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Home Loan

NRI Home Loans

Many banks such as SBI, HDFC Bank, ICICI Bank offer special home loan schemes for Non-resident Indians (NRIs), Persons of Indian Origin (PIO) and Overseas Citizens of India (OCI). These loans can be short term or long term. These loans help NRI, OCIs and PIOs to purchase a house, build a house and renovate old properties in India. They are very popular since they enable customers to invest in India and participate in the growth story of the real estate sector of India. 

 

Eligibility: The eligibility of the loan depends on the individual’s repayment capacity. A number of things are taken into account while calculating repayment capacities such as the source of income, monthly and annual income, credit history, age, work experience, qualifications and others.  Spouse’s income and assets history is also taken into consideration.

 

Loan tenure: Usually NRI loan tenures are shorter than resident home loan tenures and are given for a maximum of 10 years. 

 

Repayment: The EMI is dedicated to the person’s NRO/NRE accounts. The borrower can also choose to submit post-dated cheques for EMI payment. 

 

Key features of NRI home loans:

An application can be made online, from any part of the world. Usually, banks have special departments and personnel who provide service exclusively for NRI customers.

 

  • The application process is simple and hassle-free.
  • The interest rates are quite attractive. 
  • Like resident loans, these loans are available at fixed or floating rates of interest. 
  • Some banks offer prepayment or part-prepayment facilities at zero fees.
  • Applications are processed quickly and in a transparent manner. 

Documents required for NRI home loans

Below is a list of documents usually required for processing NRI home loans. Of course, this is a general list and may differ from one bank to another:

  • Duly filled loan application form
  • Passport and Work Visa copy
  • Proof of valid work permit
  • Copy of Employment contract
  • Salary slips of the past three months
  • Passport size photographs
  • Current overseas residential proof 
  • Statement for the last six months of salary account and NRE/NRO account
  • A general Power of Attorney (POA)
  • Property papers

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Units 9/12