Every year thousands of NRIs apply for a home loan in India. It is a convenient way for them to purchase their dream home and stay connected to their native land. Some NRIs purchase a home in India as part of their retirement plan and settle here during their old age. And to help the NRIs realise their dream of buying a home in India, many lenders offer special NRI home loan schemes.
So, with an NRI home loan facility at your disposal, lack of funds can never be a hindrance in your pursuit to purchase a home. Even if you have sufficient funds at hand to buy the house, applying for a home loan allows you to enjoy several benefits such as tax saving, having enough cash liquidity and more. Let us look at the benefits of applying for NRI home loans.
- Sense of accomplishment
Buying a new home is one of the biggest financial investments you will make in your lifetime and by availing a loan, you can make that long-cherished dream come true and feel a great sense of accomplishment. For some, buying a home is an important milestone achievement.
But apart from the sentimental value attached to buying a house, the huge amount of money you invest into buying the home makes it the most cherished part of your investment portfolio.
- Capital appreciation
Most NRIs avail of a home loan to fulfil their dream of buying their home in India. But others look at home buying as an attractive investment opportunity. Over the years, the market trend shows that the prices of real estate prices in most parts of India, especially in urban areas, is going upwards.
So, the real estate market in India offers an excellent opportunity for the NRI to grow their capital and earn valuable returns on their investment. Also, with the rent prices going upwards in line with the inflation, investing in a home is a promising prospect.
- Affordable interest rate
Another important reason why many NRIs are applying for a home loan in India is that with the growing competition among lenders, the interest rates are quite affordable. During the loan tenure, the interest rate may go through up and down cycles. Therefore, you can be sure that you will benefit from the falling rates at some point during the repayment period.
- Cash liquidity
A financial emergency can occur any time without any warning. And when you face such a situation liquidity crunch may force you to opt for financial facilities like a personal loan. The repayment of such loans may cost you more interest compared to the home loan interest.
So, why use your own funds and face liquidity issues to buy a home? You can keep your funds secured to meet other important financial goals without. Home loan allows you to purchase your dream home while giving you the flexibility to repay the amount in smaller instalments over a period.
- Due diligence by financial organisations
Typically, the lending institutions exercise strict due diligence before approving the home loan. They verify the property physically as well as undertake a thorough verification process of the property-related documents and the builder. This reduces your risk of investing in a wrong property to a great extent.
So, when the approves the home loan application for a specific property, you can be certain that it has a clear title and legal clearances as required.
With so many benefits of NRI home loan, it is no surprise that the number of NRIs applying for a loan in India is rising every year. If you are an NRI, apply for a home loan and enjoy the above benefits.