NRI Home Loan

NRI Home Loan

A non-resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily immigrated to another country for six months or more for employment, residence, education or any other purpose.NRI can avail loan of two types of Loan ie called as NRI Home Loan and NRI Personal Loan.

The Indian real estate market is attractive for non-resident Indians (NRIs) as it is easier to earn in a stronger currency and pay in Indian rupees. Things also becomes easier as they can avail Home Loans from banks in India to purchase property here.

Owning a home is a dream for most of us and thanks to the diverse Home Loan schemes available to make that dream a reality. How is this different in case of Non- Resident Indians (NRI)? Is it equally easy for them to obtain a Home Loan and own the property of their choice? NRI Home Loans are now easily available in India, subject to fulfillment of certain conditions. NRIs can avail Home Loan to purchase property in India. Though it's called NRI Home Loan, it's just like the loan offered to the resident Indian in many respects. Each bank has maintained a list of approved places for NRI's. NRI's working in this countries find it very easy to get an approval on their Home Loan. NRI's working in places which are in negative may not be able to get Home Loans.

  • Our expertise to get u the right Banks / Institute to fulfill your requirement.
  • Loan repayment in flexible tenures from 1 year up to 30 years.
  • Lowest Rate of interest compare to any other loan.
  • Part Payment Facility without penalty.
  • Balance transfer facility.
  • Home Loan Top Up Facility.
  • Nil prepayment charges.
  • Applicant and Co- Applicant to the loan.
  • Tax Benefits : The effective rate of housing loans is much lower than the nominal rates quoted by the banks/housing finance companies because of the tax benefits.
  • Minimum/Hassle free Documentation.
  • Convenience of doorstep service.

There are several steps in the NRI Home Loan process. Here are the steps in brief:

  • Application form & Document Submission
  • Cibil report check
  • Residence verfication
  • Office
  • Eligibility calculation
  • Technical & Valuation
  • Personal Discussion
  • Credit decision
  • Offer Letter
  • Submission of Property documents & legal check
  • Registration of property documents
  • Signing of agreements and submitting post-dated cheque
  • Disbursement

Salaried

  • Indian co Applicant (Relative)
  • More than three year experience
  • The minimum age of the Applicant should be 25 years
  • The maximum age of the Applicant at loan maturity should be 58 years

Under the RBI regulations, the repayment of the Housing loan by NRIs can only be made by remittances from abroad through normal banking channels or through NRE/NRO account. The amount must be payable in Indian Rupees only.

List of Documents for NRI and Co applicant

  • 1 passport size latest photograph of each applicant (applicant & co-applicant) with signature across
  • Valid passport copies for all the applicants
  • Valid visa copies for all the applicants
  • Cheque / Draft in INR for fees (as per applicable rate) and the date must be in.
  • Pan Card copy of Co Applicant
  • Address Proof of Co Applicant (Latest Telephone Bill /Electricity Bill)
  • Power of Attorney document as per Bank Format duly signed by all the applicants
  • Authority letter duly signed by all the applicants as per Bank specified format
  • Company details as per our format
  • Copy of current overseas residential verification proof of all the applicants to the loan. (Driving license or bank statement showing overseas address or latest insurance premium receipt or utility bill)
  • Copy of PAN Card for the Ist applicant OR Form 60 as per bank format
  • Self attested address proof of all applicants
Are Non Resident Indians (NRIs) allowed to acquire or dispose immovable property in India?
Yes! The Reserve Bank of India has clearly granted permission to all Non Resident Indian's (NRIs) to acquire & dispose immovable property in India, be it Residential or Commercial Property.
Can an NRI give a Power of Attorney to a person in India for completion of loan formalities on their behalf?
Yes! NRIs can definitely appoint a Power of Attorney to complete all loan formalities towards the purchase of a property in India, considering the fact that an NRI wouldn't be in India for long periods. The formalities followed by Indian banks, only means that the appointment of a Power of Attorney would be ideal.
What are the conditions if the power of attorney is being executed outside India?

It is advised that the Power of Attorney is preferably a Resident of India. Having said that, there would be certain procedures which have to be followed in order to execute the same:

• The execution of the power of attorney must be done on a stamp paper or plain paper, as the case may be in the country where the power of attorney is being executed.

