NRI Home Loan: Eligibility Criteria & Documentation - Home Loan Stories

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17 MAY, 2021

Raja, an NRI, was visiting India to attend a wedding. After a brief discussion with a friend, he realised that he could maintain a house in India for occasional visits. Unfortunately, he lacked sufficient funds to invest in a home. The friend suggested taking a home loan. However, none of them knew about the procedure of taking an NRI home loan

If you are an NRI and wish to take a home loan in India, it would help if you are aware about its eligibility criteria and documentation. Here is a quick guide to help you with it.

Eligibility Criteria for NRI Home Loan

NRIs can avail a home loan in India to buy a ready-to-move-in house and a property under construction. They can also take a loan for constructing a house or for purchasing a plot of land. The eligibility criteria to avail a home loan for NRIs include the following-

The applicant should not be more than 58 years old at the time of loan maturity.
The minimum educational qualification of the applicant should be graduation.
Applicant should be employed for at least three years.
The applicant should also earn a minimum threshold of income to avail a home loan. The minimum gross salary requirement for -

Taking a loan up to 5 years is-
36,000 Dirhams if living in Gulf countries and 20,000 USD for those employed in Merchant Navy.

Taking a loan for more than five years but up to 15 years -
42,000 USD for those living in the US/UK, 48,000 Dirhams for those living in Gulf countries and 26,000 USD for individuals employed in Merchant Navy.

Documents Required for Home Loan

To avail a home loan in India, the NRI applicant would need to submit the following documents -

Identity proof
Address proof
Photograph
Age proof
Bank statements for the last six months
Copy of contract, appointment letter or employment letter.
Power of attorney
Salary certificates

He/she might also be asked to furnish a copy of the work permit, valid visa, passport and details of the business if any.

In a Nutshell

It is no longer difficult to avail a home loan in India even for an NRI. Once they complete all the formalities, the applicants can easily fulfil their dream of purchasing a house in India. Also, the loan repayment can be done through NRE or NRO accounts in Indian rupees. You can apply for an NRI home loan from Kotak Mahindra Bank and enjoy benefits like attractive interest rates, simplified documentation, quicker turnover time and higher eligibility.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.