November 4th, 2016

NRI home loans: The general eligibility norms*

With scores of Indians leaving the country every year to work or settle abroad, the term ‘NRI’ (Non Resident Indian) has become an integral part of popular parlance. Every India wherever they are settled wishes to be connected to its roots. A home back in India is one asset that emanates a sense of belongingness. And buying a home mostly entails applying for a home loan as well. Eligibility norms for NRI Home Loans differ from a resident Indian home loan across a few parameters, though the processing is fairly easy.

There are various eligibility norms for NRI home loans that one must be acquainted with as a basic know-how before applying.

  1. Employment Duration and remuneration: Generally, a salaried NRI must have spent a minimum one year in foreign employment. However, these qualifications may vary with each lender. Lending institutions follow a certain minimum salary norm which varies for each lender. Employment tenure and remuneration form important parameters as the lender draws confidence about the job and income stability.
  2. Credit Rating and existing obligations repayment track: A good credit score and a seamless obligation repayment track adds value to a home loan applicant’s financial profile and helps in obtaining a positive decision of application acceptance.
  3. Loan Tenure: The general repayment tenure is from 15 to 20 years. However, few lenders may offer a tenure lower than 20 years with the maximum age at maturity consideration running up to 70 years of employment in certain professions
  4. Documentation: Documents required include valid passport copy, work permit or visa copy, salary certificate, employment contract, bank statements (NRE/NRO accounts) and work experience certificate.
  5. Power of Attorney: The applicant can appoint any of its relatives as the Power of Attorney (POA) holder in India to complete the formalities and documentation procedures in India. The Power of Attorney holder is preferred to be from the same city where loan is applied at

NRE/NRO accounts are necessary for processing payments and disbursing the loan amount. However, for builder properties, the disbursal may be debited directly into a builder’s account

With over two decades of specialised experience in housing finance, PNB Housing offers a wide range of home loan products to NRIs (Non Resident Indians) and PIOs (Person of Indian Origin) for purchase, construction, repair and renovation of a residential property in India. Ease of applying for a loan with branches spread across India, robust service delivery model and mark to market credit & financial policies help customers build a long term relationship of trust and commitment.

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