Home Finance Options for NRI Buyers

NRI home loan is a customised financial product for those NRIs whose heart lies in India. So, if Indians staying abroad are thinking to invest in home or property in India, all they need to do is to get in touch with a bank or Non-Banking Financial Company (NBFC) and contact with the department concerned with disbursal of home loans.

The renowned banking institutions of India like ICICI, HDFC Home Loans offer tailor-made NRI home loans at affordable pricing and no hidden terms and conditions. The NRI home loans offered by Government banks like SBI and Indian Bank are also quite popular among the NRI population.

These banks offer attractive interest rates, minimum paperwork, flexible repayment options and available online guidance at all times. For NRIs, residing in any corner of the world, getting home loans is not just a distant dream anymore. NRI Home Loan interests offered by leading financial institutes in India, both banks and NBFCs, start from 8.70% onwards.

Key Features & Facilities of NRI Home Loans

NRIs can acquire home loans to fulfil various property related requirements and cater to several needs like buying a house, construction of property or renovation of any old or ancestral property in India. NRIs can apply for loan online, from any corner of the world, even from the comfort of their home and office, and track the loan application on a real-time basis. The best part about these loans is that they come with attractive interest rates on a monthly reducing basis. The applicants are free to choose between fixed and floating interest rates. To give more benefits to the applicants, many banks have also introduced part-prepayment facility at zero charges. The application process is very simple. Quick and transparent disbursal of loan within a few business days is also available. The applicant can opt for repayment of a loan in small EMIs or for a longer tenure depending upon their financial capacity. 

Prerequisite

As the applicant is an NRI, they most importantly require a co-applicant, co-borrower or co-owner of the property who is a permanent resident of India. The co-applicant has to be a part of the home loan application which is to be submitted by the NRI. NRIs has to give this person the power of attorney to deal with banks and paperwork. Therefore, this person should be trustworthy enough.

Documents that are required for NRI Home Loans:

During the processing of loans, the applicants would need to submit the following essential documents to the bank or NBFC for a hassle-free processing. Firstly, the applicants require to submit a copy of passport and work visa along with a duly filled loan application form. The applicant also needs to attach a copy of the employee ID card (if the applicant is a salaried employee). The applicants would also need to submit 3 passport size photographs and a proof of valid work permit and a copy of the current employment contract. And not to forget, the Salary slips of the past three months.

Besides these, applicants would also require current overseas residential proof, for example, house lease agreement, bank statement, utility bill, card statement, etc. Financial institutions might also ask for the last six months statements of salary account and NRE/NRO account. Very importantly the NRIs need to give the general power of attorney to the co-applicant of the loan. Except for the merchant navy employees, the NRIs have to submit the details of the previous return of ITR and previous loan(s) if any.

In case, the loan is needed for the renovation of the property, the bank would need the papers of the property, in lieu of a checking them.

The Process of Application:

First of all, the applicant needs to select the lender on the basis of their needs and requirements. Then, one needs to select the right person who would have the power of attorney and that person would also be the joint owner of the property in India. Afterwards, the applicant would need to go to the Indian

Embassy in the residing foreign country and collect the power of attorney form in the format of the lender bank/NBFC. A final power of attorney form has to be signed by the applicant in favour of the Indian co-applicant in the application.

This is how the NRIs could fuel the dreams of buying homes in India.

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