In today’s world, properties are undoubtedly the most valuable tangible assets a person can own. They stand to serve as an important source of liquidity when there is a dire need for money. Be it for personal expenses or business requirements, these funds can be accessed by Indians and Non-Resident Indians (NRIs) alike by simply taking a loan against their property, without having to sell it.
In fact, the process for availing a loan against a property does not vary a lot for an NRI and a citizen of India, owing to customer-friendly banks in the country. Many prominent lending institutions in the country offer the facility of loan against property to NRIs at attractive interest rates and minimal paperwork. As long as an NRI owns a residential/commercial property in his/her name, that person can easily borrow against his property.
If you are an NRI and are looking to take a loan against your property, then you should go through the following steps to take advantage of the wonderful features and benefits that the premier lending institutions in the country have to offer.
Step 1: Research The importance of this step cannot be emphasised enough. Considering that there are plenty of banks out there which offer this product, it stands to reason that you should research thoroughly and find the banking partner that suits your purpose. Each bank will have their own set of interest rates, the quantum of loan, lending terms and conditions, repayment options, maximum tenure, et cetera.
Hence, it is crucial that you choose to borrow from a bank to which you can afford to pay back comfortably, without the loan turning into a serious liability. You can always get in touch with the customer care representatives of the bank or visit the nearest the branch to learn more about taking a loan against property as an NRI.
Step 2: Gather the Necessary Documents
There is little doubt in the fact that loan applications are usually accompanied by a whole bunch of documents. This is particularly true if you are an NRI. That’s why, in order to make the process easier, prepare the required documents in advance and keep them with you. The list of documents needed can be found on the respective website of the bank, but as a general rule of thumb, you can be expected to furnish the following papers:
Identity proof and address proof like passport, PAN card, driving licence, latest utility bills, et cetera
Income proof, which may vary for salaried and self-employed individuals
If Salaried, you may have to furnish copies of your passport showing the relevant visa stamps, along with a copy of your work permit/work visa/any relevant document which supports your status as an NRI working individual. Latest salary slips, overseas bank account statements in which salary is credit may also be required
If Self-Employed, you may be asked to submit a copy of your trade license/similar document, along with the balance sheet, profit & loss account and income computation for the last three years performed by a certified Chartered Accountant. In addition to this, a self-attested document stating the nature of your business, along with the copy of your passport with the relevant visa stamp may be also be needed
Photocopies of relevant property documents
Step 3: Apply for the Loan Against Property
After you have performed the aforementioned steps, all that is left to be done is to apply for the loan. You can do this online with most of the banks, though sooner or later, you may have to visit the bank in person and submit your documents.
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I have taken INDUSIND home loan because my friend suggested it to me.The tenure of the loan is for 17 years with an interest rate of 11.5%. For submission of documents i have to run up and down apart from that it was fine.But it would have been good if the procedure is little short and not to deduct any installment from account without clearing the check first.
Before 4 years ago, purchased my home loan from LIC Housing finance. Due to the low interest rates, i have selected LIC Housing. Taken the loan amount of Rs. 14 lakhs and i am paying the EMI amount of Rs. 12940 per month. Total duration of the loan is 15 years.
I have taken home loan directly through Tamilnad Mercantile Bank.The rate of interest and the processing fee was high .This loan was sanctioned on time and i have uploaded the documents through online . The service was average according to my concern.
I have taken home loan directly through SYNDICATE BANK. The rate of interest and the processing fee was nominal.This loan was processed on faster basis without any hassles.They gave a clear picture about the loan process .There was proper notification from bank end and i am satisfied with the service .
Long back ago, i have taken the home loan from GIC Housing finance. Its because of the immediate process, i have selected this bank. Interest rates were normal because it was 8.35%. I bought the loan amount of Rs. 2.5 lakhs and the documentation process was hassle free. I have chosen a duration of 10 years to close this loan. I have already close the loan 5 years before and they have given me a NOC letter also.
I have taken home loan directly through SBI .The rate of interest was nominal and this loan is still active .Everything was good to me when availed this loan .The loan process was clearly shared by the agent .I am really satisfied with the service . Without any hassles got this loan.
