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  • Federal Bank NRI Home Loans

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    Federal Bank NRI Home Loans

    Owning a home is a dream for many of us, but making it a reality proves to be difficult with the rising cost of homes as well as the associated costs that come along with them. Many prospective home buyers are put off by these hurdles and have to postpone or abandon their dream of owning a home. Home loans are now being offered to individuals to help them build or purchase a home or land to construct a home. Most of these loans are only available to Indian residents, making it difficult for those who are of Indian origin and not living in India to purchase a home.

    Federal Bank has introduced home loans tailored for NRI’s and those of Indian origin so they too can avail of home finance. Federal Bank has been providing finance solutions and the best quality service ever since its inception. It was established as the Travancore Federal Bank in 1931 and has been a banking pioneer in Kerala. It has steadily expanded its scope and now provides a range of services catering to Indian residents as well as NRI’s.

    Features of Federal bank NRI Home Loans:

    Federal Bank has a range of loan products catering to the NRI market. The features of its loans are mentioned below:

    • Speedy loan sanction and disbursement
    • No hidden charges
    • Minimal paperwork required

    NRI’s can apply for any of the following home loan options:

    Federal housing Loan: this loan can be availed for those PIO’s or NRI’s looking at purchasing a plot of land to build a home, to build a new home or to buy an apartment/home. The maximum loan amount that can be availed is 85% of the project’s cost, but the figure cannot exceed Rs. 1500 lakhs. The loan can be repaid over a 20 year period at reasonable rates of interest.

    Federal Property Power: Individuals who own a plot of land can choose to take a loan against their property, whether it is residential or commercial. The maximum amount provided as loan is 50% of the property, with the amount not exceeding Rs. 5 crore, repayable over a maximum period of 15 years. The loan can also be availed as an overdraft.

    House Warming Loan: this is a unique loan offering from Federal Bank for its NRI and PIO customers. This loan does not have a lock in facility and does not require a security against loan to be provided. They can avail a loan for additional household expenses such as housewarming etc, and are eligible for a maximum loan amount of 5% of the property’s estimated cost, not exceeding Rs. 2 lakh. The loan amount can be repaid up to a maximum of 5 years.

    Federal Bank NRI Home Loans Eligibility:

    Those applying for a home loan have to meet the following eligibility criteria:

    • Should be above the age of 21 years and below 60 years of age.
    • Non-resident Indian holding a valid Indian passport or a Person of Indian Origin (PIO) with a foreign passport.
    • Should have a regular income source.
    • Minimum income should be Rs. 5 lakh per month abroad.

    Federal Bank NRI Home Loan Interest Rate:

    The rates of interest applicable on the home loans are mentioned below:

    Loan Type Interest rate
    Home loan up to Rs. 75 lakhs (floating) 9.68 % - 9.83 %
    Home loan above Rs. 75 lakhs (floating) 9.98 % - 10.08 %
    Property Power Loan (fixed) 13.48 % - 14.88 %

    Documentation Required for Federal Bank NRI House Loan:

    Home loan applicants who meet the eligibility criteria have to submit documentation detailing their financial history to the bank for the purpose of verification. The bank does this to ensure the applicant is able to repay the loan amount. The documents to be submitted are as follows:

    • Application form filled in and signed
    • Proof of identity- valid passport copy
    • Proof of address copy
    • Passport sized photographs of applicant and co-applicant
    • Valid visa copy

    Income proof:

    • NRE account statement for the previous 2 years
    • Embassy attested salary slips (for salaried applicants)
    • Profit and Loss statements, balance sheets for 2 years (for self-employed/non-salaried applicants)

    Property Documents:

    • Title deed and prior deeds
    • Most recent land tax receipt
    • Possession certificate
    • Approved building plan
    • Sale agreement/ sale deed
    • Most recent building tax receipt
    • Other documents as requested by the bank on a case-to-case basis.

    Federal Bank Home Loan EMI Calculator:

    Applicants who are looking at taking out a loan to finance the purchase of a home/plot of land or renovation can check the monthly repayment amount with the help of Federal Bank’s EMI calculator. Applicants can visit the bank’s official website and enter the loan amount, the loan tenure as well as the rate of interest to generate the monthly instalment figure.

    Loan Security:

    The security to be provided when applying for a home loan is as follows:

    • The property for which the loan is being taken.
    • Immovable property (in the case of Property Power loan).

    Loan Repayment:

    Applicants have been provided with a variety of repayment options, allowing them to choose the one most convenient for them. NRI home loans from Federal Bank can be repaid over a maximum period of 20 years through any of the following channels:

    • Standing instructions at the bank branch
    • Cheque
    • Mobile banking
    • FedNet- online Federal Bank platform
    • Automated payments through ECS

    FAQ’s:

    1. What additional charges do I have to pay for my Federal Bank home loan?

      The additional charges to be paid are as follows:

      Processing fees- 1% of the sanctioned loan.

      Early closure penalty- 2% of the outstanding balance or DP, whichever is higher.

    2. Can I avail a Property Power loan along with a home loan?

      Yes, you can avail a Property Power loan along with your regular home loan and enjoy a reduced rate of interest and security margin.

    3. What documents do I have to submit with my home loan application?

      The following list of documents have to be submitted with your application form:

      • KYC documents
      • Property documents
      • Income proof

      Any other documentation requested by the bank

    4. Who can I use as a co-applicant for my home loan?

      For NRI individuals applying, a spouse can be used as a co-applicant so long as they are not legally separated. For unmarried applicants, parent or close relatives can be listed as co-applicants.

      For PIO applicants, a close relative/spouse residing in India can be listed as a co-applicant.

    Federal Bank NRI Home Loan Reviews

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