There is no better way to keep in touch with your roots of
your childhood than by purchasing a home in your home country. No matter which
part of the world you are located; you can easily approach a bank or financial
institute and get the dream home anywhere you want.
But before you take such a step there are certain things you
will need to consider. No doubt, factors like location, property type and
funding will be needed to be taken into consideration. With ample research, one
can easily settle on the location and property depending on your choice.
However, when it comes to funding, there are various options to consider. While
you can save up your income and funds to invest in a house, you will be
depriving yourself of other opportunities wherein you can invest your funds for
more beneficial returns. One such option includes the NRI home loan. So why is
this option a beneficial one? let us take a look at them:
Rate of
Interest:
All loans are charged with a rate of interest. However, this
rate of interest not only differs from institute to institute, but also to the
loan type. This is no different from the NRI home loan. For the standard home
loan, the rate normally ranges in between 9% to 12%. However, with the home
loan for NRI's it is over 0.25 to 0.5 % more. Although it may seem a bit
expensive, it actually comes with shorter repayment tenure and a higher
principal amount as well as for Home
Loan Balance Transfer.
Shorter
Tenure:
When a home loan is provided, repayment tenure is normally
calculated on the rate of interest and principal amount. This repayment tenure
for a standard home loan can last anywhere between 15 to 30 years. However, for
NRI home loan the repayment the tenure is between 5 to 15 years. This is
because NRI's have a greater capability to repay the borrowed amount, as
compared to other applicants.
Loan
amount:
Normally, when you apply for a home loan, banks or financial
institutes will offer a loan amount that covers a percentage of the home cost.
For a standard home loan, you can get approximately 60 to 70%. With a home loan
for NRI's you can get at most 90% of the whole property. However, this solely
depends on the borrower's gross monthly income.
Method of
repayment:
Most financial institutes and banks only accept repayment
through the NRI accounts. This makes it easier for both the bank and the
account holder to manage the funds. Additionally, it also makes it convenient
for the account holder to access and transfer funds from the foreign currency
to the local currency.
In the end, you can see there is considerable difference
between the standard home loan and the NRI home loan. All you need is the
proper planning strategy and repayment funds to ensure that you can get your
dream home easily today.
[Source: http://www.sooperarticles.com/finance-articles/why-nri-home-loan-best-option-you-1467638.html?]
