If you are residing outside India and contemplating of availing a home loan to own your dream home in India, its for you. NRI homes loans are prevalent in India and made available with as much ease as to a resident Indian. However, these loans are slightly different in terms of eligibility, terms and conditions, documentation, etc. Lets look at the features that make the product different from regular home loans for resident Indians.
A Slightly Different Product
At the outset, NRI home loans are made available for the purposes of buying plots, under construction property, freehold property, renovation and maintenance of properties, etc. For extending advances to people who are not currently living in India, all banks and NBFCs go by NRI definition, specified by RBI, i.e., "An Indian citizen who holds a valid Indian passport and stays abroad for employment or carrying out business or vocation under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI."
However, not all NRIs can avail NRI home loan. For the same, an NRI has to be a graduate, with a minimum monthly income of USD 2,000 in residing country in dollar terms. These limits may vary marginally from bank to bank. For instance, ICICI NRI Home pegs the minimum income level requirement at USD 30,000 per annum for salaried employees.
Besides, the tenure for which NRI home loans can be availed is shorter as compared to tenure in regular home loans schemes. The loans tenure for NRIs extends from 7-20 years, which can be extended to 25 years in exceptional cases. The authority to extend home loan tenure comes under sole discretion of the bank.
Unlike regular home loan for Indian residents, NRIs can avail home loan for maximum 80-85 per cent of the value of property, depending upon an individuals gross monthly earnings (GMI). Generally, this amount is up to 36-40 times of the GMI, subjected to a maximum limit specified by the bank. Few banks also use