Allahabad Bank Housing Finance Scheme for NRI / PIO

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.

Target Audience:

• NRIs (Non-Resident Indians) who have their Indian Passports or PIOs (Persons of Indian origin) who have their foreign passport, jointly or singly.
• Close relatives of Non-Resident Indians and Persons of Indian origin like mother, father, daughter, son, and spouse can be joint borrowers if they are Indian residents who have future interest in purchased property.

Eligibility for Allahabad Bank Housing Finance Scheme for NRI / PIO:

Purpose of the loan:

The Allahabad Bank Housing Finance Scheme for NRI / PIO can be used for different purposes that are mentioned below:

• Construction of a residential house on a piece of land that has already been purchased.
• Purchase of land or plot so that a house can be constructed there.
• Purchase of a flat or house.
• The loan can be used for repair, extension, and renovation of a house that is already owned by the borrower.
• The loan amount can also be used for purchasing an unfinished house, old house or renovation, repair, and extension of the same.
• This loan can be used to take over home loans from other banks or financial institutions.

Loan Amount:

• The minimum loan amount that can be availed under this housing loan scheme stands at Rs.5 lakh.
• The maximum amount of loan that can be availed under the Allahabad Bank home loan scheme stands at Rs.5 crore.
• The total amount of deductions including the equated monthly instalments of the loan must not go beyond 50% of the amount considered for the calculation of eligible amount of loan.

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:

• For all the salaried applicants, the maximum loan amount will be capped at 72 times of their gross income or salary per month.
• For all the other home loan borrowers, the amount of loan will be capped at a maximum amount of 6 times of the annual income (gross) as per audited financials or Income Tax Returns.

If the borrower’s age or the co-borrower’s age on the application date is equal to or above 45 years:

• For all the salaried applicants, the maximum loan amount will be capped at 60 times of their gross income or salary per month.
• For all the other home loan borrowers, the amount of loan will be capped at a maximum amount of 5 times of the annual income (gross) as per audited financials or Income Tax Returns.

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.

Financing for the land purchase:

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.

Margin:

Period of repayment:

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.

Moratorium Period:

• In case of a new house construction or a flat construction, the moratorium period stands at 18 months. It starts from the disbursement date or a month after project completion, whichever comes earlier.
• In all other cases, the moratorium period starts after a period of three months from disbursement date of the loan.
• The interest is applicable during the moratorium period.

Security for Allahabad Bank NRI Home Loan Scheme :

• Registered or Equitable Mortgage of property.
• Spouse’s personal guarantee (if not a co-borrower and staying in India) along with another individual’s guarantee who resides in India. These must be acceptable by Allahabad Bank. In case of resident Indians, third party guarantee can be waived on merit of the case by the Sanctioning Authority.
• In case of a delay in the equitable mortgage creation, the bank requires securities in the form of personal guarantee, immovable property or financial securities.
• If the loan is sanctioned and disbursed on Power of Attorney basis, then guarantee of the Power of Attorney holder must obtained.

Rate of Interest for Allahabad Bank NRI Home Loan Scheme

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.

Documentation Procedure for Allahabad Bank NRI Home Loan:

• Two recent passport sized photos of applicant(s).
• Xerox copy of passport with a valid visa stamp.
• Legal work permit.
• Job contract duly attested by company, consulate and/ or embassy.
• Latest salary slip in original and copy of company ID card.
• Income proof papers (overseas bank statements, ITR filings etc.) if the applicant is an entrepreneur or businessman.
• Details of preceding job.
• Photocopy of Continuous Discharge Certificate (CDC) for applicants working in the merchant navy.
• Irreversible Power of Attorney from applicants who wish to consent a third person to complete the documentation process and other formalities before availing the loan.
• Sale Deed/Agreement for Sale.
• Copy of approved building plans or approvals in respect of proposed construction/ purchase/ extension.
• Non Encumbrance Paper.
• Photocopy of the land tax receipt or the building tax receipt.
• Photocopy of the Allotment letter of Housing Board, Builder or Co-operative Society.
• Detailed Cost Estimate, Assessment Report from approved valuer (if the customer is buying an existing house or apartment outright).
• Other paperwork as requested by the Bank housing loan scheme.

Features and Benefits of Allahabad Allahabad Bank Housing Loan for NRI/ Pios: