NRI Housing Loans is a product which is best suited for Non Residents who desire a home own in their home town. It is a product which offers NRIs the option to purchase a New or Resale property or to build a house in the plot which they own or to buy a plot and construct a house on it. This product is limited to the NRIs who are salaried only. There are very few banks which take self employed NRIs into consideration for funding to their needs.
The process for obtaining a Housing loan, being an NRI, is very simple. The bank will have a General power of Attorney which should be notarized in the country where the customer is residing and send it across to the bank for submission. The lists of documents are the same as for salaried residents for the loan process. The NRI needs to submit his/her ID, Age, Residential, Income, Tax deduction, banking proofs to the banks along with the credit report all which are duly signed by the applicants. The credit report is same as CIBIL statement here in India. He then needs to assign a blood relative as his GPA holder to process the loan application and to sign on behalf of him on all his loan documents. The GPA holder can be a father, mother, brother, sister; father in law, mother in law. One cannot nominate his friends as his GPA holder for loan processing. The GPA holder also needs to submit his ID, Age and residential Proofs and the property documents with Agreement of Sale and link documents.
The bank will verify the employment status of the NRI through email mailed to the HR of the company. There will be no further verifications of NRI and the bank will verify the GPA holders address and details here in India. The eligibility will be calculated taking his/her gross/net Income into consideration along with age and the product which the customers choose. If any discrepancy is found in the credit statement of the GPA holder, it will affect the process so it is recommended that the customer be aware of one’s credit history before making him/her as GPA.
Banks will verify the legality of the property and evaluate it according to its market value. The funding will be done up to a maximum of 80% of the property cost (Technical Value), Agreement value or the sanctioned amount whichever is less.
The following points should be noted in the home loan process for NRI’s especially
- GPA holder is mandatory for processing a home loan application for a NRI
- Maximum age of GPA should not cross 65 Years
- Maximum age considered for NRI is 58 Years
- All the repayments are given at a maximum period of 15 years
- Funding will be released once the documents get registered in the applicant’s name
- For semi-finished apartments and houses the funding will be released depending on the construction stage of the property
- Funding will be done for properties with in the geo limits of the bank
- GPA notary is mandatory in the residing countries which in turn will be validated in INDIA
- TAX Benefit is not applicable for NRI’s on any type of loans