Home Loans for NRI's

A Non Resident Indian (NRI) as per FEMA 1999 is an Indian citizen or Foreign National of Indian Origin resident outside India for purposes of employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period.An individual will also be considered NRI if his stay in India is less than 182 days during the preceding financial year.

A Person of Indian origin (PIO) is a citizen of any country other than Pakistan, Bangladesh or Sri Lanka
Who

• At any time held an Indian Passport,
• He or any of his parents or grand parents was a citizen of India,
• Is a spouse of an Indian Citizen or a person referred to above.

Indians everywhere should become enlightened International citizens.Wherever you are, whichever country you live, enrich that nation, not only in financial terms, but also with your sweat knowledge and dignity since that is the tradition of the country from where you came.At the same time, remember we have a common umbilical connectivity to our motherland, India.
A P J Abdul Kalam
Hon'ble President of India
at the 3rd Pravasi Bharatiya Divas held from 7 - 9 Jan 2005 at Mumbai

SALIENT FEATURES

Why home loan

Home loans for NRIs & PIOs can be sanctioned for the following reasons.

• To purchase, construct a new house or flat/apartment thereon.
• To extend/renovate/ repair an existing house/flat/apartment
• To purchase an existing house/flat/apartment which is not more than 20 years old (home acquisition plan).
• To purchase a plot for construction of a lodging unit.
• To purchase furnishings and consumer durables, as a part of the project cost.

Eligibility criteria

• Minimum age should be 21 years at the time of commencement of loan in all cases and up to the age of 58 years or less at the time of maturity of loan.
• Valid Indian/foreign Passport
• employed overseas for at least 2 years
• Minimum net monthly income (NMI) of Rs 22500(app. £ 265) or minimum Net Annual Income (NAI) of Rs 270000(app. £ 3180).
• Valid work permit
  

Loan Amount
Minimum loan amount: approx Rs 3, 00000(app. £ 3529)

Maximum loan eligibility:

48 times NMI/4 times NAI for applicants below 45 years of age

36 times NMI/3 times NAI for applicants above 45 years of age

Maximum loan eligibility :
48 times NMI/4 times NAI for applicants below 45 years of age
36 times NMI/3 times NAI for applicants above 45 years of age

Subject to the following :

Maximum loan amount for repairs and renovation : Rs.10 lacs
Maximum loan amount for purchase of plot for construction of house : Rs.20 lacs
Maximum Loan amount for purchase of furnishings and consumer durables : 10% of the project cost, subject to a maximum of Rs.3 lacs.

Aggregate repayment obligations should not exceed 50% of NMI/NAI
Margin : 15%

Processing Fee : 0.50% of the loan amount (incl. service Tax)

Advocate's fee and Valuer's fee extra

Interest:

• Interest rates are same as applicable for resident Indian borrowers for various tenures.
• Interest is applied on daily diminishing balance basis

Maximum Repayment:

For NRI/PIO aged up to 45 years : 20 years

For NRI/PIO aged 45 years and above : 15 years

Subject to liquidation of loan by the age of 60 years or the age of retirement which ever is earlier

Mode of Re-Payment

• Remittances from abroad through normal banking channels
• Out of funds in NRE/FCNR/NRO accounts
• Remittance out of local funds by close relatives. Moratorium period
• In respect of construction of new house/flat - 24 months from the date of first disbursement or 2 months after completion, whichever is earlier
• In other cases - 2 months after last disbursement

Security

• Equitable mortgage by deposit of title deeds
• Registered Mortgage may be taken when considered necessary
• Additional security by way of lien over credit balances in deposit accounts, NSCs, Life policies ,Third Party Guarantees etc. may be taken, if security is either inadequate or not free from encumbrances