At 18 million, the Indian Diaspora is the largest in the world. Many NRIs wish and intend to own a place in India, they can call Home. However, there are various myths and questions regarding NRI home loans which bog them. These arise primarily due to misinformation.
Read on to bust these myths and plan your way towards your dream home.
Myth 1: NRIs cannot buy property in India.
Fact: This is one of the most common myths. Since you are an Indian citizen living in a different part of the world, you are very much eligible for NRI housing loans and property ownership except for agricultural investments.
Myth 2: You are not eligible for long term loans.
Fact: You are eligible for loans just like everyone else, provided you have a stable income and a good credit score.
Myth 3: An NRI has to fly back to India to get their loans approved.
Fact: There is no need for you to fly down to India just to sign the home loan application papers; it can be done by your power of attorney based out of India.
Myth 4: Only blood relatives can have your power of attorney
Fact: This is yet another misconception. It usually depends upon the nature of the Power of Attorney.
Myth 5: Interest rate for NRI loans is higher than that of residents of the country.
Fact: This was the case earlier, but recently laws and regulations have been implemented to provide equal opportunity for residents and NRIs alike.
Myth 6: You cannot apply for joint loans in India as an NRI.
Fact: If you have family members or relatives in India that are your co-applicant for a joint loan, you can quite easily apply for loans, provided you have the right documentation and clear financial statements.
The notion that NRIs do not really require a home loan has prevailed for long enough. Realizing there is enough and more demand, the regulations have been amended to favour NRIs, making the housing dreams of lakhs of individuals come true.