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AllBank HOUSING FINANCE SCHEME for NRI /PIO

    Purpose :
  • For construction of residential house on land already owned.
  • For purchase of plot (Plot must be located in developed / developing residential locality and properly demarcated) and construction of residential house thereon. (Utilisation of loan amount for purchase of Plot will be restricted to 60% of eligible / sanctioned loan amount) .
  • For purchase of house/flat.
  • For renovation / extension / repair of residential house already owned.
  • For purchase of unfinished / old house and renovation /extension / repair of the same.
  • For taking over of housing loans from other financial institutions / banks.
  • Target Group:
  • Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs) holding foreign passport, singly or jointly.
  • Close relative of NRI / PIO like – Spouse, Father, Mother, Son and daughter can be the joint borrower even if they are the resident of INDIA having future interest in the property.
  • Financing for Purchase of Land
  • Loan can be availed as a package,for purchasing a plot of land and construction thereon also. However, utilization of loan for purchase of land will be restricted to 75% of the cost of land or 60% of the permissible amount of total loan, whichever is lower.
  • Age minimum age 21 years. Age of the borrower plus repayment period should not be beyond 60 years of age.
  • Must be employed/self-employed or having a business unit and staying abroad at least for 1 years.
  • Must have minimum gross annual income equivalent to Rs. 3.00 Lacs per annum.
    OR
    Must have minimum gross remittance equivalent to Rs. 3.00 Lacs per annum in his NRE/NRO/FCNR during last three year.
    Loan Limit :
  • Minimum loan amount: Rs. 5 lacs.
  • Maximum loan amount : Rs 500.00 lacs.
  • Total deductions including EMI of proposed loan should not exceed 50% of the amount taken for calculating eligible loan amount.
  • Need based finance depending on the repayment capacity of the borrowers, subject to following:
  • As on date of application, if the age of the borrowers / co-borrowers is less than 45 years, maximum loan limit will be 6 times of Gross Annual Income as per ITR or 72 times of Gross Monthly Salary Or 2 times of minimum yearly Inward Remittances in NRE/NRO/ FCNR account during the last three year, whichever is higher.
  • However, if age of any of the co-borrowers is 45 years & above, maximum loan limit will be 5 times of Gross Annual Income as per ITR or 60 times of Gross Monthly Salary or 2 times of minimum yearly Inward Remittances in NRE/NRO/ FCNR account during the last three year, whichever is higher.
  • a) If Gross Annual Income of the proponents (Individually or jointly) is up to Rs.15.00 Lac, take home income should not be less than 40% of the Gross Annual Income.
  • if Gross Annual Income of the proponents (Individually or Jointly) is more than Rs.15.00 Lac, take home income should not be less than 30% of the Gross Annual Income subject to the minimum annual take home pay of Rs.6.00 Lac.

  • Margin
  • For loans up to Rs 30 Lac - 10% of Project cost. Max LTV 90%.
  • For loans above Rs 30 Lac up to Rs.75 Lac - 20% of Project cost. Max LTV 80%
  • For loans above Rs.75 Lac – 25% of Project Cost. Max LTV 75%

  • Interest rate
  • Please refer the latest applicable guidelines.
  • Equitable / Registered Mortgage of the property.
  • Personal Guarantee of spouse (if not made co-borrower and residing in INDIA) and one other person of means and standing and residing in INDIA acceptable to the Bank. (Third party guarantee of resident Indians may be waived by the Sanctioning Authority on the merit of the case)
  • In case the loan is sanctioned / disbursed on the basis of Power of attorney personal guarantee of power of attorney holder should also be obtained.
    Repayment Period
  • Upto Attainment of 60 years of Age, Maximum 10 years.
  • Moratorium Period
  • In respect of construction of new house/flat - 18 months from the date of first disbursement or 1 months after completion, whichever is earlier
  • In other cases - 3 months after last disbursement
  • Interest is to be served during moratorium period.
  • Processing & other charges
  • As per the Service Charges circular.
  • Prepayment Penalty
  • Nil
  • Mode of Repayment
  • Remittances from abroad through normal banking channels
  • Out of funds in NRE/FCNR/NRO accounts
  • Remittance out of local funds by close relatives
  • From the rent received from letting out the house / flat purchased from bank loan
  • Repayment mechanism in each case be made specific, so that the monthly installment alongwith interest are recovered smoothly.
  • If required, Minimum 24 PDCs should be obtained before release of fund.