Why you need to opt for an NRI home loan ASAP

One of the best investment opportunities for non-resident Indians (NRIs) is property. And now is perhaps the best time to invest with the Indian real estate market booming. Both the banks and the government are offering a helping hand to NRIs by offering a NRI home loan at the same rates as they apply to resident Indians. But getting home loans for an NRI in India isn’t the easiest thing in the world.  A lot of documentation is required and the government has very strict regulations for when it comes to NRI home loans. However, in recent times the Reserve Bank of India has relaxed some of its policies, thereby making it easier for NRIs to fulfil their dream of buying a home of their own in their country.

If you’ve been wanting to invest in property in your home country, there cannot be a better time to do it. First off, most banks have the same rate of interest on their home loans for NRIs as they do for resident Indians. In a few cases the interest rates may be a little higher, given that these loans have higher risk factors as compared to those given to residents.

The prerequisites for a person applying for an NRI home loan is that she/he should have worked in a foreign country for over a year. In the case of self-employed people or for those who run their own businesses this requirement is extended to three years. The rules for self-employed NRIs are slightly stricter than those for salaried NRIs. It is easier for a salaried person to get an NRI home loan, than it would be for a taxi driver or small business owner.

The main documents that you need to have if you want to apply for an NRI home loan are your passport, proof of residence, education qualifications, your PIO card, work permit, your latest salary slips, appointment letter of your current employer and bank statements of at least six months. These are the basic requirements, banks may ask for added documentation as proof but they are subjective to the banks.

The minimum income for the applicant to be eligible for an NRI home loan is different for different banks but the on an average, one must have an income of 30,000 USD or 35,000 DHM (for people residing in the UAE).

If you’re an NRI, this is perhaps the best time for you to invest in your country. So what are you waiting for? 

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