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A Checklist for NRIs Seeking Home Loans in India

If you are an NRI looking to avail of a home loan in India, we list a few things for you to keep in mind while applying:
1.      Eligibility
Keep in mind the following three criteria for an NRI:
  • Should be at least 18 years and maximum 60 years of age.
  • Should have been employed abroad for at least two years, or should be serving a valid job contract abroad for a minimum period of two years.
  • Should have an NRE/NRO account from which he needs to apply for loan.                                                                                                                                                            
2.      Documents
Documents like a copy of the passport and a copy of the works are required only for NRI loans. Property-related documents like original title deed for a minimum period of the last 13 years; agreement of sale/construction; approved plan/license or receipts for havingthe margin money from the NRE and/or NRO account in India will be required for applying for loan.
3.      Amount of Loan
The loan amount should not exceed 85 per cent of the cost of property. In case of Indian residents, banks can lend up to 90 per cent of the cost of property. The size of the loan depends upon the borrower’s repayment capacity. However, there is a maximum limit. For instance, HDFC offers loans of up to Rs 1 crore.

4.      Tenure for NRI Home Loan

The time period for NRI Home loan is shorter than that of a regular home loan. Mostly, banks give home loan to NRIs for a period of 15 years.
5.      Repayment:
The NRI has to pay the EMI cheques through his non-resident-external (NRE)/ non-resident-ordinary (NRO) account. He cannot make payments from his savings account (if any) in India.

6.      Tax benefits

There are no tax benefits for NRI customers taking home loan, unless they file returns and become eligible to avail of tax rebates available for such loans.

The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We strongly recommend you to seek professional guidance pertaining to your query or doubt.

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