Buying a house is dream for many citizen. It is a life time achievement for many in our country because of the cost associated with buying or constructing a new house. If you are a NRI (Who are NRIs?), it is quite easy for you to afford a house in India with your abroad income. The rules and regulations for offering home loans to the NRI customers are relaxed and it is more convenient for a NRI customer to get a home loans buy applying for outside India. This article explores how a NRI can get the home loans. If you are a NRI and have doubts, please post it in the comments section. The following are the common reason why you need a home loans.
- Buying a Villa
- Buying a new apartment
- Home improvement work
- Extending your house
One can get the home loans for all the above needs.
How to Apply for Home Loans?
If you are willing to buy a house when you are in abroad, it can be done through your relatives in India. Say for example, your father in India want to apply for a home loan on behalf of you, the following are the steps.
- Walk into the banks and get the Authorized Power of Attorney form
- Send that form to your address in abroad
- You need to fill the form with the signature from embassy official and send back to your father
- Showing the form to bank, your father can carry out all the formalities to take the home loans on your name
Required Documents for Home Loans
The following are the necessary document to apply for a NRI home loans .
- Your company’s job offer letter
- Salary slip
- Proof of work permit in your country
- HR letter or any proof from the company to apply for the loans
- Proof of passport with Visa stamp
- Approval plan for the house
- Sale deed of the house (Original and Xerox)
- Encumbrance Certificate (EC) (Minimum for 13 years)
- Estimation and cost break up of the house
All the above documents must be submitted to the bank to process your loans. The processing of the loans would go through verification and site visit, etc. If there is any issue or dispute on the land or approval, the loan application will be rejected by the bank.
Eligibility to Apply for the Loan
Every bank has their own rules for approving the loan applications. The following are the basic eligibility for a NRI home loan:
- You must be minimum 21 years old.
- For NRI applicant, maximum age limit is 60 years or retirement age (whichever is earlier) at the time of loan maturity.
- If salaried applicant, you should have been abroad for a minimum period of 1 year.
- If self-employed applicant, you should have been abroad for a minimum period of 3 years.
Apart from the above conditions, there is restrictions on the income to be considered for the eligibility. It also different for each banks.
These are the basic details which is required for applying the NRI home loans. If you are visiting the banks, their representatives would guide you through the process for completing the application and get start building your home. If you are NRI and have applied for a loan in Indian bank, please share your experience here.