• The signatures of the executants have to be attested by an official of the Indian Embassy, Indian Consulate or Trade Commissioner, in the country where the executants reside.

• The signature of the attorney should be verified in India by a Notary, his employer or his banker on a separate piece of paper which should be submitted to Banks / NBFC's together with the Power of Attorney.

Can NRIs purchase a house or flat for residential purpose through the help of Financial Institutes in India?
Yes! The RBI has granted permission to financial houses to provide loans to NRIs for the acquisition of house/flats for self occupation, subject to banking terms and conditions. Although, the repayment of the loan needs to be completed within a 15 year period, through inward remittances or out of the funds held by the investors in their respective NRE/NRO or FCNR Accounts.
When can I apply for a NRI Home Loan?

Owning a property is a dream come true for every individual so we at Creative Finserve suggest you to apply for NRI Home Loan once you intent to buy a property so that you will come to know the eligibility of your NRI Home Loan which will help you to identify the property according to your budget. Even if the property is selected you can apply for a NRI Home Loan.

How can I get personalized solution through Creative Finserve for my NRI Home Loan?
We professional at Creative Finserve puts our best effort to give you a complete personalized solution. We take the pain of coordinating with various banks for you to give the best offer and service available in NRI Home Loan.
Who are eligible for NRI Home Loan?

The general factors taken into account while determining the eligibility of NRI Home Loan are listed below:

1. Age (Min. 25 Year)

2. Maximum 58 age at time of closure of the loan for the salaried

3. Total work Experience 3 yrs

4. Salaried

5. Non Resident Indian

Who can avail a NRI Home Loan?
Any working individual who is salaried and who is capable of paying EMI can avail a NRI Home Loan.
What is the process in availing a NRI Home Loan?

The process involved in availing the NRI Home Loan is as follows

• Application

• Processing

• Documentation

• Property Valuation

• Personal discussion

• Sanctioning of the Loan

• Disbursement

What are the loan tenure options for NRI Home Loan?
NRI Home Loan generally is available for 1year to 15 years.
What are the documents required for applying for a NRI Home Loan?

