Before understanding about the benefits that NRI home loans offer top builders in Delhi NCR; it is important to understand the eligibility criteria and the documents required by the banks and financial organizations to approve the loans. The minimum age criteria for the NRI to avail loans may differ from bank to bank as it can vary from 18 to 25 years. Moreover, an NRI needs to work abroad for a certain period of time and if self-employed they need to be in the foreign country for few years to qualify for the NRI loan. Also, the minimum monthly amount required for the NRI to be eligible for the loan differs depending on the country in which he or she resides.
The documents that the NRI needs to submit to the bank include:
- Three to six-month salary slips
- Appointment letter and employment contract of the company in which he or she is working
- Address proof
The NRI can submit all these documents in the overseas bank branch which are then sent to the Indian branch for processing and background verification. The NRI can repay the home loan in Indian rupees within 10 to 15 years and in some banks, the loan tenure can vary between 20 to 30 years.
Once you are well-acquainted with the eligibility criteria and other important processes for NRI home loan; you should know about the benefits that the home loan offers:
NRIs can avail up to 80 to 85 percent of the cost of the residential property as a home loan, just like the resident Indians. The repayment should be done from abroad through normal banking channels or from NRE account or NRO account in India.
An NRI who pays income tax in India and has taken an NRI home loan can avail certain tax benefits such as:
- The NRI can get a deduction on interest on NRI home loan up to INR 2 Lakhs. In case the house has been given on rent then the NRI can subtract all the interest paid in that financial year from taxable income.
- The NRI does not need to make any more tax saving investments and can claim up to 1.5 lakh in a financial year.
- The NRI can demand the amount paid for stamp duty and registration charges. This can be claimed even if he or she has not taken any NRI home loans.
- The NRI paying EMI on pre-construction phases can claim up to 2 Lakhs on interest paid on the home loan. But the same can be availed in the start of the financial year in which construction has been completed.
So, these are some of the best tax benefits that an NRI home loan can offer.
Investing in real estate is quite a popular thing amongst NRIs, not only because it is a great investment option but also because it allows them to stay in their own property when in India. So yes, NRIs can become the owners of properties in India and avail housing loans too with regard to residential properties from banks and several other financial institutions.