A Guide to NRI Home Loan - Knowing the fees

Several NRIs (Non-residential Indians) aspire to buy a home in India. It is more a necessity than luxury to have a beautiful place that you can call home to live comfortably with your family. If you are an NRI and are looking to buy a home in India, you would be delighted to know that there are plenty of financial institutions in India like Indiabulls Housing Finance Ltd that are willing to offer NRI home loans at attractive interest rate.

You can avail NRI home loan for various purposes including:
•    Purchasing a new flat
•    Building/construction a new house
•    Carrying out repairs or renovation work in your existing flat
•    Buying a plot of land to build a new home

Just like other home loans, NRI home loans too have certain fees and charges associated with it. Some of the fees that majority of the lenders in India levy are:

•    Processing Fees
Processing fees are also commonly referred as administrative fees. If you are applying for NRI home loan, you would need to pay this fee along with the application form. This fee is usually non-refundable. The processing fee levied by the lender is usually about 0.5% to 1% of the total amount you wish to avail. While applying for NRI home loan it is advisable to ask the lender if the processing fee includes service tax.

•    Interest Rates
The interest rate applicable on the NRI home loan is usually slightly on the higher side as compared to the home loan for resident Indians. The interest rate usually varies from lender to lender depending on the loan duration, loan amount and assessment the lender makes about the borrower.

•    Valuation charges
This is a charge that is levied by the lender to evaluate the actual value of the property you wish to buy.

•    Late payment fees
As the name suggests, it is a fee that is levied when the lender fails to repay the monthly installment on time. The fee is usually about 2% of the EMI.

•    Prepayment charge:
If you want to repay the loan prior to the actual tenure of the loan, the lender would ask for prepayment charges. The amount of prepayment fee you would need to pay may vary from lender to lender. This is not a mandatory fee as there are plenty of lenders that do not charge prepayment fee.

Indiabulls Housing Finance ltd, is the 3rd largest Housing Finance Company (HFC) in India and we offer attractive home loan schemes for NRIs. With more than 200 customer service walk-in branches spread across the country and with office in International locations we assist NRIs to accomplish the goal of owning a home in India.