Posted On: 15-September-2022
NRI Home Loans refer to Non-Resident Home Loans, which are custom made especially for NRIs (Non resident Indian) who want to purchase property in India. This includes buying residential property, land for construction of a home, and repair or renovation of an existing property. Individuals can get this loan either under the regular home loan services or through various lenders or financial institutions which offer NRI housing loans under the diversified category of home loans. The minimum rate of interest for an NRI home loan starts at 6.90% and the maximum tenure available is 30 years.
NRI Home Loan Benefits
There are various benefits of NRI Home Loans that a NRI can enjoy along with the home loan and some of them are -
1. Interest Rates - Banks and other financial institutions offer very low and attractive interest rates on NRI home loans which is very beneficial for the NRIs.
2. Type of Interest Rate - The NRIs get to choose the type of house loan interest rate. They choose from fixed and floating interest rate, as per their suitability or affordability.
3. Other Services - Along with the home loan fund, NRIs also get free-of-cost accident insurance till the maturity of the loan.
4. Easy Process - The procedure for availing home loan for NRI is very simple and easy. It also comes with a doorstep facility till disbursement in India.
5. You can also opt for a part-prepayment service without paying any additional charges in the NRI account for a home loan.
The eligibility criteria for NRI housing loan differs from lender to lender, but here are some of the basic eligibility parameters -
1. The applicant of a NRI home loan must be either a Non-Resident Indian(NRI), Person of Indian Origin (PIO) or Overseas Citizen of India (OCI).
2. The minimum and maximum age of an NRI home loan applicant must be between 18 - 70 years and cannot go beyond that.
3. The applicant must be either a salaried employee or a self-employed individual.
4. The credit score of the applicant must be 750 or above. The applicants with higher credit scores have a higher chance of getting an NRI home loan approved.
5. There are a few other factors like income stability, resident country, qualification, asset and liability ratio, etc. These all also play a major role in the reviewing of application of a home loan for NRI.
The important documents that a NRI applicant must submit along with the NRI housing loan application form for their loans to be approved are
1. Identity Proof - Visa Card, Valid Passport
2. Property Documents - Buyer agreement, payment receipt, title agreement, title contract of the land
3. Other Documents - Occupation information, own contribution proof, documents related to existing loans, processing fee cheque, passport size photograph with signature
4. Passport-size Photographs
5. Income Proof - Salary slips of last 3 months, bank statements of last 6 months, Form 16 and income tax returns, appointment letter, POA information, domestic NRE/NRO account statements of last 6 months