NRI Home Loan
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Table of Contents
Eligibility for NRI Home Loan
An NRI home loan is available for the construction of a new house/flat, purchase of a second hand house or alteration to an existing house. The NRI home loans are given to Non Resident Indians (NRIs) for buying, building or renovating homes that are meant for their occupation once they return to India.[br]
Eligibility for NRI Home Loan
Every bank and housing finance company in India follows the RBI norm to define a Non Resident Indian (NRI) as an Indian citizen holding valid documents such as an Indian Passport and who stays abroad for employment or due to any other circumstances indicating an uncertain duration of stay abroad.
In addition, any of the government officials who have been posted abroad on duty or for any assignments with foreign governments or regional/national/international agencies are also entitled to these loans.
An NRI is eligible for a home loan, provided:
- He/she is at least 21 years of age
- a graduate
Interest rates on NRI Home Loans are marginally higher than the rates applicable on housing loans to resident Indians. The size of an NRI Home Loan depends on the borrower’s repaying capacity.
The borrowing capacity of an NRI is calculated on the basis of:
- income
- work experience
- age
- assets and liabilities
- alternate employment prospects in India
Documents Required for an NRI Home Loan[br]
Typically, NRIs live far away. So, Indian banks and lending agencies require them to provide some additional documents such as:
In addition to the above, the following property related documents are required for submission for an NRI Home Loan.
The repayment has to be routed through the NRE or NRO accounts of the Non Resident Indian who is taking the loan.
