Tips For Selecting The Best From NRI Loans In India

As a non-residing Indian who is working abroad, there are several opportunities to earn and invest with high returns. This also includes the NRI loans in India. There are different kinds of NRI loans, each with different features and different requirements. However each different option has their own set of rewards and risks which should be considered when applying for it. Here we give you the different tips to select the best for all the different loans in India.

• NRI Home Loan

Purchasing your own home in your home country is easy with the NRI home loan. Through this loan, you can purchase a residential hours which is either under construction or on reseal. You can even construct your own house on a purchase of residential property. With the right rates and requirements, you can avail of at most 85% of the total cost of the residential property as the home loan. You can make the payments through direct remittances from abroad from selected NRI accounts. However, there are certain factors that need to be taken into consideration when applying for these NRI loans in India. You must satisfy pre requisite conditions like certain qualifications, current job profiles, past experience, probability of job continuation for the duration of the loan tenure and even probability of servicing the loan with extended tenure in the event of return to the home country. Even the loan to value (LTV) ratio for the customers vary from bank to bank.

• NRI Loan Against FD

 A fixed deposit has several benefits. You can utilize the funds of this termed deposit even without breaking it. One way of doing so is to take an overdraft facility against the fixed deposit. You can use the funds for only personal reasons like business activities, except agricultural related activities or real estate business. It can also be used to invest in selected Indian companies. It can be used to invest in residential properties too. For this particular type of NRI loans in India, the overdraft facility can be taken on any of the termed deposits of the NRE, NRO or FCNR accounts. The loan amount will normally be around 90% of the loan, depending on the LTV ratio. However with the FCNR account it varied between 70 to 90%.  Normally, the interest rate on the overdrawn amount is around 2-2.5 per cent over the fixed deposit rate.

• NRI Loan Against Securities

If you hold any shares in the Indian market, you can easily take a loan against these shares. In such a process, you will only pledge your shares to the bank, without relinquishing the hold on the shares. Normally the loan to value is 50%, due to the volatile conditions of the market. In such a loan application, the interest rates are much lower due to the fact it is a secured loan.

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About the Author

nehash141

Neha Sharma is a finance student who loves to write in her free time. She is well experienced with the different NRI loans in India. Through... (show bio)