The Indian real estate sector is booming, which has sparked the interest of the NRI diaspora. Whether for emotional or strictly economic reasons, the number of ex-pats interested in investing in India’s real estate market has increased dramatically. Another reason for the rush is the financial benefit of a depreciating rupee and the ease of obtaining home loans from financial institutions. However, the house loan procedure for NRIs differs from that of Indian citizens and is properly outlined below.
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In Brief: NRI Home Loan Regulations
Every NRI who falls under the Foreign Exchange Management Act of 1999 (FEMA) purview is entitled to apply for a home loan. However, an NRI is limited to purchasing no more than two residential properties in India. Additionally, they are not permitted to own agricultural land, farmhouses, or plantations in India.
NRIs can secure a housing loan to buy, build, or renovate an existing or new home or purchase a piece of land for residential purposes. The eligibility criteria and documents required vary from one lender to the next, but the basic guideline is available here.
NRI Home Loan Eligibility Criteria
An NRI includes a salaried or self-employed individual who can apply for a home loan alone or with co-applicants. Here, the co-applicants may or may not be the property co-owners. All co-owners, however, must be co-applicants.
The eligibility requirements vary among lenders, but the general conditions are as follows.
- Resident type: Non-Resident Indians (NRI) or Persons of Indian Origin (PIOs)
- Education Qualification: Graduate (with a minimum of three years of employment abroad)
- Minimum salary: Varies as per the lender
- Minimum Age: 18 years
- Maximum Age: 60 years
- Loan Tenure: up to 30 years.
Documents Required For Housing loan.
Some of the documents required while applying for an NRI housing loan are:
- Employer Identity Card
- Attested photocopy of Valid Passport and visa
- Address proof of current overseas address
- Loan application filled with three passport size photos
- Identity proof – PAN, Driver’s license, Voter ID card, etc.
- Address proof – Aadhar card, Recent utility bill
- Valid work permit with an employment contract
- Business proof and proof of income for self-employed
- Previous six months bank overseas details
- Last three month’s salary slip and six month’s bank statements
NRIs can submit their paperwork online or offline, depending on their preference. Furthermore, NRIs must present a power of attorney (POA) if they are not in India at the time of the purchase transaction. A power of attorney must be registered and notarized.
How to Get an NRI House Loan Online
To get a home loan online, follow the steps mentioned below.
Step 1: Go to the official lender’s site and click on the NRI section.
Step 2: Check the loan eligibility and enter the necessary details.
Step 3: Choose the loan term and amount. Submit all papers, together with a fully completed application form.
Step 4: The loan amount is sanctioned to qualified candidates once their documents are examined, and their eligibility is confirmed.
If you’ve decided on a property in India, you may finance it with a home loan. However, bear in mind that you will need application-related documents to complete the know-your-client procedure. Also, be sure to have designated a POA to obtain a housing loan.
