For many NRIs, the idea of securing a home loan in India may seem complex. However, with streamlined processes, competitive interest rates, and tailored home loan options, it is easier than ever for NRIs to invest in real estate back home. This article aims to debunk some NRI home loan myths.
NRI Home Loan Myths
1. Overseas Citizens Cannot Secure a Home Loan in India
One of the most common home loan NRI myths is that overseas citizens cannot secure a housing loan in India. Today, many reputed banks, NBFCs, and financial institutions offer home loans to overseas citizens. Overseas citizens are individuals who hold dual ownership. Their Indian citizenship makes them eligible for home loans in India. However, securing a loan is only possible if one meets all the qualifying criteria and
2. NRIs Cannot Opt for Long Tenor Loans
NRIs can easily avail of low home loan interest rates and long-tenor loans. In fact, many banks and NBFCs even give NRI home loan borrowers 20 to 30 years to ensure ease of repayment.
3. NRIs are Not Eligible for Joint Home Loans
For joint home loans, two or more people are responsible for the repayment of the loan. If both people have excellent credit profiles, lenders know the risk of a loan default is minimal. Consequently, lenders extend joint home loans to such individuals on the best possible loan terms and conditions. However, many NRIs have been made to believe that they are ineligible for joint home loans. This is a myth — NRIs can secure joint home loans in India. The only requirement is that their co-borrower must be an Indian citizen and a co-owner of the property.
4. You Will Be Charged Higher Home Loan Interest Rates
Yet another myth that people have regarding NRI home loans is that NRIs are charged higher home loan interest rates compared to Indian citizens. However, NRIs can avail of home loans at competitive interest rates. NRIs planning to avail of home loans must do proper research and choose to go with a financial institution offering them a good home loan interest rates alongside other beneficial loan terms and conditions.
Conclusion
In conclusion, the NRI home loan landscape has transformed significantly over the past few years. With favourable regulatory policies and competitive interest rates, NRIs can now easily fulfil their dream of owning a home in India.
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