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Bank Of Baroda NRI Home Loan

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Bank of Baroda NRI Home Loans

NRIs An Introduction

Hundreds of Indians immigrate to different countries each year for work, higher studies or business opportunities. This migration has led to thousands of families located in North America, Europe and Middle East.

Coined as NRI (Non-Resident Indians) are people who have an Indian passport and are living abroad for a long time (more than a year) for work, studies or other legal purpose. According to FEMA an NRI is “who resides outside India for employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period”. It also mentions that any Indian who hasn’t lived in India for more than 182 days during that financial year he/she is considered an NRI.

It is to these people that banks like Bank of Baroda provide home loans at competitive and exclusive interest rates.

Bank of Baroda NRI Home Loan

An NRI home loan will follow the same structure as a normal home loan with the loans being repaid in Equated Monthly Instalments (EMI). The difference arises in the interest rate and tenure, where the interest rate for NRIs is slightly higher and the loan tenure is lower than compared to home loans provided to Indian residents.

The NRI home loans have lower tenure as the borrowers earn a handsome income which indicates a higher repaying capability. Moreover, most of the NRI borrowers wish to close the loan at the earliest.

Important factors NRIs need to remember before applying for a Home Loan

Loan Repayment

As per RBI rules Repayment must be done in rupees through an account in the India or utilizing NRE or NRO accounts. If the property is rented out the rent receipt can be used against the Equated Monthly Instalments (EMI)

Tax benefits

As with resident Indians NRIs can also avail tax benefits on home loans under section 24 and 80c. NRIs can get tax exemption on the interest paid for a maximum of Rs. 2,00,000 and Rs.1,50,000 on the principle paid under section 80c. If it is a joint loan taken with another NRI or resident Indian/s then each member can avail for the tax benefits separately.

Restrictions in property owned

The Government of India has stipulated that an NRI can only own 2 houses in India. That is, they can own only 2 properties for residential purposes. Even if the properties are rented out they can only own two. They can own any number of commercial properties while they cannot own land for agriculture.

Benefits of Bank of Baroda NRI Home Loans

Free Credit Card (BOBCARD - complementary for first year) to all Home Loan borrowers (first borrower) with loan limit of Rs. 2/- Lacs and above.
Concession of 0.25% in for Car Loans.
Top up Loan can be availed 5 times during loan period. (Minimum Rs.1/- Lac, Â Maximum Rs.200/- Lacs.
Close relatives of the applicant can be added as a co-applicant for higher eligibility, with or without being a joint owner of the property
Risk Based Pricing (Bureau Score Linked) for Home Loan
Free accidental insurance with every Home Loan
Longer tenure up to 30 Years
Higher amount of eligibility

Bank of Baroda NRI Home Loans Eligibility Criteria

The NRI home loan is offered to people who have been living outside India whose loan tenure, loan amount sanctioned, and interest rate will depend on the customer’s profile, age of customer at maturity of loan, age of property at loan maturity, depending upon the specific repayment scheme as may be opted and any other terms which may be applicable based on prevalent norms of Bank of Baroda.

Age: Minimum 21 years of age and maximum 70 years of age at the time of loan maturity

Residential status:

Salaried – Should have lived abroad for at least 2 years

Self-employed – Should have lived abroad for at least 2 years

Loan Tenure: Maximum loan tenure of 30 years for both salaried and self employed

Income Criteria: For both salaried and self employed the income needs to equal to or greater than Rs.5 lakhs

Loan Amount:

Mumbai: Rs. 10 Crores
Other Metros: Rs. 5 Crores
Urban Areas: Rs. 3 Crores
Semi-urban and Rural: Rs. 1 Crore

All the loan amounts will vary subject to repayment capacity of the customer.

Repayment Capacity

Total deductions including proposed EMI should not exceed as follows

Salaried Persons

GMI less than Rs.20, 000/- 50%
GMI Rs.20, 000/- and above but less than Rs.50, 000/- 60%
GMI Rs.50, 000/- and above but less than Rs.2.00 lakhs - 65%
GMI Rs.2.00 lakhs and above but less than Rs.5.00 lakhs - 70%
GMI Rs.5lakhs and above - 75%

Others

Average Gross Annual Income (For last -2- years) up to Rs.6 lakhs: 70%
Average Gross Annual Income (For last -2- years) more than Rs.6 lakhs: 80%

Margin

Loan Amount	Margin	LTV Ratio
Loans up to Rs.30/- Lacs	10%	90%
Loans above Rs.30/- Lacs up to Rs.75/- Lacs	20%	80%
Loans above Rs.75/- Lacs	25%	75%

Fees and charges for Bank of Baroda NRI Home Loan

Product/Service	Fees
Interest rate	Starts from 8.50%
Processing Charges	1% of Loan amount with maximum Rs.1,50,000/-
Processing Charges	Minimum: Rs.7,500/- (upfront)
Prepayment charges	Nil

Documents Required for Bank of Baroda NRI Home Loan

Purpose	Documents
Proof of both identity and residence (any 1)	Valid Passport (mandatory) Voter ID Card Aadhaar Card Valid Driving License
Proof of income	Last 3 years’ Income Tax Assessment of the individual as well as the business entity Financial Statements (preferably audited) of the business entity for last 3 years Details of the ongoing loans of the business entity and the individual along with photocopy of the sanction letter Bank statements including NRE / NRO accounts for last 6 months of the individual and business entity Credit Bureau Report In case business is carried out under Partnership Firm / LLP - Copy of Partnership Deed / Incorporation Documents In case business is carried out under Company, the following additional documents need to be submitted: Incorporation certificate Incorporation documents like Memorandum of Association, Articles of Association List of Directors and List of Shareholders along with details of shares held by them
Other documents	Business profile Photocopy of valid resident Visa stamped on the Passport Passport size photograph of all the applicants / co-applicants to be affixed on the Application Form and signed across Cheque for processing fee favoring ‘HDFC Ltd.’ in Indian Rupees
Property related documents	Copy of Allotment Letter / Buyer Agreement Receipt/(s) of payment/(s) made to the Developer

Bank of Baroda Home Loan EMI Calculator

To know how much you will have to pay as EMI on Bank of Baroda home loan, you can visit the official website of the bank. Go to ‘Tools and Calculators’ page where you will find the option for ‘Home Loan EMI Calculator’. After entering the page, you will find three fields where you need to enter the following details: 1) Loan Amount, 2) Interest Rate and 3) Tenure in years.

After entering the necessary details, the calculator automatically calculates the loan EMI amount to be paid and delivers the result on the same page. It takes less than a minute to check the EMI amount against the home loan to be taken.

You can also view a similar home loan EMI calculator on CreditMantri website and apply for the loan directly. You will find the results of total amount payable with interest and interest payable separately.