A guide to NRI home loans and how to get one

A guide to NRI home loans and how to get one

whether it’s your dream or just a good investment option you’ve been thinking of,
buying a home back in India is always a good choice and smart decision. With a
good NRI home loan, regardless of whether you’re financially stable or still
finding your feet abroad; buying your dream home in India is very much within
your reach. This article will provide you a rough overview of the NRI home loan
situation and how you must go about applying for one.

How to get one?

You might think that, with all the coordination, paper work submission and
formalities, getting a home loan whilst being abroad must be a task. But in reality
it’s really not that hard. Now days, with most major banks and non-banking
financial institutes offering NRI home loans online, finding the right loan for you
just involves a few clicks on your mouse. And if you’re looking for a face to talk to
in regard to your NRI home loan, look for a financial institute that operates a
branch in your country. In that case, the branch will take care of the entire loan
process, right from approval and disbursement right up to the repayment and
collection of your property documents.

What documents do you require to take out a NRI home loan?

When applying for a NRI home loan, some of the documents you would be
required to furnish include copies of your valid passport, your salary certificate and
statements, a work experience certificate from your current and previous
employers, if any, a bank account statement for the last six months and a valid
work permit, if required in the country you reside in now.

Other mandatories include a local address proof and a power of attorney to
someone in India. Your permanent address proof in India is also required. You also
need to have a completed home loan application form.

As far as documents pertaining to the home you wish to secure, one would be
required to provide a sale deed, copy of approved building plans, purchase or

extension along with an original NOC. If you’re looking to construct a new home,
then in that case, you would be required to provide the finance institute with
documents such as the original title deed, possession certificate and land tax
receipt.

Again these are just some of the crucial documents required, but each financial
institute may demand their own set of documents, that you should be able to
furnish quite easily.

Eligibility.

The eligibility criteria for NRI home loans differacross financial institutes. But
there are three basic factors on which your legibility is considered, namely your
age, your employment or business history and your salary. And depending on the
financial institute, the extent of these eligibility factors fluctuate. For example,
some institutes consider 18 as the minimum age for a NRI home loan, whereas
some won’t consider candidates below 25. As far as your employment and
business history is concerned, again the time and extent bracket differs, for
example, some banks and financial institutes require a minimum of 2 years in
terms of work experience whereas some require just one year’s experience. When
it comes to business history, again, this varies, with some institutes setting the
benchmark as low as 3 years of business history. Lastly, one of the most important
factors is your salary; hence having a good salary is always a plus point. Along
with these basic criteria, other factors include your credit score, whether or not you
have a partner with a stable income, the property you’re going in for and so on, but
as long as these three factors are in place, you should be good to go.

Loan tenure, amount and interest rate.

With some financial institutes, NRI home loan can be taken out for tenures as long
as 20 years, allowing you ample time to pay back your loan. When it comes to
loan amounts, financial institutes can offers up to 90% of the total amount needed
to secure your dream home. All these benefits come along with an interest rates as
low as 7.60% up till 9.05% with fixed and floating interest rate options to choose
between.

All these proves that taking out a NRI home loan is indeed a good decision, and
provided you have the means to do so, you should opt for one today!