Constructing home in India and getting NRI loan

[alexraj]

I am PR and I'm thinking of constructing house in my ancestral village in India and planning to get a NRI home loan from SBI.
There are a few things different while asking for loan as an NRI - like providing two fortnightly payment as proof for one month etc.

Has anybody done something similar before? Have you faced any obstacles?

 

[steaky]

What is the advantage of getting a NRI home loan from SBI? I googled and I saw NRI interest rate around 7% p.a while personal loan in Canadian banks such as CIBC prme rate as low as 2.45%.

 

[alexraj]

Yeah, I am in Canada for only a year and still building up credit (currently it's around 650) - so will not qualify for good rates. I see all personal loans start at 5.5% and I don't think I'll get that rate.
Also, I think the prime rate you mention is for mortgages. If that's the case, I don't think they'll approve for homes outside Canada. Do you know more about this?

 

[steaky]

The prime rate is also for personal loans. One can use personal loans for everything including homes in a foreign jurisdiction.

 

[alexraj]

Oh, that's good to know. Thanks a lot steaky