Following are the list of the documents for NRI Home Loan

Personal Documents
  • 1 passport size latest photograph of each applicant (applicant & co-applicant) with signature across
  • Valid passport copies for all the applicants
  • Valid visa copies for all the applicants
  • Cheque / Draft in INR for fees (as per applicable rate) and the date must be in.
  • Power of Attorney document as per Bank Format duly signed by all the applicants
  • Authority letter duly signed by all the applicants as per Bank specified format
  • Company details as per our format
  • Copy of current overseas residential verification proof of all the applicants to the loan. (Driving license or bank statement showing overseas address or latest insurance premium receipt or utility bill)
  • Copy of PAN Card for the Ist applicant OR Form 60 as per bank format
  • Self attested address proof of all applicants
NRI Financial Documents
  • Visa stamped on passport
  • Copy of the employment contract
  • If the contract is in any language other than English, the same has to be translated into English and counter signed by the employer/Indian Embassy.
  • Latest salary slips (Certified) for the past 6 months.
  • Identity card issued by the present employer.
  • Continuous discharge certificate (if applicable)
  • Latest work permit.
  • If you are working in merchant navy, contract slip with income details.
  • Non Resident External (NRE), FCNR, NRO and International account passbook sheets.
  • Overseas Bank account statement for the past six months.
  • Power of attorney in favour of local representative in India.
How Much NRI Home Loan can I avail from the bank?
It mainly depends on your financial profile, credit reputation, and your loan repayment ability. Lenders evaluate these factors to consider what the amount of a NRI Home Loan should be.
What is the range of interest rates offered in NRI Home Loan?
In in NRI Home Loan interest is calculated on a monthly reducing basis which means interest is calculated on outstanding principal amount after payment of each installment
What is NRI Home Loan EMI?
EMI or Equated Monthly Installments is a combination of Interest and Principal you will be paying to the bank every month.
In NRI Home Loan can I prematurely (prepay) close my loan?
Closing loan prematurely is called full closer of the loan. This is very much possible in NRI Home Loan once the lock in period of the loan is over. This exit clause is always mentioned in the Loan Agreement signed with the bank. In NRI Home Loan you can prepay the loan with no penalties as per New RBI guidelines.
And how long is this sanction letter valid in NRI Home Loan?
In NRI Home Loan the sanction letter is valid for 3 months to give you sufficient time to choose a flat/house of your choice.
What security/collateral do I have to provide in NRI Home Loan?
The property which you will be purchasing itself will be mortgage with the bank.
Does the property have to be insured in NRI Home Loan?
Yes,property has to be insured in case of NRI Home Loan.
What is the Floating Rate of Interest in NRI Home Loan?
This is the rate of interest that fluctuates according to the market lending rate.
In NRI Home Loan can I apply jointly with my spouse? Will both our salaries be taken into consideration for calculating the loan amount?
Yes, your salaries can be clubbed for the purpose of calculation of the loan amount. This can be done either when the property is jointly held with the spouse or the spouse stands as a guarantor.
How can I repay my loan in NRI Home Loan?
The repayment of loan is done through Equated Monthly Installments. It can be paid through Post Dated Cheques (PDC) or Electronic Clearance System (ECS)
How much time does it take for the disbursement of NRI Home Loan?
The processing of NRI Home Loan usually takes approx 25 working days after all the documents are submitted. Subject to clearance of legal and technical of your Property papers.
Should I compare NRI Home Loan online?
Comparing NRI Home Loan online depends on many factors such as your salary, company in which you are working, your obligation (existing loan) etc,. In online approach you will get general comparisons while you can get a personalize solution from Creative Finserve, which will help you with the best rate of interest and services for NRI Home Loan.
Should I apply NRI Home Loan online?
There is no process for applying online NRI Home Loan unless and until you have a relationship with the same bank. Mandatorily you need to submit relevant documents and sign the application form to complete the formalities. Creative Finserve gives you a personalized solution for NRI Home Loan, so why to confuse yourself with online approach if you can get better rate of interest and maximum eligibility through Creative Finserve.
Who all can apply NRI Home Loan online?
Customers having online banking can approach their respective banks for NRI Home Loan through net banking and get information about NRI Home Loan. Appling online NRI Home Loan will give you information of your bank, and if you apply through us you will get information about other banks for better rate of interest, foreclosure charges, tenure and processing fees.
What are the drawbacks on applying for NRI Home Loan online?
Appling online NRI Home Loan will give you information about particular bank. And if you apply through us our professionals will get exciting offers from other banks for better rate of interest, foreclosure charges, tenure and processing fees.
How to get best rate of interest for NRI Home Loan?
Rather than hunting in the market or approaching unprofessional consultants for better offers give your few details and upload your few documents and get a personalized solution for your NRI Home Loan for better rate of interest in few minutes from our professional team.
How will I get best rate of interest for NRI Home Loan?
Since Creative Finserve has immense experience and tied up with all multinational and private banks, we would be able to guide you and give you the best deal available in NRI Home Loan
What is NRI Home Loan EMI calculator?
NRI Home Loan emi calculator is a process where you will be able to come to know the exact NRI Home Loan emi (installments) which includes principal and interest component according to your requirements.
How to choose the right bank for my NRI Home Loan?
Choosing a right bank for NRI Home Loan is a cumbersome process, Creative Finserve guides you properly according to your requirements and gives you a personalize solution for your NRI Home Loan.
How I will come to know whether my NRI Home Loan is sanctioned or rejected?
Once your NRI Home Loan is sanctioned or rejected you will get a sms alert or call from the bank or and if you have applied through us we will coordinate with the respective banks and inform you.
Is balance transfer of NRI Home Loan suggested?
It depends upon the current rate of interest of your existing NRI Home Loan as against the rate of interest available in the market. We recommend you to compare both the offers in our loan comparison calculatoror else call us to get a personalized solution for your NRI Home Loan.
What is the difference between NRI Home Loan & Mortgage Loan?
The loan availed to purchase a new residential property ( builder purchase or resale) by NRI is called NRI Home Loan. Loan taken by hypothecation of property (residential / commercial) is known as Loan Against Property. The money procured by this type of loan can be used for many different purposes.
Any one qualifying the parameters of income & property can avail NRI Home Loan or Loan Against Property.
How do I know about my eligibility for a NRI Home Loan?

Every bank has its own method for calculating eligibility so Creative Finserve team will work on the basis of the details provided by you to get the best deal.

Can the co-applicant's income get included in NRI Home Loan when banks calculate my eligibility?

