NRI Home Loan FAQs

Your eligibility will be based on various factors like your income, age, qualification, number of dependents, co-applicant's income, assets, liabilities, repayment history, status of existing loan, work experience, savings history, stability of income, continuity of job, etc.

It usually takes minimum of 5 to 6 working days after you have applied for NRI Home Loan along with required documents.

You can pay either by any of the following ways:

• Post dated cheques (PDCs)
• Standing Instructions
• Internet Banking
• Electronic Clearing System (ECS)

Loan to Value (LTV) expresses the ratio of a loan to the market value of the asset mortgaged. The loan is often given in the range of 70% to 80% of the market value of the property.

If you are an individual then your spouse, your parents or your major children can become your co-applicants. The co-owner of a property has to be a co-applicant but a co-applicant need not be the co-owner of the property.

Yes. In maximum number of states in India, the agreement for sale between the builder / seller and the buyer is required to be registered.

The loan will be disbursed in full or in suitable instalments taking into account requirement of funds and progress of construction, as assessed by the lenders.

You need to provide security of the property and/ or any other additional collateral security as may be asked by the lender for availing NRI home loan.

Your spouse can be added as a co-applicant for your NRI home loan which will help you enhance your loan eligibility. Please note that if there are any other co-owners of your home then they all also need to be co-applicants.

Moratorium Period in home loans is a specific period of the home loan tenure where borrowers will not have to repay any amount. The meaning of moratorium is a waiting period before the customer starts repayment of EMIs at the decided interest rate.

An NRI is an Indian citizen who stays outside India:

1. for purposes of carrying out employment or any business or vocation;
2. under circumstances indicating an intention to stay outside India for an uncertain duration;
3. any Indian citizen deputed outside India for a temporary period in connection with employment.

A citizen of a foreign country (other than a citizen of Bangladesh or Pakistan) is a PIO if

1. he/ she at any time held an Indian passport; or
2. he/ she or either of his/ her parents or any of his/ her grandparents was a citizen of India; or
3. spouse (not being a citizen of Bangladesh or Pakistan) of an Indian citizen or (a) or (b) above.

An EMI stands for Equated Monthly Instalment. It is a fixed amount which you pay every month towards your loan repayment. It is consisted of both principal as well as interest payment.

The EMI will be due on a fixed date every month. This fixed date for EMI will be informed to you when your loan amount is disbursed.

If loan is disbursement partly, monthly interest is payable only on the disbursed amount. This interest is called Pre EMI interest. You need to pay it on monthly basis only till the final disbursement is made, after which the EMIs will start.

A guarantor is a person who guarantees the loan you take. Only an NRI can guarantee a Home Loan taken by another NRI in India. Majority of lenders make it mandatory to have either a co-applicant or an NRI guarantor.

Power of Attorney (POA) is a person appointed by the applicant to complete the formalities and documentation procedures in India who can be any of applicant's relatives. The Power of Attorney is usually apponited from the same city where loan is applied at.

Maximum number of co-borrowers for a home loan is 6.

Processing fee is a fee charged by the lender towards carrying out the loan sanction formalities. It is a certain percentage of the loan amount. However, some lenders levy a minimum, maximum or fixed amount of processing fee.

You can repay the loan by remittance from a foreign country through normal banking channel or through your NRE/ NRO account or out of rental income derived from the impugned property.

As per the RBI guidelines, NRI Home Loan has to be repaid in Indian Rupees only.

Yes. You can prepay your loan before the agreed repayment duration. You may need to pay some extra amount as prepayment penalty, however, these penalty/ prepayment charges may vary from lender to lender. Some of the lenders do not levy any prepayment penalty.

Yes. You can transfer your home loan from one bank to another bank in the wake of lower interest rate offered by another bank. It is advisable to check the switching cost with the bank from which you have availed the loan.

If you have a woman co-applicant for NRI Home Loan, then a 5 basis points reduction in the rate of interest is offered by almost all the banks.

For availing home loan either you can visit the lender or you can apply it online through website of the lender. Almost all banks and other lenders have made the process online for applying for NRI Home Loan.

As per the RBI guidelines, an NRI is allowed to buy only residential and commercial properties in India. Being an NRI, you are not allowed to buy agricultural land or plantation property.

EMI has 2 components which are interest and principal. Interest is calculated on daily reducing balance basis on the principal outstanding on the loan, the principal on which the interest is charged gets reduced every month.

Lenders usually offer both Fixed and Floating rates on NRI home loan. The difference between both are explained below: Fixed Home Loan rate: The rate of interest applicable will be fixed for a part of the tenure of the loan Floating Home Loan rates: The rate of interest applicable for the Home Loan changes with change in the Bank's base rate

You can avail a maximum tenure of 30 years which varies from lender to lender depending upon age of the applicant, repayment capability and property value.

Salaried applicants are likely to get a slightly lower rate compared to the self-employed because of less risk involved.

Your original property documents will be returned within 15 days from the date of closure of loan with us.