However, only one obstacle stands in the way and that is the cost of property in India.
Keeping this is mind, many lenders provide NRI housing loans that one can use to finance their homeownership plans. These financial products provide aspiring NRIs a good extent of funding along with attractive interest rates and long tenures for comfortable repayments. Yet, many NRIs give these loans a pass owning to certain misconceptions that surround them.
This article will highlight 5 of these common misconceptions and explains why they are baseless.
1. You have to fly to India to obtain an NRI Home Loan.
This is probably one of the biggest myths that has clouded the air around NRI home loan. People think that they will need to fly back and forth to India for the home loan process. But this is just a misconception and it isn’t true!
In fact many lenders these days allow you apply online and have the funds disbursed without even a single visit to India. Moreover, some lenders operate branches in cities across the world, if you have one of these branches nearby, then you can get you home loan sorted right there.
2. Loans amount are lower with an NRI Home Loan.
This is another misconception that’s marring the image of NRI housing loans, but is completely false. The loan amounts of a home loan for NRIs is just as same as a home loan for normal residents. In fact most lenders will provide you up to 90% of the property’s value as the loan amount, which is the same case with normal resident home loans.
3. Housing Loans for NRIs come with poor interest rates.
Some individuals believe that the interest rates of an NRI housing loan are inferior to those of a normal home loan. Again, this is not true. In fact most lenders will provide you a housing loan for NRIs at the same interest rates as that of a resident home loan. These rates normally range between 8.35 and 9.60 percent per annum.
4. NRIs get shorted tenures.
Though some lenders might offer marginally shorter tenures, there are many lenders who provide lengthy loan terms for NRIs. Some lenders provide tenures up to 20 years, whereas other provide tenures up to 30 years.
- General Power of Attorney can be given only to blood relatives.This is one of the biggest misconceptions with an NRI home loan but it is again not true. There are many lenders who do not require the lender to be a blood relative and allow friends or associates as well. So if you do not want to burden your family members, fret-not, there are plenty of financers that provide the option of nominating a power of attorney that isn’t a blood relative.
We hope this article has been help and brings an NRI home loan back into your consideration set.
Good luck and all the best!