Q.1015: Are NRI & OCI holders Eligible for Bank Loans in India?
Question: I am an OCI card holder am I eligible for a loan in India. Jayashree R Rao Answer: Yes! NRIs, OCI holders can get loans from Indian banks as long as they qualify for the loan. Generally home loans for properties located in India are what OCI holders usually apply for. As long as an applicant for a home loan qualifies, they can generally get up to 75% of the property cost financed through bank loans. Banks will generally ask for proof of income of applicants, their passport and residency status proof as well as property details of the property for which the loan is required. Loans for other purposes are also available as long as the applicant meets the banks qualification to dispense the loan. OCI holders may not be aware but interest rates on loans in India are probably a lot higher than they would expect to pay abroad. Banks in India also charge a loan processing fee which may vary from bank to bank, some banks charge up to 1% of the total loan amount which can add up to a tidy sum, a 50 lakh housing loan @ 1% works out to a loan processing fee of fifty thousand! Here is what a popular bank in India says on their website regarding their processing fee: Processing fee: A total of 1% of the loan amount sanctioned or Rs. 10,000, whichever is higher, will be applicable as Processing Fee (plus service tax). The fee will be collected in two parts: Rs. 5,000 + Service Tax is to be paid upfront along with the loan application and the balance Processing Fees amount + Service Tax is to be paid before disbursal of the loan. Processing Fees paid is non- refundable.NRI Loans in India
Foreigners of Indian Origin, OCI holders and NRIs in the market to get a home loan may have some need to satisfy loan eligibility set by banks which they may not be aware of. For example banks may have conditions such as Minimum age of the applicant should be 24 years. Maximum age limit is 60 years For NRI home loans banks may also want a General power of attorney, something that should not be taken lightly by non-residents.
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional
accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been
stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail.
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Q.1015: Are NRI & OCI holders
Eligible for Bank Loans in India?
Question: I am an OCI card holder am I eligible for a loan in India. Jayashree R Rao Answer: Yes! NRIs, OCI holders can get loans from Indian banks as long as they qualify for the loan. Generally home loans for properties located in India are what OCI holders usually apply for. As long as an applicant for a home loan qualifies, they can generally get up to 75% of the property cost financed through bank loans. Banks will generally ask for proof of income of applicants, their passport and residency status proof as well as property details of the property for which the loan is required. Loans for other purposes are also available as long as the applicant meets the banks qualification to dispense the loan. OCI holders may not be aware but interest rates on loans in India are probably a lot higher than they would expect to pay abroad. Banks in India also charge a loan processing fee which may vary from bank to bank, some banks charge up to 1% of the total loan amount which can add up to a tidy sum, a 50 lakh housing loan @ 1% works out to a loan processing fee of fifty thousand! Here is what a popular bank in India says on their website regarding their processing fee: Processing fee: A total of 1% of the loan amount sanctioned or Rs. 10,000, whichever is higher, will be applicable as Processing Fee (plus service tax). The fee will be collected in two parts: Rs. 5,000 + Service Tax is to be paid upfront along with the loan application and the balance Processing Fees amount + Service Tax is to be paid before disbursal of the loan. Processing Fees paid is non- refundable.NRI Loans in India
Foreigners of Indian Origin, OCI holders and NRIs in the market to get a home loan may have some need to satisfy loan eligibility set by banks which they may not be aware of. For example banks may have conditions such as Minimum age of the applicant should be 24 years. Maximum age limit is 60 years For NRI home loans banks may also want a General power of attorney, something that should not be taken lightly by non-residents.
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