What is NRI home loan? Buying a home in the country is the most laid back investment for the nonresident Indians. Taking a home loan in India for a buying a house is always better. NRIs are allowed to take home loan in India they are called as NRI home loan. These loans are offered by various banking and non-banking institutions. Here are the requirements that are required to avail for a loan and how it differs from the normal home loan taken by a resident Indian.
A nonresidentIndian should meet the criteria on the age and the years of work experience abroad. The criteria varyacross from lendinginstitutions to institutions. The number of years a NRI should work out of the country for availing for a house loan interest is 2 years. If you’reself-employed should have stayed in the foreign country for at least 3 years. Also the term and conditions differfrom country to country. It is different for the NRIs that stay in the gulf countries and different for the nonresident Indians who stay in the European and American countries.
For the process of documentation you will need a copy of your password, visa and employment related documents. You will need the documents of the salary slips, the appointment letter, the employment contract and the address proof. Because all these documents are mandatory. These documents are sent to the Indian branch of processing for the verification. The overseas branches just collect and send the documents to the Indian banks every paper work happens in the Indian branches.
Earlier there were differences in the interest rates that are charged for the nonresidents and for the residents of India. But now the interest rate charged for both of them are the same. Also the loans which are sanctioned to the NRIS are large as compared to the resident Indians. The processing which capped over the NRI home loan is very nominal which 1-2 %of the loan amount.