Indian citizens who stay abroad for employment or for carrying on business or vocation outside India or for any other purpose in circumstances indicating an indefinite period of stay abroad.

Government servants who are posted abroad on duty with the Indian missions and similar other agencies set up abroad by the Government of India where the officials draw their salaries out of Government resources.

Government servants deputed abroad on assignments with foreign Governments or regional/international agencies like the World Bank, International Monetary Fund (IMF), World Health Organization (WHO), and Economic and Social Commission for Asia and the Pacific (ESCAP).

Officials of the State Government and Public Sector Undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad

Documents required for Resident Indians as well as for NRIs for getting Home Loans are different in some respect.

Home loans For NRIs are available for the construction of new houses/flats, purchase of old houses / flat addition/alteration to an existing house, and repairs/renovation, etc. NRIs can avail of loans by mortgaging an existing residential property. However, for availing of home loans, NRIs have to fulfill certain conditions according to provisions of the Income Tax Act. They should have stayed in India for a period of 182 days or more within an assessment year or they should have stayed in India for at least a total of one year or more.
The FDI Policy that permits FDI up to 100% from foreign/NRI investors under the automatic route has boosted NRI confidence. Banks have attractive NRI housing schemes to accommodate the housing needs of NRIs. From the stables of HFCs, NRI housing finance plans with suitable repayment options are available.
Last but not the least, NRIs should take due care while selecting their home loan provider companies or HFCs. Considering the geographical distances involved, it is significant that loan seekers associate with a proactive and responsive HFC.

The eligibility criteria of NRIs differ from Resident Indians based on a few parameters. The parameters include:

Age: The loan applicant has to be 21 years of age.

Qualification: The NRI loan seeker has to be a graduate.

Income: The loan applicant has to have a minimum monthly income of $ 2,000 (although, this criterion may differ across HFCs). The eligibility is also determined by the stability and continuity of your employment or business.

Payment options: The NRI also has to route his EMI (Equated Monthly Installments) cheques through his NRE/NRO account. He cannot make payments from another source say, his savings account in India.

Number of dependants: The eligibility of the applicant is also determined by the number of dependents, assets, and liabilities.

An NRI applicant is eligible to get a home loan ranging from a minimum of Rs 5 lakhs to a maximum of Rs 1 crore, based on the repayment capacity and the cost of the property, which although is variable by the priorities of the home loan provider. Also, Home Loan Tenure for NRIs is different from Resident Indians. An applicant will be eligible for a maximum of 85% of the cost of the property or the cost of construction as applicable and 75% of the cost of land in case of purchase of land, based on the repayment capacity of the borrower.

However, an NRI can enhance his loan eligibility by applying for home loans with a co-applicant who has a separate source of income. Also, the rate of interest for home loans to NRIs is higher than those offered to Resident Indians. The difference is to the extent of 0.25%-0.50%. Some HFCs also have an internally earmarked ‘negative criterion’ for NRI home loans. As such, the NRIs who hail from locations that are marked as being ‘negative’ in the books of HFCs, find it difficult to get a home loan.

The Reserve Bank of India (RBI) has clarified that Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO), purchasing immovable property in India should pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country.

The NRIs and Resident Indians can also acquire immovable property in India other than agricultural property, plantation, or a farmhouse. It has issued certain directives for sanctioning home loans to Non-Resident Indians. The guidelines provided are:

The home loan amount should not exceed 85% of the cost of the dwelling unit, as the remaining amount which is 15% needs to be provided as own contribution towards the cost of the unit financed.

The cost of the dwelling unit which is own contribution financed less the loan amount can be met from direct remittances from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account, and /or Non-Resident (Ordinary) [NR (O)] account in India.

However, repayment of the loan, comprising of the principal and interest including all the charges to be remitted to the HFC from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and /or Non-Resident (Ordinary) [NR (O)] account in India.

The repayment option for NRIs is they can pay through the funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999, and the regulations made by the RBI from time to time. As most of the home loan provider companies consider the economic stability of the applicant, home loans for NRIs are quite feasible because they are well in economic resources.