Yes in NRI Home Loan the banks also add-up the co-applicants income to determine the eligibility.

The eligibility is based on the years remaining for retirement & the income.

How long will it take for the financial institution to approve my NRI Home Loan?

Lenders sanction NRI Home Loan for salaried customer in 25 working days.

What is EMI in NRI Home Loan?

"EMI" is Equated Monthly Installment.

The installment paid while servicing the loan is equal for the whole tenure.

The composition of EMI = Principal Amt + Interest.

What is Fixed interest rate in NRI Home Loan?

In NRI Home Loan Rate of interest will remain same throughout the tenure is fixed interest rate.

What is Reducing interest rate in NRI Home Loan?
Interest which is charged on the reduced outstanding principal amount (Loan Amount).
What is Floating interest rate in NRI Home Loan?
It is also called Variable Rate of Interest:- Here the rate of interest changes according to the banks policy, it is also known as floating Rate of Interest.
Can the loan amount be decreased after the NRI Home Loan is sanctioned?

Yes, the loan amount can be decreased by the Bank if the customer's requirement is lesser than the sanctioned amount.

Can the loan amount be increased in NRI Home Loan after sanctioning?

Yes in few conditions you can get the loan amount enhanced / revised.

For E.g

If the income eligibility is there and you have applied for lesser loan amount or,

If you have not added co-applicants income while applying the loan or,

If your salary has increased after your Home Loan sanctioned than with the revised salary slip you can ask bank to increase the loan amount.

What is Pre-EMI in NRI Home Loan?

Where you have availed only a part of NRI Home Loan, you would be required to pay Banks/NBFC only the interest on the amount disbursed till the full loan is availed. This interest is called pre-EMI interest and is payable monthly till the final disbursement of NRI Home Loan is made, after which the EMIs would commence.

What does "Pre-Approved Property" mean in NRI Home Loan?

Pre Approved property NRI Home Loan is also called as APF [Approved Project Finance]. This means that the developer had got the legal aspect of the property approved form various banks and NBFC's, Under such circumstances banks need not required to do technical verification if the customer has selected the property in the said project.

What is Carpet area?

Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual useable area of an apartment, office, unit, showroom etc.

What is Built Up area?

Built up Area consists of carpet area, area covered by inner and outer walls and additional areas mandated by the authority such as flower beds, dry balcony etc.

What is Super Built-Up area?

Super Built Up Area is the built up area plus proportionate area of common facilities such as the lobby, lifts, shaft, stairs, etc. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc. This term is therefore only applicable in the case of multi-dwelling units.

What is approved plan?

The building plan made by the developer which is approved by the Municipal Corporation or the concerned authority is approved plan.

What is full form of CC & explain?

CC means Commencement Certificate. A commencement certificate is issued by the local authorities to allow the builder to begin construction once all norms have been met. Unless the commencement certificate is granted, the construction is illegal. It is subsequent to the approved plan. During Home Loan CC is very much important document required for sanctioning your loan specially when it is under construction project.

What is full form of OC & explain?

OC means Occupation Certificate. This certificate issued by the local municipal body to the builder / developer once the said building is complete in all respects and fit for occupation. During Home Loan OC is very important document required for sanctioning your loan.

What dose conveyance deed mean?

Conveyance is the act of transferring ownership rights of the property (plot of land where the building is built) from the developer / builder / development authority to the society.

What is share certificate?

In a society share certificate is issued to its members (flat owners); it is a legal document that certifies ownership of a specific distinctive number of shares in a society. Share certificate will bear the seal of the society & will be signed by the Chairman, and the Secretary. During Home Loan Share Certificate is very much important document required for sanctioning your loan.

What is a stamp duty?

It is a duty collected by the state government. It is paid as per the true market value as assessed by the Stamp Office. Stamp duty is decided by the respective State and hence would vary from state to state. When an agreement is to be franked, it needs to be unsigned and undated.

Where is the registration done?

The agreement should be registered with the Sub-Registrar of assurances under the provisions of the Indian Registration Act. Stamp duty is to be paid prior to the Registration.

What is Chain of Agreements in NRI Home Loan?

In NRI Home Loan chain Agreements is chain of all the agreement right from its first purchase from the builder to the present owner. During NRI Home Loan process we need to submit the chain of agreements to the banks/NBFC to do technical and valuation of the said property.

