However, there many potential customers that have doubts about an NRI home loan. Sometimes, these doubts go unanswered and result in an erroneous home loan process. To ensure this does not happen to you, this article will highlight some of the most common doubts regarding an NRI home loan in a bid to help you make a more informed decision.
Where can I Apply for a Housing Loan for NRI?
You can either go online or download the application form or you can visit a branch of the lender for apply for a NRI home loan. If there is branch of the lender in your country then you can have the entire process done from this branch itself without coming to India at all.
How if the money disbursed?
Once the loan is approved and your request for disbursement of funds is received, most lenders will send you the money either in a single lump sum payment or in 3 or more installments.
How Can I Repay The Loan?
Most lenders provide you a host of different repayment options. Some will allow you issue post-dated cheques. Some will also provide you the option of Electronic Clearing System or ECS from Non-Resident (External) Account / Non-Resident (Ordinary) Account in India to repay your loan. Some banks will even allow you repay your loan by using remittance channels.
Do I need to physically present to take a housing loan for NRI?
Though some bank might require this, most lending financers do not require you to be physically present while availing the home loan. You can appoint a power of attorney to a friend or relative. Your Power of Attorney holder can apply and carry out the formalities on your behalf.
Can I Pay Back My Loan Ahead Of Time?
Yes, you can make pay back your loan before the tenure is up. This is called prepayment and can be done by making lump sum payments towards part or full prepayment of your loan. Doing this might however require you to pay some charges. If you wish not to pay these charges, you can also opt for an Accelerated Repayment Scheme wherein lenders increase your EMI over time so you can finish to the loan much quicker.
Do I Need To Insure The Property To Take A Home Loan?
Yes, you will have to take out an insurance policy for fire and other common hazards. What’s more is that the policy will have to be in the name of your lender. These were some of the most common doubts of a housing loan for NRI. We hope the answer have been helpful and have helped you get a better idea of the home loan process. Remember to have all your doubts cleared before you sign on the dotted line.