Apart from the usual Home Loan terms & conditions, the terms and conditions of NRI
1.Your loan tenure normally does not exceed 10 years even though some HFIs will
sanction a loan for 15 years.
2.Your own contribution for the house is made upfront at the beginning.
3.Repayment of the loan is done via EMIs which will begin only after the entire
disbursement, in case of a part disbursement. During disbursement PEMI is paid at
the applicable rate.
4.Repayment for the entire tenure of the loan is through PDCs from the NRE account
or any other account as per RBI rules and regulations. Some HFIs also allow you
to pay from your NRE account.
5.LTV Ratio and Eligibility calculations are the same for resident Indians and NRIs
though for the eligibility, more weight age is put on the following criteria.
- Current job profile
-Probability of continuing abroad for the loan tenure
-Probability of servicing the loan with an extended tenure in case you have to return
6.If you decide to rent out your house/flat, and the rented income is
More than your EM I : the money needs to be adjusted towards loan repayment.
Less than EM I : the difference must be paid out of your NRE/ FCNR/ NRO account
in India or the amount must be remitted to the extent of the shortfall from abroad