What is an NRI home loan? How can an NRI apply for home loan in India?

Home loans allow customers to buy or build their own houses without being burdened by spending a lot of money at once. NRI customers can also obtain housing loans in India, considering that they fulfil the criteria per the banks.

Home loans in India are one of the best ways to fulfil the dream of owning a house. India had a home loan portfolio of almost 22.4 Lakh Crore Rupees at the end of 2022. These home loans can allow customers to fulfil their future dreams without sacrificing their present needs. Apart from people residing in India, NRIs are also interested in purchasing their own houses in India. So, if you want an NRI home loan in India, read on. We’ll go through all the fundamentals in this article!

What are the criteria for obtaining an NRI Housing loan?

There are certain criteria laid down by the financial institutions and the government authorities which must be fulfilled to obtain an NRI Housing loan:

1. The loan taken by the NRI must only be used for purchasing property in India. The loan cannot be used for any other purpose.
2. The NRI customer must have a Power of Attorney, which allows a resident of India to purchase on your behalf.
3. The loan will be granted to the NRI customer based on the Staff Housing Loan Scheme.
4. The loan amount will be credited to the NRO account of the NRI customers.
5. The loan amount can be repaid only by inward remittance. 
6. The NRI customer must be at least 18 years of age and has to repay the loan taken before they reach 70 years of age.
7. The NRI customer should have a credit score of 750 or more, which makes it likely that the loan would be approved.
8. If the NRI customer is a salaried employee, proof of 1 year of income would be required.
9. If the NRI customer is self-employed, proof of the last 3 years of business income would be required.

What are the documents required for obtaining an NRI Housing loan?

The financial institutions require certain documents to process the home loan for an NRI Customer. These documents are:

1. Documents which act as “Proof of Identity” (KYC):

1. Valid Passport or VISA
2. Residential Address proof
3. PAN card or if the customer does not have a pan card, Form 60
4. Photographs of the applicant (Passport-Size)
5. Driving license/Voter ID/Letter issued by Embassy
6. PIO card, which the GOI issues
7. Proof of Indian Citizenship 

2. Documents depicting “Proof of Income”:

• Bank statements for the past 6 months

1. CBR (Credit Bureau Report)
2. Details of any current loans
3. Contract from an employer or any letter showcasing employment
4. Salary Certificate attested by the Embassy
5. For self-employed individuals – P&A or balance sheet for the past years

3. Documents related to the property being purchased:

• Buyer Agreement

1. Title and Prior Deeds
2. Tax Receipt of the Land
3. Certificate of Possession
4. Building Plan (Approved by the appropriate authorities)
5. Sketch or design of the property

Kindly note that the financial institution may require more documents to finance the loan. 

What is the process of obtaining the loan?

The NRI Customer can obtain the loan by filling out the required forms and submitting them to the bank along with the necessary documents. The bank will evaluate if the loan can be provided to the customer per the documents. Once approved, the NRI customer can obtain the home loan by signing the loan agreement.

What are the best NRI Home loans in India?

With multiple banks offering home loans to NRI, these are some of the best NRI housing loans available in India:

Final Words

NRI customers can fulfil their dreams of owning a house in India by obtaining home loans. Customers must evaluate the loans various banks offer before making an informed decision. With this article, we have made an effort to bring you closer to owning your dream home!