Understanding More on Home Loan for NRI
The non-resident Indians (NRIs) are interested in purchasing real estate property in India for two reasons - strong currency and payment is to be done in Indian rupees. They can also acquire home loans from Indian banks. For application purpose of home loan for NRI, various documents are required such as passport, work permit, visa, employment contract and many. All these documents are required to be in valid form.
Before applying, comes the eligibility
For becoming eligible for a home loan application in India, NRI applicants must show their true income levels earned abroad. Banks have provided specific parameters for evaluating income levels of the applicants. Secondly, educational qualifications play a significant part in becoming eligible for home loan. Graduation is the minimum requirement to avail home loan for a NRI.
The application process
Banks have also become lenient in laying down the home loan application process for NRIs. But they are strict with regards to the accuracy, reliability and validity of their documents. They have a stringent approach towards the verification of the documents.
Documentation
The NRI applicant must produce the following documents: passport copy, visa, contract employment, work permit, certificate of work experience, salary certificate and statements of NRE or NRO accounts. The NRI applicant must get the attestation of the salary certificate from the Embassy authorities in the case the salary is not credited to the bank account. NRI must also give proof of local address in India. Moreover, he is required to grant power of attorney (PoA) to a person in India. The PoA can be granted to a relative or a qualified Chartered Accountant. The granting of power of attorney is significant on the part of the bank. If the applicant defaults in the loan repayment, then the bank can get hold of the person to whom the power of attorney is granted. Another compulsory requirement is to provide details of the permanent address in India.
The submission process
The submission process of home loan application is relatively easy for a NRI. NRIs are not required to make frequent trips to India solely for the purpose of home loan application. Many of the banks have worldwide branches in other parts of the world such as London, New York, Dubai, Abu Dhabi and so on. The NRI applicant can apply for a home loan in one of these branches where he resides. Due to the advanced internet technology, most of the banks provide the home loan application facility online. NRI applicant can operate his home loan account from the country where he resides currently. He can easily make loan repayments, view his home loan status and ask any query to the bank.
Never to forget list
NRI applicants must never forget to execute a PoA to someone in India. Always keep the valid and correct documents ready. You must understand the entire Know-your–customer (KYC) process of the bank in which you are applying for a home loan. Lastly, check whether the bank levies prepayment penalty in the case you decide to repay the entire loan amount before its tenure completion.
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Owning a house is a dream of many. It is also a dream of those who do not live in their native countries. Everyone desires to buy a house in their home-countries. And hence, Indian banks have diverse home loan schemes, even for NRIs and PIOs to fulfill this dream. By fulfilling the eligibility criteria the NRIs can also get a loan to build their home in India. The article above explains the entire process efficiently. Good job!
NRI’s have an added advantage of the currency factor and an emotional one. To own a house in your motherland is a matter of pride. But to own some points like to grant power of attorney to a local resident is necessary. Along with it the valid passport,visa, salary attestation from the embassy is a must for NRI’s.