7 Myths about NRI Home Loan busted!

 India is one of the countries in the world with the largest number of people residing outside the country. The number is higher than you think- 16 million! Despite such a vast number, there are various myths about NRI home loans. Lack of information, awareness, and misinformation is to blame for this. 


Let’s bust some of these myths and become financially educated.


1. Myth: NRIs cannot buy property in India.

Fact: This is one of the most common myths among the NRIs. Since they are Indian citizens living in a different state, they are eligible for NRI housing loans and property ownership except for agricultural investments. You can very quickly buy property provided you have a proper loan application and documents. 


2. Myth: You are not eligible for long term loans.

Fact: The only factor that influences your loans would be your financial stability. You are eligible for loans just like everyone else, provided you have a stable income and a good credit score. The NRI home loan interest rates are almost similar to citizens of the country in which you reside.


3. Myth: NRI entrepreneurs cannot apply for business loans.

Fact: It is easier for salaried employees to apply for loans than self-employed individuals. But, if you can show income proofs, you can easily apply for loans for your business similar to residents.


4. Myth: An NRI has to fly back to India to get their loans approved.

Fact: There is no need for you to fly down to India just to sign some papers; it can be done by your power of attorney, who is based out of India. With the world going digital each day, most banks even allow online signature, which does not need your presence. 


5. Myth: Only blood relatives can have your power of attorney

Fact: This is yet another misconception. Few banks allow you to choose your power of attorney despite blood relations. Few banks still require blood relatives to be your power of attorney.


6. Myth: Interest rate for NRI loans is higher than that of residents of the country.

Fact: This was the case before, but recent laws and regulations are implemented to provide equal opportunity for residents and NRIs alike. NRIs today have the almost same rate of interests as that of the residents of the country. 


7. Myth: You cannot apply for joint loans in India as an NRI.

Fact: If you have a family member or relatives in India that are your co-applicant for a joint loan, you can quite easily apply for loans. This is never a thorn in your path, provided you have the right documentation and transparent financial statements. The loans can be for a home loan or any other type of loan.


The notions of NRIs are well off and do not require a loan have prevailed to date and is untrue. NRIs, similar to any Indian residents, need home loans. The rules for home loans for NRIs have favored the NRIs, making the housing dreams of lakhs of individuals real. At the same time, there is a need for education and financial literacy. These are the above mentioned seven myths about NRIs home loans that you should look out for. 

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