Month: June 2011

NRI Home Loans Basics and Process

NRI Housing Loans a product which best suits for Non Residents who are dreaming about having a own house in their home town. It is the product which offers all the NRI to purchase a New or Resale property or to built a house in the plot which already they own or to buy a plot and construct a house on it. This product is limited to the NRI people who are salaried only. There are very less banks which take self employed NRI into consideration for funding to their needs.

The process for having Housing loans being a NRI is very simple. The banks 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 same as salaried residents for the loan process. A NRI person need 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. NRI need 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. A GPA holder can be a father, mother, brother, sister, father in law, mother in law and the final option is a Brother in Law. One cant keep his friends as his GPA holder for his 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 banks will verify employment 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 found in the credit statement of the GPA holder will affect the process so it is suggestible to the customers to be aware of ones credit history before making him/her as GPA.

Banks will verify the legality of the property and evaluate according to the 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 below points to 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 75 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 ones documents gets registered on the applicants 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 to be validate din INDIA.
  • TAX Benefit is not applicable for NRI’s on any type of loans.

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