Why the NRI home loan is the best option for you?

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 a shorter repayment tenure and a higher principal amount.

Shorter Tenure:
When a home loan is provided, a 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.