Every year thousands of Indians travel abroad and settle there for educational and professional purposes. The people of Indian birth or descent who live outside the Republic of India are known as Non-Resident Indian (NRI) or Person of Indian Origin (PIO). As per 2017, there are nearly 31.2 million NRIs around the globe. The NRI community has been contributing in the development of India from time to time. They invest and support the economy and other social causes as well.
NRIs often buy wish to buy property in India, a home to be specific. They intend to buy a house for their families back in India, for investment purposes or for their own future plans. An NRI can buy a house by taking a home loan from any bank or NBFC in India. But every leading bank and NBFC across the nation has some very specific requirements when it comes to NRI home loans. So if you are an NRI planning to get a home loan in India, know what you will require.
Know the documents required
Banks and NBFCs in India have specified a list of documents required for an NRI to get a home loan. The loan applicant should gather all these documents at first and then should start applying for home loan. The documents required for NRI home loan are as following:
Copy of visa
Current address proof
Permanent address proof
Employment related details: appointment letter, salary slips, contract of employment
Know your eligibility criteria
The eligibility criteria for an NRI to get a home loan are very much similar to the criteria required for a regular Indian citizen. The criteria differ from lender to lender as per their lending policies and terms & conditions. It always varies as per the profile of the loan borrower. Here is a generic list of eligibility criteria required for NRIs to get a home loan in India:
A specific age bar designated by loan lender
A minimum 2 years of work experience in abroad
Specific limit of yearly earning
Know about EMIs
The structure of home loan EMIs for NRIs is as same as for regular Indian citizen. The interest rate may vary as per the policies of the loan lender. Also the loan tenure for NRIs is shorter compared to regular Indian citizens. In very few cases loan lenders allow the tenure of 20 to 30 years for home loan. But many NRIs get loan tenure of around 10 to 15 years.
Know how to repay your home loan
Repaying the home loan is very easy for NRIs. They can pay the EMIs from their residing countries via non-resident rupee (NRE), normal banking channels, or a non-resident ordinary rupee account (NRO). The loan repayment amount is accepted only in Indian rupees not in the currency of their residing countries.