The repayment option for Non-Resident Indians (NRIs) is done in EMIs, and includes interest and principal amount calculated on monthly rests. The borrower can pay EMIs by issuing post-dated cheques from your Non Resident External (NRE)/Non-Resident Ordinary (NRO) or Non Resident (Special) Rupee Account (NRSR) in India; or any other account approved by the Reserve Bank of India (RBI).

In the case of part-disbursement of the loan, the monthly interest is payable only on the disbursed amount. EMI is payable every month, by the end of the month from the date of each disbursement up to the date of commencement of EMI. Pre-EMI is calculated at the same rate at which EMI is calculated.

Step Up Repayment Facility
By the step-up repayment option, a borrower can apply for a higher range loan based on the prospects of growth in income for years to come. In this repayment option the loanee has to pay less EMI in the initial years which increase as the income grows with the coming years.

Flexible Loan installments Plan
In this mode of repayment, the borrower has flexible loan installment facility where a borrower nearing retirement age can opt for paying higher EMI in the initial years and gradually move to paying lower installments after reaching retirement age.

Tranche Based EMI
Tranche Based EMI is a special facility offered to the customers so as to save their interest, in cases when customers purchasing an under construction property need to pay interest (on the loan amount drawn based on level of construction) till the property is ready. In such cases, customers can fix the installments they wish to pay till the property is ready. The minimum amount payable is the interest on the loan amount drawn. Anything over and above the interest paid by the customer goes towards principal repayment. The customer benefits by starting EMI and hence repays the loan faster.

Accelerated Repayment Scheme
Accelerated Repayment Scheme for NRIs offers a great opportunity to repay the loan faster by increasing the EMI. Whenever you get an increment, increase in your disposable income or have lump sum funds for loan prepayment, the loanee can benefit by

• Increase in EMI, which means faster loan repayment


• Saving of interest because of faster loan repayment You can invest lump sum funds rather than use it for loan prepayment.

A NRI loanee can opt for repayment ahead of schedule, by remittances in abroad through normal banking channels, your NRO / NRSR in India. However, by regulations in many states in India, the Agreement of Sale between the builder and purchaser is required to be registered by law. It is therefore advisable to record the agreement for registration within four months of the date of the Agreement at the office of the Sub Registrar appointed by the State Government, under the Indian Registration Act, 1908.

Note: NRIs cannot claim tax benefits on home loans in India.