Plenty of individuals from India have settled abroad for various reasons ranging from settling abroad, better work environment or even for studying purposes. Although these individuals have settled abroad, they would still like to maintain some form of attachment or tie, back to their families or home countries. This may include investing in a property near the family home, renovating a property belonging to them, or even investing in a vehicle.
The financial market of India has recognized this need and requirements while focusing on means to tap the NRI market. Therefore, they have created liberal criteria to evaluate the request for the various loan categories that includes age, tenure, and income amongst many others. With the NRI loans, the minimum age of the applicant must be 21 years with the maximum at 60 years. In addition to this, the tenure of the loan is often less as compared to the local loans offered to Indian residents. Additionally, the annual income of the applicant must be over 40,000 USD. However, it can vary as per the policy of the individual’s bank.
Here are some of the popular NRI loans, and how you can benefit from it:
This is one of the most popular NRI loans. As in plenty of cases for most expatriates, most NRI’s would like to maintain some connection with their homeland. What better way to do so, than by investing in a property, in India? Plenty of banks and financial institutes have recognized this desire and have created a variety and diverse schemes, suited to the needs of NRI’s. Therefore, such a home loan makes sense for any NRI to utilize to their advantage.
Home improvement or renovation loan
At some point in life, every property will need to undergo renovation or repair work. For certain individuals, it can be an expensive affair, which can go well beyond their means or affordability. Additionally, opting for a local home renovation loan may not be sufficient, especially regarding repayment. In this case, any individual within the family who is working or settled abroad can opt for NRI loan specialized in home improvement or renovation. Before applying for this loan, however, the applicant must check the criteria for it, as it can differ from one institute to another.
In the case of vehicle loans for NRI, the criteria can differ from bank to financial institute. While some institutes will provide NRI loans to the NRI themselves, they may still request for a resident Indian to stand as a guarantor. Alternatively, some institute will allow NRI’s to become a guarantor while availing the loan under the name of an Indian resident. In this case, although the NRI’s status on the loan application is as a guarantor, the individual may be required to pay the EMIs.