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Know About NRI Home Loans

Every year many NRIs (Non-resident Indians) apply for a home loan in India. For them buying a home here is a way to secure their family’s future and a means to staying connected to their roots. Today, many lenders offer a wide range of home loan solutions that are specially tailored for the NRI borrowers.

If you, as an NRI, want to buy a home in India and apply for a home loan for the same, you must be aware of the different loan process, eligibility, documentation, etc. The following guide will immensely help you in your home loan application endeavour.

What are the eligibility criteria for NRI home loan?

To avail the funds, you need for home purchase, you must meet the specific eligibility requirements of the lender. The criteria may vary from lender to lender, but largely most lenders have the following requirements.

  • You must be a salaried or self-employed individual with a steady income source.
  • You must be aged between 21 to 65 years at the time of applying for a home loan.
  • You can apply for a home loan individually or you can opt for a joint loan with one or more than one co-borrower.
  • You can avail of a NRI home loan to purchase a ready flat, resale property, under-construction home, or a plot on which you want to build your house.

What documents should you submit to get an NRI home loan?

When you apply for a home loan, you must submit certain documents to the lender. While the list of documents required may vary from one lender to another, you must provide the following basic documents.

  • Identity proof
  • Residence proof
  • Proof of income
  • Copy of valid password and visa
  • Passport size photographs
  • Cheque issued in the name of the lender to pay the processing fees
  • Property-related documents
  • Power of attorney (if you want to authorise an Indian resident to handle the home loan process on your behalf)

What is the maximum amount an NRI can avail as home loan?

Most of the lenders in India provide up to 90% of the property’s value as home loan. However, this is subject to many conditions. The balance amount must be paid from your pocket as down payment. It is an important part of the home loan application process, and it must be paid upfront.

What is the maximum repayment tenure for an NRI home loan?

The repayment term, i.e., the period within which you must repay the amount you borrow may vary based on the EMI amount, the amount you borrow, etc. However, most lenders in India provide NRI home loans for a maximum period of 20 years.

Are NRIs eligible to get tax benefits on home loans?

Yes, as an NRI, you can avail of tax benefits on NRI home loan provided you file your tax returns in India. The tax provisions for NRI home loans are similar to tax benefits for an Indian resident.

You can avail tax deduction up to Rs. 1.5 lakhs in a financial year on the repayment of the principal amount under Section 80C of the Indian Income Tax Act. Also, the interest repayment is subject to tax deduction up to Rs. 2 lakhs

Final Word

Today, as many lenders offer NRI home loans, buying a home has become much easier. But make sure that you know every detail of the loan before you sign the papers. This will help you avoid legal hassles in the future.


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