NRI Keralites, like other NRIs all over India, look out for buying luxury apartments in Cochin. They have some regulations when it comes to the types of properties that they want to buy in India. There are also some legal provisions which they have to look into when it comes to the method through which such purchases can be funded.
Sources for financing real estate purchases for NRI Keralites
The money for purchasing property, say, the best waterfront apartment in Kochi in Hebron Silver Shores, has to come in only through the bank. The NRI cannot pay for the purchase using foreign currency or through traveler’s cheques. The money that is lying in the FCNR/NRE/NRO account can, however, be used for the purchase.
Keralite NRIs can take home loans from nationalized banks or housing finance companies in Indian rupees and pay for the property. Alternately, a home loan granted by an Indian employer for an NRI employee can be used for the purchase.
NRI Keralites – How they can get a home loan
Almost all the nationalized banks in India offer loans to NRIs for either purchasing a house or for constructing a home. They can also look at upcoming projects in Kochi. The NRI is also eligible to buy a plot of land (for non-agricultural purposes) and construct a house in that plot using a home loan from the bank.
The home loan application can be made online along with the requisite documentation. The type of documents that have to be submitted along with application will depend on whether the NRI is an employed person or into business/self-employed.
Nonetheless, personal identification documents such as copies of visa, passport, proof of residence in the foreign country, etc., are to be submitted compulsorily. Depending on whether the NRI is salaried or self-employed, the applicant for the home loan has to furnish a minimum period of stay in a foreign country.
The NRI home loans are thus reasonably popular among the NRIs that live abroad. The interest rates are attractive and paperwork is a minimum. The repayment schedule is also reasonably flexible.
The banks sometimes insist on a co-applicant or a guarantor. The guarantor is also expected to submit a few documents pertaining to identity, address, and income.
Servicing the home loan
The home loan repayment can be in the form of remittances from the foreign country through banking channels. It can also happen by debiting the NRO/NRI/FCNR account. Money can be transferred to the NRO account by local relatives.