NRI or the Non resident Indians are the people who have Indian passport and are staying in foreign countries for the employment purpose or conducting a business there. Their duration of the stay in abroad is not certain. NRIs are allowed to take home loans in order to purchase a house or land in the country. You must be thinking, is there any difference in NRI's taking loan or a normal citizen taking a home loan? The answer is yes. The difference lies in the interest rates and the time period that is sanctioned for a loan. If you are keen to know what the features of the loan for NRIs and what all NRIs need to submit at the time of filing a home loan application then our write will prove to be very informative.
Some of the points to be noted:
- NRIs are given home loans for short span of time
- The loan amount provided to NRIs is 85% of the total cost of the home
- Their loan size depends upon the repayment capacity
- There is a set maximum limit for the amount of home loan 36 times the monthly income of the borrower can be issued as the loan amount.
As the NRIs are living in far off places so the banks are extra careful regarding the documents in order to assure the eligibility of the applicant.
The documents that are required by the bank are:
- Visa & Passport
- A photocopy of the company contract and the letter of appointment
- If the person is working in the Middle East, he is required to submit the labor card/identity card (in English, signed by the consulate)
- Salary certificate (in English) that has the applicant's name, designation, joining date, and details of the salary.
- Last six months Bank Statements
Following is the list of Property Documents that are needed to be attached with the loan application form:
- Original title deeds tracing the title of the property for a minimum period of the last 13 years
- Encumbrance Certificate for the last 13 years.
- Construction or sale agreement.
- Approved plan or license.
- ULC clearance or conversion order.
- Receipts for investment of the margin money through normal banking.
- Receipt of the latest tax paid.
The re-payment is paid in the form of EMI (Equated Monthly Installments), which is made through a NRO or NRE account.
- Certain banks, for security purposes, ask the applicant to issue the first mortgage of the property in the bank's name.
- For the property that is under construction, guarantee of a third party is required.
After reading the above mentioned information you must be well equipped with all the facts about the NRIs Home Loan. Keeping all the points in mind you can calculate the amount you require and what you can borrow as a home loan.