One of the best investment opportunities for non-resident Indians (NRIs) is property. And now is perhaps the best time to invest with the Indian real estate market booming. Even banks are offering a helping hand to NRIs by offering a NRI home loan at the same rates as they apply to resident Indians. But getting home loans for an NRI isn’t the easiest the thing in the world. A lot of documentation is required and the government has very strict regulations for when it come to NRI home loans.
In finance, a loan is a debt provided by one entity (organization or individual) to another entity at an interest rate, and evidenced by a note which specifies, among other things, the principal amount, interest rate, and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time.