NRI Home Loans | Documents | Eligibility | Apply
NRI Home Loan: Get Details on what’s the process of getting home loans in India from Banks like HDFC Ltd, SBI, ICICI, Axis bank, Bank of Baroda, etc. Apprehend details on Eligibility, Documents required / Process or method of NRI Home Loans. An Indian who has been living overseas for service, conducting business is suitablefor a NRI Housing loan. This post provides all from NRI
NRI can get home loans for the purpose of:
- Construction of new home / flat
- Purchase of an already built (even old) home / flat
- Extension to a home / flat
- Purchase of a settled plot
An NRI can avail of a loan of up-to Rs.2 crore or an amount of up to 85% of the cost of the property. The rate of interest varies from 9.95% to 12.50% p.a. Almost all banks and financial institutions charge a process fee, which is payable once and will amount to around (0.5% to 2%) of the loan amount applied for.
Eligibility required / needed for NRI Home Loans:
The eligibility of the amount of loan disbursed will depend upon the individual’s re-payment capacity. The calculation of re-payment capacity is made based on factors like monthly and annual income, source of income, savings and credit history, work experience, age, qualifications, number of dependents, alternative sources of income including spouse’s income, assets & liabilities. Further, the probability of the individual continuing within the same occupation or his or her interest in alternate employment prospects when he or she comes back to India is assessed. The amount is disbursed in Indian Rs.
The typical duration for re-payment of the loan is 3 to 10 yrs. The re-payments are usually made in Equated Monthly Installments (EMIs), which are a mixture of the principal and interest amounts. EMIs get deducted from the month following the month in which the loan gets disbursed and can be made through post-dated checks from the NRE / NRNR account command by the NRI in India.
Housing loans are offered to NRIs by leading financial institutions and commercial banks in India like Citibank, etc. As an NRI you can opt for the government supported ‘Griha Shobha’ scheme.
Banks typically ask for a security (at least 1 of the below):
- Equitable Mortgage of House / Flat
- One Guarantor
- Life Insurance Cover of any existing policy issued under any acceptable plan of insurance having insurance cover to the extent of loan amount.
Documents Requirement / needed for NRI Home Loans in India:
- Completed Home Loan Application Form.
- Passport size photographs 2.
- Identity Proof – Copy of first four pages of passport and page with visa stamp, or IC / PIO card.
- Valid work permit.
- Copy of the employment contract. An English translation of the contract duly attested by employer / consulate / SBIs foreign branches / offices, or Embassy in case the contract is available in any other language.
- Last salary certificate / slip in original.
- Copy of regular salary certificate duly attested by Indian Embassy / Consulate / SBI Branch / Exchange Companies abroad recognized by SBI.
- Copy of I.D card issued by the current employer / proof of income in case of self-employed professionals / businessmen.
- Brief profile of individual & work establishment.
- Details of previous employment.
- Bank account statement / passbook for the last 6 months.
- Account statement / passbook of overseas bank showing salary and savings.
- Proof of residence (driving license / utility bills).
- Copy of Continuous Discharge Certificate (CDC) – for applicants employed in the merchant navy.
- Sale Deed / Agreement for Sale.
- Copy of approved building plans / approvals in respect of proposed construction/purchase/extension.
- Original NOC under the Provisions of (ULC) Act.
- For Purchase / construction of house-Original title deed, non-encumbrance certificate on the property for 13 yrs, possession certificate and land tax receipt.
- For purchase of flat / building- construction agreement, allotment letter, copy of approved plan, estimates-payment schedule, undertaking from the builder in (Form B) format as specified by the bank.
- Copy of the Order allowing Land Conversion in case of conversion of agricultural land.
- Copy of the land tax receipt / building tax receipt.
- Copy of the Allotment letter of Housing Board / Builder / Co-op. Society.
- Detailed Cost Estimate / Valuation Report from approved valuer in case of outright purchase of an existing house / flat.
- Undertaking from the builder in (Form B), which is the specific format for the bank.
- Notarized Power of Attorney, if somebody proposes to authorize a 3rd party to execute the documents / complete the mortgage formalities / avail the loan installments.
- Any other alternative documents as required by the Bank.