IIFL Finance NRI Home Loan

As an NRI longing for a home in India, you are well aware of the struggles that once deterred NRIs from investing in Indian properties. However, times have changed. The lending landscape has transformed digitally, simplifying the application process for home loans. Regarding long-term asset creation, the real estate sector has emerged as a highly profitable investment opportunity for NRIs. The Foreign Exchange Management Act (FEMA) permits NRIs to purchase residential properties in India. If you currently reside abroad and seek financial assistance to buy a property in India, you can easily opt for NRI Home Loan services provided by IIFL Home Loans. They also offer expert guidance on legal and technical matters throughout the home-buying process.

Both salaried and self-employed NRIs residing in the following countries are eligible for NRI housing loans in India: North America (USA and Canada), Middle Eastern countries (U.A.E. - Dubai, Sharjah, Abu Dhabi only), Riyadh, Bahrain, Muscat, Kuwait, Saudi Arabia, Qatar, Oman, East Asian Countries (Singapore, Malaysia, Hong Kong, Japan, Thailand), and all EU Countries (excluding Spain, Greece, Portugal, and Italy), Australia, and New Zealand.

Features & Benefits of IIFL Finance NRI Home Loan

Here are some of the key features and benefits of IIFL Finance NRI Home Loan:

• Hassle-Free Application Process: Streamlined and simplified application process designed for NRIs, with minimal documentation requirements.
  
• Attractive Interest Rates: IIFL Finance offers competitive interest rates, ensuring that your home loan is affordable and matches your financial plan.
  
• Repayment Tenure: Offers flexible repayment options with tenures extending up to 20-30 years, depending on the borrower’s profile and the loan amount.
  
• Transparent Process: Clear and straightforward procedures with no hidden charges, ensuring a transparent and trustable borrowing experience.
  
• Simplified Documentation: The application process aims to be streamlined for NRIs, potentially requiring fewer documents than traditional loans.

Purpose of IIFL Finance NRI Home Loan

Here are the key purposes for which IIFL Finance NRI Home Loans can be utilised:

• Purchasing a New Home: For NRIs looking to buy a new residential property, including apartments, villas, or independent houses in India.
• Buying Resale Property: Financing the purchase of existing residential properties on sale by their owners.
• Construction of a House: Offering financial support to NRIs wishing to construct a house on a plot of land they own or plan to purchase in India.
• Home Renovation/Improvement: This involves providing funds for renovating, repairing, or improving an existing property to enhance its value and living standards.
• Plot Purchase and Construction: Some NRI home loan products also cater to the combined cost of purchasing a plot and constructing a home on it, enabling borrowers to finance the entire project under one loan.
• Balance Transfer: NRIs with existing home loans from other financial institutions can transfer their loans to IIFL Finance to receive better interest rates and terms.
• Top-Up Loan: Existing IIFL customers may be eligible for additional funding on their home loans for personal or property-related expenses.

IIFL Finance NRI Home Loan Interest Rates

The annual interest rate for NRI home loans from IIFL Finance starts at 8.5%.

IIFL Finance NRI Home Loan Documents Required

Here is a list of documents that NRIs need to provide when applying for a home loan with IIFL Finance:

• Application Form and passport-size photographs
• Identity Proof:

-Visa Passport

-Visa Card

• Address Proof:

-Valid Passport / Visa

-Copy of Rental Deed or Title Document as Foreign Residence Proof

• Resident Power of Attorney

• KYC of Power of Attorney

• Income Proof and Other Documents

-Last 3 month’s salary slip

-Appointment / Increment / Contract Letter

-Servicing any existing loans, then 6 months’ repayment bank statements

-Copy of receipt/(s) of payment/(s) made to the developer (if applicable)

• Additional Documents

-Latest Utility bill

-Rent agreement on Stamp Paper

-Life Insurance Policy

-Municipal or Property Tax receipt

-Rent agreement on Stamp Paper

-Copy of the Sale Deed of the property

-Residence address Certificate

-Post office savings bank account statement

-Documents issued by Govt. departments of foreign jurisdiction and letters issued by Foreign Embassies or Mission in India

-Letter from a recognised public authority or public servant verifying residence and identity

-Letter of allotment of accommodation from the employer

-Pension or family pension payment orders or PPOs issued to retired employees by PSUs, Government

-Bank statements reflecting the address of borrowers of any commercial nationalised bank

-Copy of complete chain documents of the property (as applicable)

-Copy of the Allotment Letter / Buyer Agreement

-Copy of Agreement to Sell

IIFL Finance NRI Home Loan Eligibility Criteria

Indian citizens staying abroad can qualify for an NRI Home Loan in India if they meet the following eligibility criteria:

• The loan is available to any Indian citizen between 18 and 75 years old, whether employed or self-employed.
  
• The applicant must possess a valid Indian passport.
  
• The home loan applicant’s passport should not contain a “No Entry” stamp, as this would prevent NRI applicants from entering the country.
  
• If an NRI applicant is physically present to apply, they must have a passport with a valid entry visa.

Fees and Charges for IIFL Finance NRI Home Loan

The list of fees and charges that apply to IIFL NRI Home Loans is as follows:

Processing Fee	Up to 1.75%
Collateral Evaluation Charges in Home Loan Non-APF	₹3,000
Late Payment Charges	18% per annum on the overdue loan amount
Foreclosure Charges	Nil When the loan is availed by the company – Within 12 months of 1st Disbursement – 5% of the amount prepaid + taxes Post 12 months till fixed rate tenor – 3% of the amount prepaid + taxes

Tax Benefits of IIFL Finance NRI Home Loans

Non-resident Indians (NRIs) can enjoy the same tax advantages on their home loans’ principal and interest portions as resident Indians. If an NRI has taxable income in India, they can claim deductions on their home loan under Sections 24, 80C, and 80EE of the Income Tax Act.