closeHome/Support/Bank Finance

Bank Finance

India Home Loans

Shelter is one of the three prior necessities in human life. House, we prefer to call it as home, which is quite inevitable in life and also buying a home is an important event in life.

To boost the housing sector there is a need to regulate and have a greater access of credit for housing. Thus a good housing finance system is imperative. Housing Finance Companies (HFC) need to be recognized as a part of total financial system and should be given a level playing field.

The Housing Loans have become very competitive retail banking segment and the banks are attracting the customers not only by reduction in interest rates but by making changes in the scheme to suit the customer demands. Banks have been also modifying the housing loan scheme from time to time on the basis of recommendations received from the field functionaries.

The Reserve Bank of India (RBI) guidelines for loans to NRIs:

The amount given in the form of a loan is limited to 85% of the cost of the property as the remaining amount that is 15% needs to be provided an own contribution towards the cost of unit financed, less the loan amount. This amount can be remitted directly from abroad through normal banking channels or from the NRE/NRO account in India. The loan needs to be replayed including both the principal and interest as well as all charges be remitted to the housing finance company from abroad using normal banking channels, the NRE and/or NRO accounts in India.

The loan for NRIs is quite feasible, because they are well in economic resource. Definitely, the bankers see the economical stability of the applicant, and sanction a fast loan for an NRI. The options ranges vary from buying your own house from a builder or from a second owner. And the same way as an Indian Resident they provide loans for improving your existing residence. There are specific documents to be got complete information required for that specific scheme, interest rates across loan amounts and finance companies.

What are the supporting documents required while applying for the loan?

  • Residence and Age verification, which may be established from the PAN card, Election ID, Passport, Drivers license and Ration card etc.
  • Copies of I.T. returns or assessment orders or Form-16 for the two years are required.
  • Bank Pass-book of statements for the last two years.
  • Latest salary slip/statement showing all deductions in case of employed applicants.
  • Certified copies of Balance Sheets and Profit and Loss accounts, IT acknowledgments, advance tax challans (for both company/firm and personal account) for the last three years in case of self employed applicants.
  • Memorandum/Articles of Association for companies, partnership deeds for firms and a brief profile of your company/firm in case of self employed applicants.