NRI Home Loan Process in India
NRI (Non-Resident Indians) are Indian passport holders who are resident in a country outside India. They are eligible to buy or build homes in India just like any other resident Indian and can invest in any kind of property expect for farmhouses, farmland or plantations.
And just like any other resident Indian, NRIs are also eligible to avail of home loans to buy properties. The only difference is that EMI (Equated Monthly Installments) rates are slightly higher and the loan tenure slightly lower. This is because NRIs earn higher incomes thus improving their repaying ability. Aside from this, NRIs prefer shorter tenure periods to complete loan repayments. The repayment of EMIs for NRIs is done through NRE or NRO accounts and not through their NRI accounts. Other facilities remain the same such as a choice for opting for fixed or floating interest rates, part-prepayment facilities as well as attractive interest rates on a month-on-month reducing basis.
- The NRI should show income proof.
- The NRI should also have lived abroad continuously for at least a year if salaried and 3 years if self-employed.
- The age of the applicant can be anywhere between 21 to a maximum of 70 years.
- Depending on the bank, the loan tenure can be up to 30 years, depending on repayment capability.
- The interest rates can vary from 8.20% to 12% depending upon the loaner bank, such that the NRI should shop around for the best rates.
- Depending on the discretion of the bank and the repayment capability of the NRI, the loan amount sanctioned can range from anywhere between 70-90% of the actual cost of the property.
- The banks will also consider the status of any other loans the NRI has taken
- The credit score of the NRI is also taken into consideration.
- Identity proof in the form of a valid passport and visa copy.
- Income proof in the form of last 3 month’s salary slips, last 6 months bank statements and an appointment or contract letter in case of a salaried person.
- In case if the person is self-employed, then details of business should be provided too along with the last 6 month’s current account statements of the business.
- The NRI should provide a copy of the buyer agreement papers for the property and any payments made towards it.
For NRIs interested in buying residences back home in Trivandrum, Prime Property Developers have a number of choice apartment projects available in niche locations.