Indian citizens who stay abroad for employment or for carrying on business or vocation outside India or for any other purpose in circumstances indicating an indefinite period of stay abroad.

Government servants who are posted abroad on duty with the Indian missions and similar other agencies set up abroad by the Government of India where the officials draw their salaries out of Government resources.

Government servants deputed abroad on assignments with foreign Governments or regional/international agencies like the World Bank, International Monetary Fund (IMF), World Health Organization (WHO), and Economic and Social Commission for Asia and the Pacific (ESCAP).

Officials of the State Government and Public Sector Undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad

Documents required for Resident Indians as well as for NRIs for getting Home Loans are different in some respect.

Home loans For NRIs are available for the construction of new houses/flats, purchase of old houses / flat addition/alteration to an existing house, and repairs/renovation, etc. NRIs can avail of loans by mortgaging an existing residential property. However, for availing of home loans, NRIs have to fulfill certain conditions according to provisions of the Income Tax Act. They should have stayed in India for a period of 182 days or more within an assessment year or they should have stayed in India for at least a total of one year or more.
The FDI Policy that permits FDI up to 100% from foreign/NRI investors under the automatic route has boosted NRI confidence. Banks have attractive NRI housing schemes to accommodate the housing needs of NRIs. From the stables of HFCs, NRI housing finance plans with suitable repayment options are available.
Last but not the least, NRIs should take due care while selecting their home loan provider companies or HFCs. Considering the geographical distances involved, it is significant that loan seekers associate with a proactive and responsive HFC.

The documentation required to be submitted by the NRIs is different from the Resident Indians as they are required to submit additional documents, like a copy of their passport and a copy of the works contract, etc. And of course, NRIs have to follow certain eligibility criteria in order to get Home Loans in India.

Another vital document required while processing an NRI home loan is the power of attorney (POA). The POA is important because, since the borrower is not based in India; the HFC would need a ‘representative’ ‘in lieu of’ the NRI to deal with and if needed. Although not obligatory, the POA is usually drawn on the NRI’s parents/wife/children.

Passport and Visa

A copy of the appointment letter and contract from the company employing the applicant.

The labor card/identity card (translated in English and countersigned by the consulate) if the person is employed in the Middle East Salary certificate (in English) specifying name, date of joining, designation, and salary details.

Bank Statements for the last six months.

Original title deeds tracing the title of the property for a minimum period of the last 13 years.

Encumbrance Certificate for the last 13 years.

Agreement of sale /construction, if any

Receipts for payments made for the purchase of the dwelling unit.

Approved plan/license.

ULC clearance /conversion order etc.

Receipts for having invested the margin money through normal banking channels from the Non-Resident (External) account in India and/or the Non-Resident (Ordinary) account in India.

Latest tax paid receipt.

Allotment letter from the co-operative society/association of apartment owners.

Agreement for sale/sale deed /detailed cost estimate from Architect / Engineer for property to be purchased/constructed/extended/improved.

Copy of approved drawings of proposed construction/purchase/extension.

Photocopy of PIO card.

If the PIO card is not available, photocopies of any of the following documents

The current passport, with birthplace as ‘INDIA’.

The Indian passport, if held by the individual earlier.

Parents/grandparents Indian passport/birth certificate/marriage certificate

substantiating the individual’s claim as a person of Indian origin.

Signing a title report (received from the solicitor of the property) with any fine print and specific government reservations is inadvisable. Accept clearance reports that are lucid and specific. For instance, if you are interested in buying a property that has been built over reclaimed land, make sure that the building has been given clearance by the government. Precautionary measures will prevent you from getting embroiled in any future disputes. They will also help ensure that your home loans aren’t scrutinized.

Before construction begins; the builder must seek several permissions and approvals from relevant bodies. Without these clearances, the construction may come under litigation. Here is a list of documents and approvals that the builder must possess for all building work to commence in the Gujarat State

ULC order (in specific cases)

IOD and CC of the project

Approval from Regional Municipal Corporation