At an Initial I took home loan from DHFL on sudden from their end transferred the process to INDIA BULLS without any intimation. But one issue was faced that my documents not submitted to INDIA BULLS hence I have submitted again. The amount sufficient was fine. EMI need to pay of 36K. The rate of interest is started with 8.35% gradually increased hence on last months was 8.90%. Their service is not good coordination with me.
If any of the builder suggest to go for this bank don't ever go for it... For every 6 months they increase the ROI even RBI is decreasing... Pre closer is a hell for me ...bi have provided a cheque after 15 days they started processing the request to close... From my pocket I paid 30000 rs extra for closing...
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Ashok Kumar NV
Reviewed on Mar 11, 2020
I took home loan from INDIA BULLS, some people suggested to take a loan from this bank so chosen it. They have sanctioned the loan amount of 15L with tenure period of 15 years. Rate of interest is nominal. EMI need to pay of 17K. The processing fee is applicable. Since I am going to buy a plot so taken this loan offer.
My home loan was taken from LIC Housing because their processing time and charges are less but interest rate is little bit high when i compared to other Government banks. They have taken 1 week to sanctioned the loan. Documentation process is as usual like other banks. They have provided me a interest rate of 8.45%.
I have taken home loan directly through Union Bank Of India .The rate of interest and the processing fee was nominal and submitted documents through the agent ,This loan is still active and i have taken this loan for home construction. There are more hidden charges which was informed later this was the only issue. I have been informed that will receive Rs.7000 to 8000 due to good credit score but it was not happened.
HDFC people guided to take Pradhan Mantri scheme for the home loan. The amount was sanctioned of 25L and subsidiary amount of 2.67L. The tenure period of 20 years. An interest rate was fine of 8.5%. Pre closure is applicable with nominal charge. The process was good hence they have sanctioned the loan within 20 days. EMI need to pay of 22413 rupees.
From LIC, they offered a home loan and the loan amount was Rs. 27,00,000. The rate of interest was high 9.15% with the duration period of 20 years and i am paying EMI of Rs.24,000 and they given this loan very faster . LIC have a good customer service.
I got home loan offer from HDFC Limited on one year back. I applied via online, the amount was sufficient with tenure period of 15 years. The rate of interest is moderate. I took this loan to buy an apartment. EMI need to pay of 36K. Pre closure is applicable but there is locking period of 6 months. Their service is good.
I have taken home loan directly through Hdfc Ltd.The rate of interest and the processing fee was nominal.This loan was processed on faster basis without any hassles.The agent gave a clear picture about the loan process .There was proper notification from bank end and i am satisfied with the service .
I took home loan from MAGMA HOUSING FINANCE on 6 months back , the loan duration of 20 years for the amount of 18L. The amount was sanctioned by one month. To buy the flat taken this loan. EMI need to pay of 15,600 rupees. There is pre closure is applicable. The customer service is good.
I bought my home loan from Fullerton but an interest rates are high. In the call centre, there is no proper response for any kind of inquiry and if I sent a mail only they will send the reply after 48 hours. They have sanctioned the loan amount of Rs. 10L and they have not provided the loan as per their committed time.
In HDFC, they were forcing me to taking a home insurance when i availed my home loan. Its just because of my landlord person since he was having their existing loan with HDFC hence have continued the same. They have offered me an interest rate of 9.25% and i need to pay the EMI amount of Rs. 10000 for the loan amount of Rs. 10 lakhs.
I purchased a home loan from Axis bank in the year of 2011 Just because of my salary account is with them. I have taken the loan amount of Rs. 7.5L and I have chosen the tenure period of 20 years. To sanctioned this loan almost they took 10 to 15 days. Since I'm a salary account holder, the documentation process was quite high. I pay EMI amount of Rs. 7000 on a monthly.
I have taken yes bank home loan directly through bank. The rate of interest and processing fee was nominal and the loan got sanctioned on proper time .This loan is still active and documents submitted through agent and the loan process was clearly shared by the agent .