Allahabad Bank is one of the leading banks across the globe that offers great financial services and products. The housing finance scheme offered by this bank for the NRI and PIOs comes with great flexibility and innovation. It is designed to meet the needs and requirements of the customers.
|Age||The age of the applicant must be at least 21 years. The borrower’s age when added to the period of repayment should not be more than 60 years.|
|Income / Remittances||The gross income of the applicant per year must be at least Rs.3 lakh OR, The gross remittance of the applicant must be equal to Rs.3 lakh in his/her FCNR / NRE / NRO during past 3 years|
|Employment status||The applicant must be self-employed, employed, or have his/her own business unit while staying abroad at least for a period of 1 year.|
The Allahabad Bank Housing Finance Scheme for NRI / PIO can be used for different purposes that are mentioned below:
Need based housing finance that is dependent on capacity of repayment, subject to the following:
If the borrower’s age or the co-borrower’s age on the application date is less than 45 years:
If the borrower’s age or the co-borrower’s age on the application date is equal to or above 45 years:
For assessment of the loan, IT Returns for the past 2 years is mandatory for all the applicants whose income is considered. There shouldn’t be any abnormal increase in the income.
The loan amount can be availed for purchasing the piece of land and then constructing the house on that plot. However, the loan utilisation for land purchase is restricted to maximum of 75% of the land cost or 60% of the loan amount that is permissible, whichever is lower.
|Loan amount||LTV Ratio in percentage||Risk Weight in percentage||Margin in percentage|
|Up to an amount of Rs.30 lakh||Less than or equal to 80||35||10|
|Greater than 80 and less than or equal to 90||50|
|Above Rs.30 lakh and up to an amount of Rs.75 lakh||Less than or equal to 75||35||20|
|Greater than 75 and less than or equal to 80||50|
|Above an amount of Rs.75 lakh||Less than or equal to 75||75||25|
The repayment period that can be availed under this particular loan scheme is the time till the borrower reaches the age of 60 years. However, the maximum repayment period is capped at 10 years.
If the Non-Resident Indians and Persons of Indian origin are not available for submission of the documents required for the home loan or for availing the housing loan, a Power of Attorney (irrevocable) executed by the housing finance borrower must be in favour of an individual staying in India. The document must be stamped according to the local laws prevalent in this country. The Power of Attorney must be attained at the initial stage.
|Loan Amount||Rate of Interest|
|Loan amount up to Rs.75 lakh||MCLR + 0.05%|
|Loan amount above Rs.75 lakh and up to Rs.3 crore||MCLR + 0.15%|
|Loan amount above Rs.3 crore and up to Rs.5 crore||MCLR + 0.40%|
|Loan amount above Rs.5 crore||MCLR + 0.55%|
|Loan Amount||Processing Fee|
|Loan of up to Rs.25 lakh||Processing fee of 1.06% (Minimum amount Rs.2,670|
|Loan of above Rs.25 lakh and up to Rs.150 lakh||Processing fee of 0.53% (Minimum amount Rs.26,700|
|Loan amount above Rs.150 lakh||Processing fee of 0.27% (Minimum amount Rs.80,100)|
|This scheme is designed for||Non Resident Indians (NRIs) having an Indian passport or Persons of Indian origin (PIOs) having a foreign passport. The loan applicant can choose to have the account singly or jointly. A close family member of the NRI or PIO (spouse, parent and/ or child (with some kind of future interest in the asset) can be the co-applicant even if they are residing in India.|
|Purpose of the Allahabad Home Loan Product for NRIs or PIOs||To build a house for residential purpose on a plot the customer already holds. To buy a piece of land (properly established) located in a (developed or upcoming) residential area for the purpose of constructing a home. To buy a house, apartment or villa. To renovate, extend, repair a residential property you already possess. To buy an under-construction property. To buy an old house and refurbish, renovate, extend or repair it. To re-finance or take over an existing home loan from other bank or financier.|
|Eligibility Criteria||Eligibility (Employment status)||Eligibility (Income/ Remittances)||Eligibility (Age)|
|The applicant must be: a. salaried, b. entrepreneurial, or c. have a business unit and live abroad for more than a year||The applicant should have at least INR 3 lacs of gross yearly income.||The applicant must be of age 21 and above. Age of the debtor should not be above 60 at maturity.|
|The applicant should have at least INR 3 lacs per year of gross remittance in his NRE/NRO/FCNR during past three years.|
|Home Loan Sum||One must apply for at least INR 5 lacs as loan. The candidate can apply for up to INR 5 Cr under this scheme.|
|Eligible Loan Amount||Salaried Individuals: (a) 48 times of gross remuneration per month (b) Four times of gross income per year as specified in the job contract and/ or ITR filed in the residing nation. Professional or self Employed People: (a) More than three times of Gross Income per year as mentioned in the ITR filed in the residing country. (b) Two times of minimum yearly Inward Remittances in NRE/NRO/ FCNR account during the past three years. Net deductions counting the EMIs of home loan must not be more than 50 percent of the sum taken for computing eligible housing loan amount.|
|Financing for Purchase of Plot||The candidate can avail the loan as a package for buying a plot of land as well as building a house on it (within the stipulated period). But, using this loan to buy the land will be limited to 75 percent of the actual price of the plot or 60 percent of the allowable amount of overall loan, whichever is lesser.|
|Repayment||You can take up to seven years to settle the loan|
|Moratorium Period||With respect to building of a new house or apartment, the moratorium period starts 18 months from the day of first payment or 30 days post completion of construction, (whichever is early) In other cases, it is three months post the final payment Interest is to be served during this period.|
|Security||Equitable or Registered Mortgage of the asset: · Personal Guarantee from spouse (if he/ she is not a co-applicant and living in India) and another person with sufficient means living in India (accepted by the bank). · Third party guarantee of resident Indians might be exempted by the Sanctioning Authority as per the merit from case to case). If creating equitable mortgage of the property is delayed: · Collateral security to the extent of the loan amount in the shape of any other secure property or financial securities or personal guarantee of one extra person with sufficient means (accepted by the bank). · If the home loan is approved or paid out based on the Power of Attorney, personal guarantee of power of attorney holder must also be acquired. · In cases where the NRI or PIO is not personally available for processing and documentation, an irreversible Power of Attorney accordingly implemented by the Borrower (NRI/ PIO) in favour any close relative in India can be submitted in the initial phase.|
|Rate of Interest||9.70 percent|
|Processing Charges||Up to INR 3 Cr||MCLR|
|Amount between INR 3 Cr and INR 5 Cr||MCLR + 0.25 percent|
|Margin||The minimum permissible margin will be 25 percent of the cost of the Project. Cost of the Project will entail: a. Price for which the land, apartment or house is bought b. Cost of building, restoration or extension (whichever applicable) c. Stamp duty and registrations charges as pertinent. d. Accumulated interest sum of the moratorium period, if planned to be capitalized. e. Premium of Allahabad Bank Griha Mangal Scheme.|
|Mode of Repayment of the loan||Transfer of funds from overseas via usual banking channels Out of funds in NRE/FCNR/NRO accounts Transmittal out of local funds by close family member or authorized person From the rent earned from letting/ leasing out the house or the apartment bought from bank house loan|
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