Federal Bank NRI Home Loan

The Federal Bank NRI home loans allow Non-resident Indians to finance property and land purchases in India for residential as well as commercial needs. The bank offers a wide range of home loans to NRIs, with each loan catering to a different housing need. Borrowers can avail loans of up to 15 crores for new property purchases, land acquisition for construction, renovation, home extensions, and other housing requirements. Borrowers can comfortably repay these loans in as many as 20 years through easy EMIs.

Urban Money offers end-to-end assistance in Federal NRI home loan applications and helps borrowers seek the best rates. Here, we discuss the various aspects, ranging from Federal Bank NRI housing loan interest rate, eligibility criteria, loan charges and much more.

Federal Bank NRI Home Loan – Highlights

Take a complete overview of the NRI loan from Federal Bank below:

Feature & Benefits of Federal Bank NRI Home Loan

NRI housing loans from Federal Bank offer a host of advantages to its borrowers. Here are some of the prominent benefits of the loan:

• Financial cover up to 85% of the total cost
• Repayment Waiver Up to 3 years
• Overdraft Facility 
• No Prepayment Charges
• Top Up Facility

Note: The above mentioned features specifically belong to the bank’s standard home loan. These might vary for other home loans of the same category. 

Types of Federal Bank Home Loans for NRIs

Federal Bank offers a wide variety of NRI Home Loans. Each  of these loans caters to specific housing requirements and are subject to different T&Cs.

The different types of Federal Bank NRI home loans are:

• Standard Housing Loans
• Plot Purchase Loans.
• Property Power Loan
• House Warming Loan

Purpose of Federal Bank NRI Home Loan

NRI housing loan from Federal Bank assists in:

• Purchase of a new home
• Purchase of land for home construction
• Home Renovation/ Expansion
• Loan Transfer from Other Banks

Federal Bank NRI Housing Loan Interest Rates

Interest rates on Federal Bank NRI home loans start from 8.80% p.a. Interest rates depend on a borrower’s credit scores. Different borrowers are charged different interest rates by the bank. As a rule of thumb, the higher the credit ratings, the better will be the interest rate. It is, thus, advised that borrowers achieve high credit ratings before applying for the loan so as to get the lowest interest rate possible.

Federal Bank NRI Home Loan Documents Required

The Federal Bank NRI  home loan documents required are listed below:

• KYC Documents: ID Proof, Address Proof and 3 passport-size photographs
• Income Documents for Salaried NRIs: Last 1-year NRE account statement/ 3 months’ salary slips
• Income Documents for Self-Employed NRIs: Business registration/ 12 months’s bank statements/ Balance Sheet and P&L Account for specified years

Federal Bank NRI Home Loan Eligibility Criteria

NRIs satisfying the following criteria are eligible for Federal Bank NRI home loans:

• Eligible Candidates: Salaried individuals/ Self-employed individuals 
• Maximum Age: 55 years at the end of the term
• Minimum Monthly Income: As specified by the bank
• High Credit Rating

Fees and Charges for Federal Bank NRI Home Loan 

Apart from the Federal Bank NRI housing loan interest rate, the following additional charges are applicable to the loan.

• Processing Fee: 0.5%-1% of the loan amount, depending upon the type of home loan.
  
• Delayed Repayment Penalty: 2% penalty charge per month on outstanding instalments 
  
• Switching Charges: 0.25% charge on switching between floating and fixed rate of interest 
  
• Other Charges: These include incidental costs,  prepayment charges, document verification charges etc. 

Tax Benefits of Federal Bank NRI Home Loans

Federal Bank NRI home loan borrowers enjoy tax deductions on interest and principal repayments on the loan, upon filing tax returns in India. As per the Income Tax Act of 1961, borrowers can avail of deductions of up to 1.5 lakh on principal repayments and up to 2 lakh on interest repayments. These benefits are subject to the various terms and conditions of the law.