For NRIs, owning a home in India not only helps maintain a sense of connection and belonging to their heritage but also provides a profitable investment opportunity. This article discusses home loan rates for NRIs alongside online tools that make loan planning and repayment easy.
Home Loan Rates for NRIs in India: Everything You Need to Know
NRIs can apply for home loans at competitive interest rates. However, to be able to establish candidature for such a low interest rate, you must have a strong credit profile. Other than establishing home loan eligibility for NRI home loans, you must also be able to show a high credit score, a stable income and job, and low dependency on credit through a low debt-to-income ratio or FOIR. You can even consider adding an Indian co-borrower to increase your chances of securing low home loan rates for NRI through negotiations.
Things to Keep in Mind When Applying for an NRI Home Loan in India
- If you are planning to apply for an NRI home loan, make use of the home loan calculator. The home loan calculator is an online tool that lets home loan borrowers calculate their EMIs for the loan amount and tenor they have in mind and gauge the feasibility of the loan. In case of very high or very low EMIs, borrowers can try other combinations of loan value and tenor until they arrive at a loan amount and tenor combination that delivers agreeable results. Other than loan planning, the home loan calculator also provides an amortization schedule which can help immensely with loan repayment planning if becoming debt-free is high on a home buyer’s list of goals to achieve.
- Other than the home loan calculator, all home loan applicants, including NRIs, must also make use of the home loan eligibility calculator to know the loan amount that they qualify for and can get approved for. Knowing your eligibility and applying for what you qualify for makes getting approved for a home loan easy and also gives one high negotiating power.
- For NRI home loans, the loan repayment happens through an NRO or NRE account. You can also directly credit your home loan EMIs through a direct money transfer from another country. Consequently, know that fluctuations in currency exchange rates will have a direct impact on your home loan EMIs and the total cost of borrowing funds.
Conclusion
To conclude, NRI investments in the Indian real estate market, particularly in the residential sector, are rising steadily. With favourable home loan rates and online tools for loan planning, NRIs can easily navigate the home loan process and also secure financial assistance at the most lucrative loan terms. If you have been thinking of buying a home in India, now is the perfect time to start taking steps in that direction.