Things to know for Expats while Seeking Home Loan In India
Nov 06, 2018 Home Loan
With the increasing transparency in the real estate market in India, the non-resident Indians (NRIs) have found it more lucrative to invest in. There has been a drastic increase in the number of expatriates as investors in India’s real estate market. However, there is still a lack of transparency and credibility for NRIs. Here is a checklist for NRIs who are seeking to avail of a home loan in India.
The required documents while applying for a home loan include the following:
The required documents while applying for a home loan include the following:
- Passport and visa forms as a part of the Know Your Customer (KYC) exercise
- Permanent address details in India
- Appointment or deputation letter, work permit, work experience certificate and contract of employment
- Your salary certificates and NRE and NRO accounts statements.
- Address proof in the foreign land, verified by your employer and tax return statements from the foreign land.
- A qualification certificate is required to ensure loan eligibility. General Power of Authority (GPA) should be duly notarised.
NRI Home Loan for Co-applicant
A co-applicant is compulsory for NRIs to apply for home loan in India. A guarantor is mandatory if a resident is not available as a co-applicant.Eligibility
For an NRI, the income and educational qualification are critical deciding factors for loan eligibility. Applicant must be a graduate at least. The income may include repatriate income as well as earnings in India for eligibility. Minimum income norms differ from one bank to the other. Most of the banks consider a minimum of $24,000 a year for US-based NRIs, for example.NRI Loan Tenure
The NRI loan tenure is shorter than that of a regular home loan, which is mostly for 15 years.Ratios
Banks allow 80-85 percent of the Loan-to-value ratio (LTV) to NRIs, which subject to the monthly income. Banks impose fixed-obligation-to-income ratio up to 60 per cent for NRIs, based on the income. Interest rates are the same for NRI.Repayment
The repayment has to be done in INR. The GPA holder needs to be present in person, in the bank premises, at the time of loan disbursement as the physical signature is required.The appraising process
The NRIs receive loan appraisal over their official email address. All the details relevant for loan evaluation are discussed and confirmed via email. The applicant’s employment abroad is verified with the employer. Therefore, it is essential that the NRI applicant must inform the human resource department beforehand so that any delays in the loan appraisal can be avoided. Verification could be via a call to verify the employee code, purpose of transfer or designation.Tax benefits
No tax benefits for NRI customers, if they are taking a home loan.Looking for property portal?
Related Articles
-
All You Need to Know about 30 Years Home Loan
Nov 03, 2016 -
-
The FYIs of Construction Loans
Oct 19, 2016 -
What to do While Your Home Loan is Under Process
Jun 12, 2018
See comments (0)
Write a comment
