NRI Banking

  Being able to go back to a well-established house in your homeland which you can call your own – is a dream come true for many NRIs living abroad. But is it really advisable to block a huge chunk of your funds into building a house which you will use, at least in the near future, only as a second home? To resolve this dilemma, the Indian financial institutions provide NRIs with a well-designed financial system known as NRI housing loans.  What exactly is NRI Housing Loan? NRI Housing Loan is a loan provided by banks to NRIs for purpose of purchasing a land/ building/ house or property for residential purposes. NRI housing loan can also be taken for renovating or remodelling an old property or constructing a new building altogether. These loans are typically called home improvement loans.  In order to avail of an NRI housing loan, an NRI has to first and foremost open an NRI account with an authorised bank. Secondly, he or she has to partner with an Indian resident who w...

  Providing NRIs with lucrative returns without much hassle was the main objective with which the FCNR account was first introduced. This primary objective still holds.  What is an FCNR Account? FCNR stands for Foreign Currency Non-Resident Account. It is a term deposit account popularly known as an FCNR deposit . These fixed deposit accounts are opened for depositing foreign currency income earned overseas. The account is maintained in the same foreign currency as deposited.  NRIs (Non-Resident Indians) and PIOs (Person of Indian Origin) are eligible to open an FCNR account with an authorized bank or dealer.   FCNR account is more beneficial to those NRIs who are sure to repatriate their funds from the account on maturity. Also, FCNR deposits are a good option for NRIs who are looking for a secure hassle-free fund deposit option in India. You can book your FCNR Account in  US Dollars Canadian Dollars Australian Dollars Pound Sterling Swiss Franc Euro Japan...

  Financial setbacks come unexpectedly and end up delaying our plans. And it is less probable that people have the funds ready to keep their life on track. Hence, NRI Loans Against Property come to the rescue where you can keep your property as collateral and avail the funds you need. Also called mortgage loans, LAP is secured loans and gets accredited in brief times, these are taken into consideration as one in all the most dependable methods. However, there are certain rules you need to follow while availing an NRI Loan Against Property : 1. Calculate your loan amount as per your financial capability  The borrowers are advised to calculate their repayment capacity and not a larger amount. This can be done by calculation of the EMIs on the loan amount. However, many financial organizations provide 50% to 90% of the property value as the final LAP amount but your NRI Loan Against Property shouldn’t exceed 65% of your net income. 2. Go for a shorter loan repayment tenure...

Individuals require loans for multiple purposes but end up getting confused between the options. Similar confusion arises when buyers use the terms NRI Housing Loan and NRI Loan Against Property (LAP) interchangeably, when in fact, both are completely different.  An NRI Housing Loan is a high-value loan, taken to facilitate the purchase or construction of a new home. Whereas, NRI Loan Against Property is taken by keeping an already owned/existing property as security. This loan might be used later for a variety of purposes. Now let’s see how both of these loans differ.  What is an NRI Housing Loan?  Whether you want to purchase a ready-to-move-in house, land to build your house, or a property under construction, the loan you would take is an NRI Housing Loan. Banks and housing finance companies offer such loans and they are very secure. Although the buyer is needed to pay a down payment, and later he can repay the loan amount via monthly EMIs.  What is an NRI Lo...

Applying for an NRI housing loan is a good idea when you want to buy your dream property or meet your financial requirements. However, it is not as simple as it seems, especially when you are an NRI as it requires different steps to be followed and many precautions to be taken. Here we have listed down Some common mistakes to avoid while taking an NRI housing loan Mistake 1. Finalising the lender first and the property later Most of the times when people are deciding to apply for a home loan, they focus on determining their eligibility first to avail the loan. While that is not a wrong thing to do, but it is not necessary to finalize the lender just to get the loan eligibility amount. Here is an easy way for that: If you are below the age of 40 years and are earning a good income with minimum financial liabilities, you just need to multiply your yearly gross income by four and that gives the amount you are eligible to get. However, most of the banks provide loan for ready-to-m...

The outbreak of COVID-19 has had a tremendous impact on the nation's economy, especially on the  real estate market in India . Despite the slowdown in the industry during the months of complete lockdown, the buyers have become active again and the industry is witnessing an increasing demand from both, the locals and the NRIs.   As surprising as it is, the real estate industry has always been an attractive asset class offering better returns and is especially affordable and lucrative in the current scenario. Still, as the global economy is changing and the dollar is gaining strength against the rupee, dealers are observing a sudden spike in enquiries from NRIs, especially because of the competitive marketplace. Also, the reverse exodus and lockdowns have underlined the importance of having a comfortable home back in India. We know that India is gearing up for some major upcoming global investments, and personally, the NRIs are laying their eyes on the realty market too.   ...