NRI Home Loan

Indians may have reached the moon or have based out and about the world, but their heart still lies in their roots-in their own country. And to own a home in your own country is no less than a joy. Many non-resident Indians (NRI) plans to invest a home or a property in their country but somehow are not too sure about how to go about it. NRI Home Loan is the ultimate solution for them. Many leading banks, financial institutions and NBFCs offer home loan to NRIs so that they can proudly own a property which they can call their own.

NRI Home loans are provided by many leading banks like HDFC, ICICI, Axis, SBI, Kotak among many others. And with technology taking over the banking industry, the whole process of procuring a home loan is easy and quick. Competitive interest rates, flexible repayment options, less paperwork, fast processing and guidance from the bank representatives make NRI home loans much covetable. Usually, the NRI Home Loans rate of interest begins from 8.70% and varies from banks to banks. It is advisable to take a home loan through LoansJagat portal which allows you to compare different banks for their offerings in terms of rate of interest, processing fees, tenure, EMI etc. so that you can make a well-informed decision.

NRI Home Loan Interest Rates

NRI home loan interest rates vary from one banking institution to another. The rate of interest is subject to change on discretion of the bank itself or directives of RBI. It is always advisable to compare different lenders for the rate of interest they are offering and choose the one which best suits their needs. The borrower should also undertake processing charges, foreclosure charges and other hidden charges into consideration so that they don’t end up paying a major chunk as the interest rate.

Here is a comparative list of few leading banks and financial institutions in terms of their rate of interest and processing charges.

 Features & Benefits of NRI Home Loans

NRI home loans are a great way of meeting the financial needs of buying a property, building a home/property and/or renovating any old property in India.

• With technology at its peak, NRI home loan can be applied from any corner of the world. One can also track the loan application from the comfort of their homes.
• The borrower can choose between the fixed and floating rate of interest.
• The application process is easy and simple.
• Pre-payment of loan can be done with zero fore-closure charges. This, however, differs from bank to bank and can be negotiated at the beginning only.
• NRI Home loans come with a competitive rate of interests which comes with a monthly reducing basis.
• The online processing of NRI home loans is fast and transparent.
• There are no prepayment charges levied by the banks if you wish to pay off the loan in advance.
• Using the EMI Calculators, one can calculate the estimated EMI for the NRI Home Loan.
• Depending upon your finances, you can repay the NRI Home loan in small monthly instalments for a longer tenure.
• All the services can be availed from the comfort of one’s home.

NRI Home Loan Eligibility

• Work experience: The borrower must have a minimum of 2 years of work experience in present company
• Age: The borrower must be a minimum of 21 years old and maximum of 60 years old.
• Loan tenure: One can take the loan for up to 30 years.
• Loan Amount: This depends on the profile of the borrower.
• Interest Rate: The NRI Home Loan rate of interest starts from 8.45 % p.a onwards.
• Prepayment charges: This may vary from zero to a maximum of 2 % depending on the bank.
• Late Payment charges: Usually banks charge 1% to 3% for late payments. This varies from bank to bank.
• Nationality: The borrower should be of Indian nationality.
• Resident type: The borrower must be either Non-Resident Indians (NRI) or Persons of Indian Origin (PIOs)

Profiles

To apply for NRI home loan, the borrower should be either

• Non-Resident Indian (NRI)
• Person of Indian Origin (PIO)
• Overseas Citizen of India (OCI) – except citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Bhutan or Nepal

Prerequisite

The banks grant the NRI home loan only to people having a resident Indian as a co-applicant. Home loan application has to be submitted with co-owner/ co-borrower of the property.

Age

The NRI willing to apply for a home loan in the country must be minimum of 21 years of age. And the borrower must be either 60 years or of retirement age at the time of maturity of the loan.

Work Experience

Salaried NRIs must have a minimum of one-year overseas work experience for applying for a home loan. Whereas self-employed NRIs must have 2 years of overseas work experience.

Salary Criteria

Banks, NBFCs and housing finance companies have varied salary criteria. It is better to compare different lenders on account of rate of interest, eligibility criteria and other aspects on LoansJagat platform.

Documents Required for NRI Home Loan

The lenders seek the following documents from the NRI home loan borrower:

• Full Passport
• Copy of work visa 
• Filled loan application form
• Employer ID card
• Passport size photographs
• Proof of valid work permit
• Copy of employment contract
• Current overseas residential proof, i.e. house lease agreement, bank statement, utility bill, card statement, etc.
• Salary slips of the past three months
• Statement for the last six months of salary account and NRE/NRO account
• A general power of attorney
• Last year ITR except for NRIs in Middle East nations and Merchant Navy Employees
• Details of previous loan(s), if any
• Property papers

Keeping these documents handy ensures a smooth and hassle-free loan application process.

Things to remember when Applying for NRI Home Loan

The maximum tenure allowed for self-employed individuals is 20 years. For salaried persons, the maximum tenure is 30 years.

It is very important to get the loan approved before choosing the property. Keep the savings at bay and for buffer.

How to Apply for NRI Home Loan

Many banking and financial experts advise to thoroughly research the various lenders and their offerings before making the final decision. It is important to note that home loan is a long-time commitment and thus one should be sure of the lender and the terms and conditions. Before applying for the home loan,

• Visit the LoansJagat portal and check and compare different NRI home loan lenders. Check for best deals and offers available for the NRIs.
• Compare different lenders for the rate of interest, loan tenure, EMI, eligibility criteria and other charges.
• Choose the lender which best suits your needs and requirements.
• Duly fill the application form and upload the necessary documents.
• LoansJagat representative will get in touch with you and will manage and take care of your application process till the time loan is not disbursed in your account.
• Issue the power of attorney in the name of co-applicant and co-owner of the property in India.
• Visit Indian Embassy in your country and collect the power of attorney form in the format of lending NBFC/bank. This final format has to be signed in favour of the Indian co-applicant in the application form. The Indian Embassy will put a seal of approval on the form.

Thus, it is not a herculean task to avail a home loan if you are an NRI and wants to buy a property in your home country.