Your perfect guide to NRI housing loans.

 Being able to go back to a well-established house in your homeland which you can call your own – is a dream come true for many NRIs living abroad. But is it really advisable to block a huge chunk of your funds into building a house which you will use, at least in the near future, only as a second home? To resolve this dilemma, the Indian financial institutions provide NRIs with a well-designed financial system known as NRI housing loans. 


What exactly is NRI Housing Loan?


NRI Housing Loan is a loan provided by banks to NRIs for purpose of purchasing a land/ building/ house or property for residential purposes. NRI housing loan can also be taken for renovating or remodelling an old property or constructing a new building altogether. These loans are typically called home improvement loans. 



In order to avail of an NRI housing loan, an NRI has to first and foremost open an NRI account with an authorised bank. Secondly, he or she has to partner with an Indian resident who will act as a co-applicant, co-borrower or co-owner of the asset hence procured. Determining a co-applicant in your home loan application is an important prerequisite for NRIs to avail of a home loan. It is due to this requisite, the NRI need not be present in the country while availing an NRI housing loan. This process can be done by the NRI online from the comfort of his home. 


Eligibility

  • Non-Resident Indians (NRIs) who are a minimum of 24 years old or maximum of 60 years old with a minimum of 2 years of overseas work experience are eligible for an NRI housing loan.

  • Persons of Indian Origin (PIO) and 

  • Overseas Citizen of India (OCI) 


Documents Required


Here is a list of documents required for an NRI to enjoy the benefits of an NRI housing loan:

  • NRI Housing Loan Application Form

  • 3 passport size photographs

  • Copies of Complete passport and Work Visa

  • Employer ID Card

  • Identity Proof (Passport/ Aadhar Card/ Driving Licence/ Voter ID)

  • Current Overseas Address Proof (Electricity Bill/ Telephone Bill/ Property Tax Receipt/ Gas Bill)

  • Indian Address Proof (not mandatory)

  • Proof of Income 


Salaried (3 months’ salary slip/ 6 months bank statement/ 2 years Form 16/ Work Permit)

Self Employed (2 years of income tax returns and copy of balance sheets/ Tax audit report/ 6 months bank statements of personal and business accounts/ business identity proof)


  • Details of Previous loans if any

  • Property papers

  • General Power of Attorney in the name of the Indian resident who is your co-applicant or co-borrower.


Features

  • Multipurpose Usage – Your loan amount can be used for building, purchase, rebuilding, remodelling or renovation of your residential property. This amount can be used in multiple places as per the borrower’s need.

  • Interest Rates - NRI home loan interest rates in India are very attractive as compared to most of the countries abroad. Enjoy attractive NRI home loan interest rates which an NRI can also repay on a monthly basis.


NRI housing loans come with an option of choosing between floating and fixed NRI home loan interest rates.

Also note, NRI home loan interest is charged daily reducing the balance of your loan. And women get a special concession in NRI home loan interest rates.

  • No extra charges – Your NRI housing loan is free from all the extra hidden charges and pre-payment penalty fees. Also, these loans come with a minimal amount of processing fee.

  • Quick – An NRI can ensure quick and transparent processes when applying for an NRI housing loan online. Also, the NRI can trach his or her online application process status online from the comfort of his house.

  • Long Tenure – NRI housing loans are available for longer tenures as long as 30 years or higher depending on the applicant’s credit score. 

  • Sanction Amount – NRI housing loans offer sanction amounts as high as 80-90% of the total property cost depending on the credit score of the applicant. 

  • Tax Benefit – Taking an NRI housing loan also reflects in your statements thus making you eligible to benefit from tax exemptions under section 80C.

  • Repayment – The loan so taken can be repaid either from funds available in the NRE account/ NRO account or FCNR accounts or from the recurring income against the property so possessed.


As we all can see, applying for an NRI housing loan is a win-win situation for the applicant in all cases. It is advisable to consult an industry expert who can help you maximize your financial gains from any place within or outside India. SBM Bank India’s personalised banking is happy to support you in case of any assistance that you may require. Also, visit SBM Bank India to know more about our NRI saving accounts.

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