Hi Chaps,
I wanted to know how much I’m eligible to borrow for NRI Home Loan based on my income? Is there any formula like we have here in the UK. In the UK it comes out to be around 4-5 times income (minus any other outgoing). Is there any such formula for NRI home loan?
In the USA it is also around 4 times annual gross income with outgoing deducted. For example if your gross salary in the USA is $100k and your annual debt/other regular payments are $10k then you may get $90k ($100k-$10k) * 4.
In India it is different scenario. Last time I spoke an Indian bank and they game me a figure of around 2 times net income. It is pathetic amount tbh.
I wanted to know how much I’m eligible to borrow for NRI Home Loan based on my income?
I was trying to apply for SBI Home Loan online. I got Rs. 60L eligibility for an income of around 1Cr. This is laughable. I don’t think Indian banks will give you more than 2 times your net income in any circumstances.
I also think NRI Home Loan is a joke, why would an NRI need a home loan with such low amount of borrowing. anyone earning around 1CR would have been already saved that amount of money which banks are offering.
You can’t buy any decent house with less than 3-4Cr. If an NRI earning Rs. 1Cr per annum can’t get 2-3 Cr as home loan then who would? If NRI is earning, let’s say, 4-5Cr per annum then he wouldn’t need any help with home loan.
NRI home loan product doesn’t make any sense with such low amount of loan amount.