What is the minimum area needed for a residential property In NRI Home Loan?

The minimum area required in NRI Home Loan is 500sqft. It may vary from bank to bank.

What is legal Verification of the property and who does it in NRI Home Loan?

In NRI Home Loan legal verification is a process where all the agreements & documents related to the concerned property are given to a lawyer to verify the legal and title of the concerned property. It is done by panel of qualified lawyers appointed by the Banks/NBFC.

What is called as technical verification and who does it in NRI Home Loan process?

In NRI Home Loan technical is a process where the valuator assigned by the BANK/NBFC evaluate the cost of the property, checks its permissions and the condition of the building. It also checks whether the property is mortgagable and free from all legal issues.

Whait is full form of OCR in NRI Home Loan?

OCR means Own Contribution Receipt. It is the amount paid by the purchaser to his seller and a receipt acquired for the same. It is advisable for the purchaser to pay his own contribution to the builder / seller by cheque and obtain receipts for the same.

What is the full form of NOC in NRI Home Loan & who issues it?

NOC means No Objection Certificate. It is asked by the lenders from builders/society on their letter head. In this letter the builder / society mentions that they have noted in their books the charge created by them on the said property. All Banks/NBFC have their own format which builders/society need to oblige. To obtain this all the dues & transfer charges of the society need to be cleared. It is mandatory to the committee to issue the NOC in the prescribed banks format under Maharashtra Co-operative Society Act, 1960 u/s 79(2)(a).

What is Full form of MV & explain?

MV is called as Market Value. It is the actual cost of the property in a particular area at that point of time.

What is the full form of LTV in NRI Home Loan?

LTV - Loan to Value Ratio It is the percentage of Loan amount that can be provided with respect to the Value of the property.

In NRI Home Loan When is the case disbursed & cheque given to buyer?

The case is disbursed & the cheque is given when all process is complete i.e. Loan agreement is signed, PDC's, ECS, NOC is given. The original documents of the property is mortgaged and submitted & all the pre-disburse conditions is complete.

What is equitable mortgage in NRI Home Loan?

An equitable mortgage is the transfer of an interest in property to a lender as a security for a loan of money on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. Bank/NBFC give this loan by deposit of title deeds of the property (interest) with the lender.

What is Registered mortgage in NRI Home Loan?

In this case property is registered with sub-registrar and charge is created against the property in Government records.

In NRI Home Loan can a fixed rate loan be converted to a floating rate loan and vice versa?

Yes! This process is called as switching (from fixed to floating & vice versa. Firstly to switch the Bank/NBFC must have attractive fixed / floating rate options. Lenders charge switching charges. This clause is generally mentioned in the loan agreement which is signed before disbursement.

What happens to processing or administrative fees if I don't avail of the disbursement in NRI Home Loan?

Once the case is sanctioned the banks charge the customers Processing / Administrative charges. There is also certain validity of the sanction letter. After that time the bank may or may not revalidate the sanction letter on the charges paid earlier.

Even if one dose not avail disbursement banks rarely return charges taken from the customer which they have already collected.

What is NRI Home Loan Balance Transfer?

NRI Home Loan balance transfer is a process where the customer transfers the existing NRI Home Loan from present banker to a new one. This is done either to get a rate benefit or if a customer has a service issue with the bank.

What does 'Agreement to Sell' mean? Does it have to be registered?

The 'Agreement to Sell' in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc.
In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

What does encumbrance refer to?

Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is critical that during your home search you consider properties which are free of encumbrances of any sort.

What is an under construction property?

An under construction property refers to a home which is in the process of being constructed and where possession would be handed over to the buyer at a subsequent date.

In under construction project how is NRI Home Loan disbursal done?

In case of an under construction property, Banks/NBFC will disburse your Home Loan in installments based on the progress of construction, as assessed by Banks/NBFC and not necessarily according to the developer's agreement. You are advised in your own interest to enter into an agreement with the developer wherein the payments are linked to the construction work and not pre-defined on a time-based schedule.

Can the properties (Residential/Commercial) be given on rent if not required for immediate use?

Yes! There is no clause by the RBI, which restricts an NRI to rent the properties acquired by them. The amount received from rentals can also be repatriated back to the country they are residing in, without any restriction.

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