Loan against Property have been one of the most popular ways to get funds in times of financial crunch. It is the most viable option for financing. Be it for business requirements or for personal expenses or other personal needs, it can be availed by the residents and non-residents both.
Loan against property is a popular type of loans in India, which are provided by most of the banks and financial institutions or Non-Banking Financial Companies (NBFCs). The applicant is required to pledge in their property as security or collateral for availing the loan amount.
The process of Loan against Property for NRIs is no different from the application process for the residents or citizens of India. Here we have discussed in detail about the process and application of loan against property for NRIs in detail.
Applying for Loan against Property for NRIs:
As a Non-Resident Indian, if a person wants to avail loan against property, then they are required to follow the below mentioned steps and take advantage of this type of loan or funding scheme.
Step 1: Researching
The very first step is really important one and is to be emphasized by the applicant. It is utterly important to research about the scheme of the loan against property provided by various banks and other financial institutions. Researching includes to be well informed about the rate of interests of various lenders, quantum of loan, repayment options, terms and conditions related to the loan, loan tenure etc.
As an applicant a person must choose a bank or lender that fulfills their requirement and provide with the best possible scheme of loan against property for NRIs.
To get the related information a person can visit the nearest branches of the banks they are interested in or can contact the customer care or surf over the net in the websites of the lenders.
Step 2: Gathering the necessary or required documents
It is a commonly known fact that the loan applications have to accompany with documents as asked by the lender or are required at the time of application. As an NRI documentation becomes even more important as the lender wants to be very sure about recovering their loan amount. There are common mistakes to be avoided while taking Loan against Property for NRIs and to make the application process easier the applicant is advised to gather all the relevant documents. The following list of documents are usually asked by the lenders to be attached with the application-
- Identity proof like AADHAAR Card, PAN Card etc.
- Address proof like passport, PAN card, driving license etc.
- Income proof: Salary slip for salaried person and financial statements or bank statements for the self-employed individuals.
- Copies of passport and visa wherever required.
- If the applicant is a salaried NRI, then the copy of the passport to show the visa stamps, copy of work visa or permit and documents related to latest salary slip, statements of the overseas bank account, documents to prove NRI status etc.
- If the NRI is self-employed, then a copy of the trade license, profit and loss account, balance sheet, self attested documents etc are to be submitted.
- Photocopies of the property documents that are to be pledged as collateral for loan against property for NRIs.
Step 3: Applying for the Loan against Property
Once all the steps for loan against property for NRIs are completed by the applicant, then the application is to be made. The process is to be completed through online mode. But the documents have to submit in person in the bank.