Essential Highlights Of NRI Home Loans

[Shashank Bhaskar]

According to the FEMA directives, NRIs are those who live overseas for more than 183 days in a calendar year. They earn their living in foreign currencies, which get deposited in their foreign account. However, those NRIs who have their income sources in India require an NRO account. This way, even if you live abroad, you can manage the finances back home. There are several other reasons you need this account, which are –

Takes care of your Indian dependents

An NRO bank account is one of the two kinds of NRI accounts that Indians live and earn internationally. Besides the fact you might have moved, the NRO account makes it possible for you to take care of India's dependents. If your spouse, parents, or children are still Indian residents, you can deposit the funds in this account. From here, your dependents can withdraw. However, you need to assign a resident Indian as the joint account holder to withdraw.

Deposit foreign currencies

Although this account is a rupee account, you can deposit both INR and foreign currencies. Earning an income in a currency stronger than INR can prove beneficial. For instance, if you live and make in London and deposit GBP 200, the amount is converted to approximately INR 16,000. As such, you benefit from the currency difference.

Keep tabs on Indian income sources

The NRO account's best benefit is you can track your income sources in India, despite being based in a country that is thousands of miles away. You can safely park the income earned from sources like properties rented in India, fixed deposits back home, and share market investments, among other things.

Make investments and pay bills

Through the NRO account, you can continue your investments done before assuming NRI status. For example, the sum parked in the account gets used for paying the loan EMIs and insurance premiums. Moreover, you can pay utility bills in India swiftly through this account. Some banks also enable you to set up an auto-pay facility for paying EMIs and other utility bills like electricity, gas, water, and phone bills.

Manage account via net banking

No matter where you are, manage NRO online by using the net banking credentials you can use to check the account statement, intra and inter-bank transfers, creating fixed deposits, and so on. Banks also offer mobile apps through which you can review your account on the go.

Avail loan and overdraft facilities

The other benefit is you can apply for loans in India against the savings in the account. You can apply for varied loans. If the balance is low and you have a fixed deposit, you can use them for availing of overdraft facilities.