Properties are one of the most valuable assets that you can own. They are your important source of liquidity when you are in urgent need of funds. When you own a property, you need not sell it to meet your money requirement rather pledge the same with the lender while remaining the owner of the property. You get the funds against the pledged property and this act of pledging the property for funds is referred to as Loan Against Property (LAP) or Mortgage Loan. Both resident Indians and non-resident Indians can avail of the benefits of LAP loan in India.
Mortgage Loan In India For NRI
The NRIs (non-resident Indians) & PIOs (person of Indian Origin) owning a residential or commercial property in their names can also avail a mortgage loan in India at attractive interest rates starting from 7.70%* p.a. with flexible repayment tenures of up-to 15 years to meet their varied needs of funds. The process to avail of a mortgage loan for NRI is similar to availing of a mortgage loan by a citizen of India.
There are many lenders- Banks/NBFCs/HFCs which provide the mortgage loans for NRIs at attractive interest rates, prominent among them are, ICICI Bank Ltd., Axis Bank, Federal Bank, Bank of Baroda, IndusInd Bank, etc.
Prominent Features Of NRI Loan Against Property
- Both residential and commercial properties are accepted as collateral.
- Quick, easy & hassle-free processing of NRI LAP loans in India.
- The loan amount can be used for a variety of personal & professional needs.
- Low mortgage loan interest rates for NRIs starting from 7.70%* p.a. onwards.
- Longer repayment tenures are available for 15 years.
- Availability of fixed and floating interest rates.
- Minimum closure charges.
- Loan up-to 60% of the market value available.
- Can apply for a mortgage loan online.
- Appoint a POA and no physical presence is required to make a mortgage application.
- Can jointly apply for a mortgage loan.
- Mortgage pre-approval loans available.
Also Read: Everything You Must Know About NRI Home Loans.
NRI Mortgage Loan Eligibility Criteria
The two most important factors which decide the eligibility of an NRI are his income per month and the actual valuation of his property. FOIR & LTV are the deciding parameters for mortgage loan eligibility. The other important factors include age, CIBIL scores, repayment history, number of obligations, employment details and the country of employment, loan tenures, etc.
Details Of NRI Mortgage Loan In India
|Eligible Profile||* Salaried NRIs & PIOs.|
* NRI within the age group of 24 years – 65 years or the retirement age whichever is earlier.
* NRI having a valid Indian passport.
* NRIs having regular employment for a minimum of 1 year.
* NRI holding a valid job contract/ work permit for a minimum of 2 years in the foreign country.
* NRI is not a citizen of the countries namely- Iran, North Korea, Cuba, Syria, Sudan, and Creamia regions of Ukraine, Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Nepal, Macau, Nigeria, Hongkong, or Bhutan.
|Loan Amount||Rs. 5 Lakhs – 10 Crores|
|Property||Residential or Commercial|
|Loan Tenure||Up-to 15 years|
|Interest Rate||* Can be fixed or floating. |
* Range from 7.70% p.a. – 13.85% p.a.
|Processing fees||Up-to 1% of the loan amount + applicable GST.|
|Foreclosure Charges||2% – 5% of the outstanding loan amount.|
|LTV||Up-to 60% of the market value of the property.|
|Minimum Income||* Middle East Countries – 84,000 AED p.a. – 3,00,000 AED p.a. |
* USA & Other Countries – 42,000 USD p.a. – 80,000 USD p.a.
* Merchant Navy – 26,000 USD p.a. – 50,000 USD p.a.
What Is The Interest Rate For Loan Against Property For NRI?
Find below the NRI Mortgage Loan Comparison chart of the leading lenders.
|NRI mortgage loan interest rate ICICI Bank||7.70%* p.a. onwards.|
|NRI loan against property interest rate in Axis Bank||11% p.a. Onwards.|
|NRI loan against property interest rate Bank of Baroda||8.20% p.a. – 13.85% p.a.|
|NRI loan against property interest rates in Federal Bank||10.10% p.a. onwards.|
|NRI loan against property interest rates in IndusInd Bank||8.65% p.a. – 12.60% p.a.|
Importance Of POA In NRI LAP Loan
A POA (power of attorney) is the resident Indian appointed to act on behalf of the NRI through execution of a deed i.e., POA. The POA lists out the power to the POA holder to manage the property and property-related matters in the absence of the NRI.
* The POA holder must be a co-applicant to the loan.
* The POA holder must be a citizen of India.
* The POA holder must be within the age group of 24 years – 60 years.
NRI Mortgage Loan Transfer
An NRI can transfer his existing mortgage loan to a new lender. Generally, a loan is transferred to enjoy the interest savings, avail of longer repayment tenures, or to apply for an additional loan. An NRI can also choose to transfer his LAP loan if he is unhappy with the services (generating loan statement, generating the LOD- list of documents, loose responses, etc.) of the existing lender. The interest rates for NRI mortgage loan transfer start from 7.70%* p.a. However, it is important to evaluate the savings over the mortgage transfers. When a loan is transferred, once again all loan charges are applicable. Also, the existing lender may charge with a pre-closure charge of 2% – 5% on the loan amount. (CLICK to get the complete list of charges). Therefore, it is important to know if it is worth transferring a mortgage loan to a new lender.
|Transfer your loan against property @ lowest mortgage rates starting from 7.70%* p.a.|
Also Read: NRI Home Loan Transfer.
NRI Mortgage Loan Top-up
A top-up is the hassle-free best option to opt for when there is a need for emergency funds. It is easy to apply for a top-up loan especially when the lender is assured of your loan repayments. Also, you get an opportunity to avail of additional loans at lower interest rates compared to unsecured personal loans. (Read more on the difference between a personal loan & a loan against property.) A top-up can be availed within 7 working days of the application. The loan amount can be used for a variety of personal & professional uses. A top-up amount is subject to LTV & income eligibility. The top-ups are offered at LAP interest rates. The interest rates for loan against property top-up loans starts from 8% p.a. Read more on loan against property top-up loans.
Compare LAP top-up loans with home loan top-up loans of the 3 best lenders.
NRI Mortgage Loan Documentation
- KYC – Pan Card, Aadhar Card, Indian & Overseas address proof.
- Income Documents – Last 4 months salary slips, 6 months bank account statements, Appointment letter, Employment continuity Proof.
- Property Documents – Property chain agreement, OC/CC + Plan copy, Index 2, Share certificate, Society registration certificate, latest property tax & maintenance bill.
-> Research to find out the best lender that best suits your purpose. Each lender has its own set of interest rates, list of charges, eligibility criteria, lending terms, repayment tenures, etc.
-> A co-applicant in NRI loans must be a resident in India.
-> An NRI must hold an NRE/NRO account in India
-> The minimum salary requirement for an NRI to apply for a loan against property in India will differ from lender to lender.
-> ICICI NRI loan against property requires a minimum salary of only $42,000 p.a.
-> Currently, a loan against property for NRI in HDFC Bank is not available.
-> NRI loan against property ICICI Bank provides the best interest rates for NRIs starting from 7.70%* p.a.
|Mr. Achyut invested in a house with the lowest interest rate loan. And You? Explore Home Loans|
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