Buying a house is not a Herculean task for the NRIs anymore as availability of NRI Housing Loan makes property investment lot more convenient. Any individual staying abroad for employment or for carrying on business or vocation outside India or for any other purpose in circumstances indicating an indefinite period of stay abroad are eligible for NRI Housing loan. Apart from that, government servants posted abroad on duty with the Indian missions or deputed abroad on assignments with foreign Governments or regional/international agencies are also entitled to these loans.

NRI Housing loan is offered by some of the premier financial institutions and banking in India such as ANZ Grindlays Bank, ICICI Bank, HDFC, HUDCO, CITIBANK, LIC etc. As an NRI, you can avail a maximum loan of Rs.1, 00, 00,000 or 85% of the cost of the property, including cost of the land, whichever is lower. The rate of interest will vary from 11.25% to 14.25% per annum depending on the financial institution. At the time of making application for the loan a processing fee is payable which will vary between 1% to 2% of the loan amount applied for depending on the institution.

The amount of loan to be borrowed will depend upon a person’s repayment capacity. Repayment capacity takes into consideration factors such as income, age, qualifications, work experience, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation, alternate employment prospects when the concerned person returns to India and savings history.

While applying for a home loans in India the following documents are to be submitted along with the application:

1. Employment/Residency related documents:

• Employment contract
• Latest salary slip.
• Latest work permit.
• Identity card issued by current employers.
• Visa stamped on the passport.
• Continuous Discharge Certificate (if applicable).
• Overseas Bank Account Statement for the last four months.

2. Property Related Documents:

• Receipts for payments made for purchase of the dwelling unit.
• Copy of approved drawings of proposed construction/purchase/extension.
• Agreement for sale/sale deed/detailed cost estimate from Architect/Engineer for property to be purchased/constructed/extended.
• Allotment letter from the co-operative society/association of apartment owners.

3. Power of attorney

Once the loan is sanctioned, the period of repayment of the loan is determined which normally falls in the range of three to ten years. Loan can be repaid through Equated Monthly Installments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement. EMI is payable every month, by the end of that month. EMI payments are to be made through post dated cheques from your NON-Resident (External) Account/Non-Resident (Ordinary) Account in India.

Note: People of Indian origin, holding foreign passports are not eligible to obtain loans from Housing Finance Companies.