Ask Mint | NRIs are permitted to take home loan

Ask Mint | NRIs are permitted to take home loan

—Chakshu

If the aggregate interest income that you are likely to earn from all your deposits held in a branch is more than Rs10,000 in a single fiscal year, you become liable to pay TDS. TDS is made every time the bank pays interest during the fiscal year and the above-mentioned criterion is satisfied. In addition, tax is also deducted when the interest is credited or cumulated in the case of cumulative deposits.

I had two credit cards. I lost my job during the current recession and was unable to pay the dues. The banks offered me a settlement option, which I took and am repaying my dues. But I believe they have reported me to the Credit Information Bureau (India) Ltd (Cibil). This is because one of my loan requests was rejected recently. What should I do?

—Suman Saxena

When you settle for an amount that is less than the total dues, then the balance is reported as “written off" by the bank to Cibil. The fact that you defaulted on your credit cards and settled for less than what was due will stay on your credit record. To rebuild your credit record, try getting a loan against a security, such as jewellery, or a credit card against a fixed deposit. This will enable you to slowly rebuild a good credit history and help you get regular loans. But this will take a few years.

—Bharat

I presume you are an Indian citizen and it is possible to repatriate your earnings outside Kenya to India. You are eligible for a loan like any other Indian, but there will be stress in getting the loan sanctioned on fulfilling certain parameters, such as qualification, current job profile, past experience, probability of continuing in your job abroad for the loan tenure and the probability of servicing the loan with an extended tenure in case of return to India. Also, the loan-to-value (LTV) ratio for non-resident Indian (NRI) customers varies from one bank to another, though the manner of calculation is the same in case of a regular home loan. The down payment for the home loan is permitted through direct remittance from abroad through normal banking channels or from deposit accounts in India, including non-resident ordinary (NRO) savings account. Broadly, the other conditions remain the same.

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