Now even the common man can dream of possessing a well furnished beautiful apartment or house thanks to the concept of home loans. The acquiring for home loans in India has become much simplified in recent years your loan approval process, faster with simplified documentation.
Door Step Service : Most of the private banks offering home loans for resident Indians personally deliver your Home Loan at your doorstep so that you need not run hither and tither to rush out & disrupt your day’s activities.
Not only there are many more attractive deals on home loans for resident Indians. The best part is that the home loan interest rates offered the banks are also quite enticing . You have an array of home loan rates to choose from. You can opt for a adjustable rate home loan or a fixed rate home loan or if you want the best of the both world you can choose the part fixed and part floating rate home loan.
Taking Home Loans is a the really easy way to fulfill your dreams building a dream home. Usually home loans for resident Indian doesn’t require much paper work and it is usually done ? quickly & without much efforts. But there are certain eligibility criterion for home loans for resident Indians that you must fulfill before your home loan application is sanctioned by the bank. You have to show proper documentation to show your source of income and hence the repayment of the loan. This applies for both service holders and self employed people.
Home Loan Eligibility For Resident Indians
There are certain other documents that you need need to produce to attain eligibility for home loans. These documents include latest salary slip and form 16 for salaried persons and last 3 years profit and loss balance sheet and last 6 months bank statement for self employed persons. And all of them need to give a residence proof too.
The home loan applicant may be issued up to 36 times of the gross monthly earnings as home loan.
The re-payment can be made as Equated Monthly Installments (EMI) through Non – Resident Ordinary account or the Non Resident External Account. For security, most banks insist that the first mortgage of the property should be in their name. If the property is under construction then adequate additional security is required such as guarantee of third party, either resident or non-resident.
Home loans for resident Indians not only allow you the joy of possessing your own house even if you have a modest means but there are quite a few tax benefits due to home loans too. There are quite a few home loan tax benefits for resident Indians that are offered by the Indian government. If you are a resident of India you are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act of 1961.
Eligibility for NRI Housing Loan in India
The Eligibility criteria of NRIs differ from Resident Indians based on a few parameters. The parameters include:-
- Payment options
- Number of dependants
The NRI Home loan seeker has to be 21 years of age and a graduate. The loan applicant has to have a minimum monthly income of $ 2,000.The Eligibility is also determined by the stability and continuity of the loan seeker’s employment or business. The NRI also has to route his EMI, Equated Monthly Installments cheques through his NRE, Non-Residential External or NRO, Non-Resident Ordinary account. He cannot make payments from another source like, his savings account in India. The Eligibility of the applicant is also determined by the number of dependents, assets and liabilities.
An NRI applicant is eligible to get a home loan ranging from a minimum of Rs. 5 Lakhs to a maximum of Rs 1 crore, based on the repayment capacity and the cost of the property, which although is variable by the priorities of the home loan provider.
Home Loan Tenure for NRIs is different from Resident Indians. An applicant will be eligible for a maximum of 85% of the cost of the property or the cost of construction as applicable and 75% of the cost of land in case of purchase of land, based on the repayment capacity of the borrower. A NRI can enhance his loan Eligibility by applying for home loans with a co-applicant who has a separate source of income.