One of the most attractive aspects of getting a loan in India for NRIs is the opportunity to earn in a better paying currency abroad and pay the loan in Indian Rupee. It is an exciting concoction to think about in the first place. However, getting a loan for NRIs in India is a tricky business and there are several procedures to follow.
If you are one of such NRIs who wants to get a home loan, then keep reading to find about everything you need to know about getting one.
As you would know, NRI is any person who stays outside India for a variety of purposes such as for employment, vocation or business with an intention to reside, for an unclear time, outside India. There is another provision that says that if a person has stayed in India for less than 182 days, he/she would also be considered an NRI.
Another important thing that would come as a balm to the NRIs trying to get a loan is the fact that the procedures are more or less the same as the case with an Indian resident.
However, the following elements are to be kept in mind.
- Education: Most of the banks would require you to be a graduate to be eligible to apply for a loan.
- Income: Income upon which the loan would be sanctioned would be the repatriable income and the income generated in India if any.
However, education may not become extremely rigid and may be waived by the bank if deeded not necessary in certain cases.
The Documents Required
This is perhaps the most important aspect of getting a loan from any bank for an NRI. The general documents required are the copies of;
- The passport
- The valid visa and work permit
- The contract of employment
- The work experience certificate
- The salary certificate and
- The statements of non-resident external (NRE) or non-resident ordinary (NRO) accounts
You must also get the salary certificate attested from the respective embassy if it is not credited to a bank account. Most of the banks would also require the NRI to produce the copy of the local address proof and a PoA or power of attorney to anyone residing in India.
In order to submit the documents, you do not have to travel all the way back to India. Most of the banks do have branches in places such as Dubai, London, Singapore and other popular destinations for Indians. It must also be kept in mind that most banks offer the facility online, as well to make it all the easier.
The Amount of Loan
As per the earning capacity and the income of the individual the amount availed can be different. There are banks such as Citi Bank that offer up to 5 crores as loans. And it must also be kept in mind that the Loan to value of the house you are building is 80-85% of the total amount required for construction.
While for residents there are different tenures available with a period of up to 30 years. However, for NRIs, the normal tenure can range from 5 years to 15 years.
We hope that you were able to get most of the details you would like from the post. And while considering getting a loan, ensure that you check with multiple banks for multiple plans and get the best one to settle with.