No matter how the situation of the global economy is, the real estate market in India is a lucrative investment option for NRIs. The RBI allows them to purchase immovable property, including residential and commercial assets. The Indian market also offers consistent returns on their investments.

Many banks and financial institutions registered with the National Housing Bank (NHB) offer a home loan for NRI in India so that they can fund their housing requirements and stay whenever they pay a visit to the country. The interest rate that they receive on these loans is the same as what banks offer to citizens of India.

For buying a property in India, the money should come through banking channels only. NRIs can pay the loan amount in instalments along with the NRI home loan interest rate using remittances from outside India through their foreign currency accounts maintained in India. They can also issue post-dated cheques but cannot use traveller’s cheques or foreign currency for the payment.

Every individual must follow the eligibility criteria for an NRI home loan which varies between banks. Here are some points that banks consider before approving and sanctioning the loan amount:

• Salary criteria: For NRIs, there is a minimum salary criterion. For instance, those working in any of the Gulf Cooperation Council countries should have a minimum monthly income of AED 5,000. For those working in the US, the minimum monthly salary should be USD 3,000.
• If the applicant is self-employed, then they should have a residence status for a minimum of three years abroad.
• Professional and educational qualifications also play a significant role. Individuals applying for NRI home loans should be at least graduates.

Here is a list of documents required for the home loan:

Salaried applicants:

• Passport and visa
• PIO/OCI card
• Appointment letter and contract from the concerned company
• Labour/identity card
• Bank statements of the last six months
• Salary certificate or wage slips
• Utility bills for address proof
• Power of Attorney (POA) – if any
• Income Tax Returns of the last two years

Self-employed applicants:

• Passport and visa
• PIO/OCI Card
• Appointment letter and contract from the company employing the applicant
• Labour card/identity card
• Last six months bank statements and NRE/NRO account details
• A brief profile of the applicant and trade business licence
• Computation of income, P&L account and balance sheet of the last three years attested by the CA
• Utility bills for address proof
• Power of Attorney (POA) – if any
• Income Tax Returns of the last three years