign Exchange Regulation Act of 1973, Non-Resident Indians are: |
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Indian citizens who stay abroad for employment or carrying on business or vocation outside India or for any other purpose in circumstances indicating an indefinite period of stay abroad. |
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Government servants who are posted abroad on duty with the Indian missions and similar other agencies set up abroad by the Government of India where the officials draw their salaries out of Government resources. |
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Government servants deputed abroad on assignments with foreign Governments or regional/international agencies like the World Bank, International Monetary Fund (IMF), World Health Organisation (WHO), Economic and Social Commission for Asia and the Pacific (ESCAP). |
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Officials of the State Government and Public Sector Undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad. |
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| Does Reserve Bank of India have any guidelines for loans to NRI? Yes. There are guidelines issued by the by the Reserve Bank of India for grant of Housing Loans to NRIs. The guidelines are: |
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| The loan amount shall not exceed 85% of the cost of the dwelling unit |
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The loan amount shall not exceed 85% of the cost of the dwelling unit. |
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Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India. |
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| How do I make payments towards my installments etc.? |
| Payment of fees, charges, Pre-Emi, additional interest and incidental charges. |
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Cheque drawn on an Non-Resident (Ordinary)/ Non-Resident (External)/Non-Resident Special Rupee account. |
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Post dated cheques drawn on any of the above accounts. |
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Demand draft/pay order from an Non-Resident (Ordinary)/ Non-Resident Special Rupee account. |
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FCNR account. |
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Funds transfer from abroad. |
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Cash payments are not to be accepted. |
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| Payments towards EMI: |
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Payments towards EMI are to be made through post dated cheques drawn on an Non-Resident (External)/ Non-Resident (Ordinary)/ Non-Resident Special Rupee account |
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| What is meant by "Own Contribution" and how do I pay it? |
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Own Contribution is the cost of the dwelling unit financed less the loan amount. The own contribution should be met from direct remittances from abroad through normal banking channels or from the Non-Resident (External) Account/Non-Resident (Ordinary) or the Non-Resident Special Rupee account in India. |
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Can I repay my loan ahead of schedule? Yes, you can repay your loan ahead of schedule, by remittances from abroad through normal banking channels, your Non-Resident (External) Account/Non-Resident (Ordinary) or the Non-Resident Special Rupee account in India . Usually they're no early redemption charges. How much loan am I eligible for?
Your repayment capacity as determined by HFCs will help decide your loan eligibility. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history etc.
Can I get the loan approved without actually coming to India ? Yes. Some companies have a facility to approve a loan without you actually having to come to India . You will have to appoint a Power of Attorney to co-ordinate with the company on your behalf. What are the documents I have to submit along with the application? |
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| The following documents are normally to be submitted along with the application: |
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Photocopy of the labour contract and English translation duly countersigned by your employer |
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Latest salary certificate (in English) specifying the following. |
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Name (as it appears in the passport) |
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Date of joining |
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Passport Number |
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Designation |
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Perquisites and salary |
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Photocopy of labour card/identity card. |
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Photocopy of valid resident visa stamped on the passport. |
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Photocopy of monthly statement of local bank account for the last 6 months. |
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Property related documents. |
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| What is an annual rest? |
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When interest is calculated on annual rests. Principal repayments are credited at the end of the financial year. When interest calculated on monthly rest. Principal repayments are credited at the end of every month.
What is an EMI?
You repay the loan in Equated Monthly Installments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement.
What is the size of the EMI?
The EMI is 1/12th the Equated Annual Installment. The size of the monthly installment comprising principal and interest depends on the quantum of the loan, the interest rate applicable and the term of the loan. Please refer to the EMI Calculator for further details.
Can I give a Power of Attorney in favor of a person of my choice in India to complete loan formalities on my behalf?
Yes. It would be desirable to appoint a Power of Attorney in India to represent you in dealings with HFCs. The Power of Attorney can be given to any person of your choice in India . |
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