Benefits NRI Home Loans

• Monthly falling interest rates are appealing.
• Fixed and adjustable interest rates are available.
• Part-payment option with no costs.
• Personal accident insurance is provided at no cost up to the amount of the loan.
• Door-to-door service in India till payout.

NRI Home Loans Eligibility Criteria

The NRI home loan is available to people who have been living outside of India. The loan tenure, loan amount sanctioned, and interest rate will be determined by the customer's profile, age of the customer at loan maturity, age of the property at loan maturity, the specific repayment scheme chosen, and any other terms that may be applicable based on the lender bank/prevalent NBFC's norms.

• Salaried – Should have lived abroad for at least 1 year
• Self-employed – Should have lived abroad for at least 3 years

Documents Required for Personal Loan

The following are the documents required to apply for the NRI Home Loans

Personal details documents

• 1 passport-sized recent photos of each candidate (applicant and co-applicant) with signature across the bottom
• All candidates must provide copies of their valid passports.
• All candidates must have valid visa copies.
• Fees must be paid using a cheque or draught in INR (at the appropriate rate), and the date must be in the dd/mm/yyyy format*.
• All candidates must sign a Power of Attorney paperwork in bank format.
• All applicants must sign an authority letter in the format prescribed by the bank.
• Company information in bank format
• All loan applicants must provide a copy of their most recent abroad residential verification documentation. (Driver's licence, bank statement with abroad address, most recent insurance premium receipt, electricity bill).
• Copy of PAN Card for the first applicant OR Form 60 in accordance with the bank format supplied below, together with self-attested address evidence for all applicants

Financial details documents: for salaried individuals

• a copy of the most recent appointment letter OR Copy of a wage certificate that clearly states the date of hire, the current salary earned, and the position held in the firm.
• a duplicate of prior appointment letters
• Last three months' pay stubs for fixed-income employees and four months' pay stubs for variable-income employees
• Last six months' bank statements that clearly show pay credits in the account

Financial details documents: for self-employed individuals

• Copy of Proof of Business Income Incorporation -
• Middle East: Audited/C.A certified P&L accounts for the last two years.
• CPA compiled/reviewed/audited P&L accounts for the last two years in the United States and Canada.
• Others: C.A. or comparable certified/audited P&L accounts for the last two years.
• The collaboration agreement (in case of a partnership firm)
• The company's MOA and AOA (in case of a private limited company)
• Bank statements for the previous six months under the company's name
• Bank statements for the previous six months under the individual's name
• Proof of business profile and office address

NRI Personal Guarantor documents

If you have chosen an NRI Personal Guarantor for your loan, you must supply the following papers.

• Copies of the NRI Guarantor's passport and visa
• Proof of the NRI Guarantor's current abroad address. (Driver's licence, bank statement with abroad address, most recent insurance premium receipt, electricity bill)
• Documents proving the guarantor's current income.

Important factors NRIs need to remember before applying for a Home Loan

Loan Repayment

According to RBI regulations, repayment must be made in rupees through an account in India or through the use of NRE or NRO accounts. If the property is rented, the rent receipt can be used to the Equated Monthly Instalments (EMI)

Tax benefits

NRIs, like native Indians, can benefit from tax breaks on house loans under sections 24 and 80c. Section 80c allows NRIs to claim tax exemption on interest paid up to Rs. 2,00,000 and Rs. 1,50,000 on principal paid. If it is a joint loan with another NRI or resident Indian, each participant can take advantage of the tax benefits individually.

Restrictions in property owned

The Government of India has made it clear that an NRI may only possess two residences in India. That is, they are limited to owning only two residential residences. They can only own two properties, even if they rent them out. They can possess an unlimited number of business properties but not agricultural property.