Having a property is always proved as beneficial. Nowadays it is considered one of the most valuable real assets. In an emergency, it works as a liquid source of money to fulfill the requirement. In order to meet the business requirement or personal requirement, one can easily opt for a loan against their property, whether he is an Indian or a non-resident Indian or NRI.
In fact, the procedure of availing a loan against property for an NRI is more or less the same as the process of a person with Indian citizenship. There are several customer-friendly banks in India that offer an NRI loan against property with an attractive rate of interest an all it requires is minimal paperwork. If an NRI has a property in India, he or she can easily avail a loan against his or her property, whether it is personal property or commercial property.
When we think of getting a loan against property, there are several questions that come in our mind such as how much I can avail of the property value? Or what will be the time period for which I will get the loan? The same things also happen with NRIs. if you are mortgaging a personal property, you can avail up to 55% of the property value, which is the maximum limit. It will become 45% in the case of commercial property maintaining its highest margin. The duration for which you will get the loan will be a minimum of three years and a maximum of 10 years. One needs to clear the loan within the time period, otherwise, the bank will forfeit the property.
There is certain eligibility one needs to fulfill in order to get an NRI loan against property.
- Any NRI who is willing to apply for an NRI loan against has to be under a fixed source of income. He or she can be salaried or self-employed. In order to meet the eligibility, the applicants must hold an income above the minimum limit.
- There are different income requirements for different countries. Any NRI, who belongs to Middle East countries, should have an income of AED 3,00,000 (UAE Dhms) per annum, while for the USA and other countries, it is USD 80,000 per annum and for Merchant Navy, it is USD 50,000 per annum. All these limits are the minimum limit.
- If an NRI is keen to apply for an NRI loan against property, he or she has to arrange a co-applicant, who should be any blood relative of the applicant. The co-applicant must be a citizen of India, otherwise, it won’t count.
We all know that in order to apply for any loan we also must keep a bouquet of documents ready. In order to proof our, identity, residential address, income, the bank asks us to submit photocopies of some document to start the procedure. Here are the list of documents that one needs to submit, in order to get an NRI loan against property-
- Identity proof: In order to prove your identity, some documents are required, such as Permanent Account Number or PAN card, passport, driving license etc. The latest utility bills that you have paid will also be considerable.
- Income proof: One also needs to provide income proof to the bank. The list of documents required to prove your income standard are different for self-employed and salaried NRI.
If you run a business or in other words you are self-employed all you need to provide are a copy of trade license or equivalent document, profit and loss account, balance sheet and income computation of the last three years prepared by a qualified Chartered Accountant. Along with all these documents, you may have to give a self-attested letter stating the type of your business with a photocopy of passport along with the relevant visa stamp. In case you are a salaried person, photocopies of your passport with the relevant visa stamps, your work permit or work visa or any relevant documents that support your NRI working status. In addition to this, the latest salary slip and the overseas bank account details, where the salary gets credited also can be asked to submit.
So before applying for any loan do your homework and research properly. There are several banks out there that are giving NRI loans against property with an attractive rate of interest. Compare the interest rates and other facilities provided by the different banks, read the terms and conditions properly then choose the most suitable one and start the process.