If you are based overseas and are looking to invest in buying a house in India, and are also looking for a home loan, there are certain requirements and NRI specific information that you must know about.

Who is an NRI?

Non-resident Indian or an NRI is an Indian citizen who is currently living overseas but has an Indian passport. An NRI may be residing in a foreign country for a variety of reasons such as employment, an overseas business which requires him/her to stay in a foreign land for a long time, etc. Any Indian citizen to be deemed an NRI must mean that he/she has spent not more than 182 days in a year in India.

NRIs often invest in real estate in India and the trend has peaked since the past few years because of the rising growth of the real estate business. Whether an NRI is looking to buy a house for themselves or for their family, there are certain rules and regulations involved when you’re buying real estate in India, especially when you are looking for a home loan.

As such all NRIs are eligible to buy property in India and are also eligible to avail home loans from banks and independent financial institutions. An eligible house can be either a built home, under-construction or on re-sale. Home loans can even be availed by NRIs in cases when they would like to self-construct a property by buying a residential land in India.

Considering needs of NRIs, banks have come up with International offices in cities like London, Dubai, Singapore and many more.

NRI home loan eligibility in India

Banks grant home loans to salaried and self-employed individuals in India for upto 80-85% of the total home value. NRIs also benefit from the same. However, there is a difference in the downpayment structure for NRIs. The down payment for the home loan made by an NRI must be directly remitted from abroad via the pre-existing banking channels or via an NRE or an NRO account in India. The home loan EMI must also occur from any of the above payment channels.

The eligibility criteria for an NRI seeking a home loan in India is more stringent in terms of job, educational qualifications, prior work experience, any existing loans, credit history in India and the probable circumstances of continuing the loan in case the NRI returns to India.

Home loan tenures for NRIs are usually shorter as the risk involved is higher. As such the home loan tenure is not more than 10 to 15 years for an NRI candidate.

Documents required by banks from an NRI over and above the general documentation process

NRIs need to produce additional documents that are over and above the general documents that are needed for a home loan. Some of these additional documents include:

✔ Passport and Visa copy.

✔ Copy of current employment details such as employment contract details or an appointment letter.

✔ Copy of identity card that should be translated and duly signed in English.

✔ Salary slip details that should point out the full name,date of joining, salary details and the designation.

✔ Statements of bank accounts for both international and domestic accounts.

✔ Income Tax returns copy of the foreign country where the NRI resides.

NRIs enjoy tax benefits on interest payments that can be applied towards any income that’s taxable in India. Many banks also offer zero penalty on pre-closure of a home loan by NRIs.

Check Your Eligibility

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