Eligibility
NRI with a valid Indian Passport or a Person of Indian Origin and holding passport of other countries excluding Pakistan, Bangladesh, Sri Lanka
, Afghanistan, China, Iran, Nepal and Bhutan.
Monthly salary is equivalent to Indian Rs. 10,000/-
Purpose
For buying, building or renovating your home. The house/flat should be for own occupation when returning to India.
Loan amount
For building or buying a new house - Maximum of 80% of the cost of the house or Rs. 500 lakhs whichever is lower.
For renovating house - Maximum of Rs. 5 lakh.
Margin
The minimum margin is 20%. Margin may be by way of foreign inward remittance or by debiting NRE /NRO /FCNR accounts in India.
Security
Equitable mortgage of the property to be purchased or built or renovated
Property should be insured for adequate value with Bank clause
Repayment
If the house is bought or built, repayable within a maximum period of 180 months (15 years).
Repayable in equated monthly installments through fresh foreign inward remittance or by debiting NRE/NRO/FCNR account in India
The repayment of loan installment/interest and other charges can also be made by close relatives of the NRI borrower in India.
If the house is rented out, rental income should be adjusted towards loan installments, even if it is more than the monthly installment prescribed
If the rental income is less than the prescribed monthly installment, the shortfall should be brought in be way of fresh inward remittance or by debiting NRE/NRO/FCNR account in India
The repayment of loan installment, interest and other charges can also be made by close relatives of the NRI borrower resident in India, through their bank account.
Holiday period
If the house is bought, repayment can commence 6 months after receiving the loan
If the house is built , repayment can commence 12 months after receiving the loan.
If the house is renovated, repayment can start 3 months after receiving the loan
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Retail credit interest rates
Rate of interest Processing charges
The processing charge is 0.57% of the loan amount subject to maximum of Rs 10000/-.
Download the application form. Save it on your computer, print it out and send it to the nearest/convenient IOB branch for Processing