Eligibility & List of Documents Required for NRIs Home Loan

Many NRI (Non-resident Indians) wish to invest in buying a home in India. Some people purchase a home here mainly to spend their old age after retirement, while others invest here to generate an alternative income source. Irrespective of your objective to invest in the Indian real estate market, if you are an NRI, you can easily get the necessary funds through a home loan.

Many lenders in India, including banks, HFCs (Housing Finance Companies) and NBFCs (Non-banking Financial Companies) offer home loan solutions that are specially designed to meet the needs of the NRI borrowers. While you can easily find a lender that is willing to give you an NRI home loan at a competitive interest rate, to get the amount you must meet the eligibility requirements and comply with the documentation.

Eligibility for NRI home loan

  • One of the important criteria that most lenders consider for home loan is the applicant’s age. It plays a huge role in determining the amount you can borrow. You must be aged between 18 and 65 years at the time applying for a loan.
  • You must be a salaried employee or a self-employed individual and have a steady source of income. If you are applying for a joint home loan, the co-applicant too must have a steady income.
  • In case of joint home loan application, the co-applicant may or may not be the co-owner property, but all co-owners of the property must be co-applicants.
  • You can avail of a NRI home loan to purchase a new ready-to-move-in house, resale home, or to construct a home on the plot you own.
  • You can also get a home loan for home improvement/extension of the existing home.

Documents required for NRI home loan

The documents required for NRI home loan vary for salaried and self-employed individuals.

Salaried Individuals

  • Identity proof
  • Proof of residence
  • Copy of valid passport and visa
  • Proof on income – salary slip, appointment letter or the employment contract letter issued by your employer overseas, copy of the bank statement for at least six months reflecting salary credit
  • Copy of NRE or NRO bank account statement
  • Copy of the latest credit report issued by reputed credit bureaus
  • Property-related documents – copy of sale agreement, allotment letter issued by the builder, title deed, NOC obtained from the concerned local authorities, copy of the project’s blueprint, OC (occupancy certificate), etc.
  • Other documents – passport size photographs, a cheque drawn in the favour of the lender to pay the processing fees, home loan application form duly filled and signed.

Self-employed Individuals

  • The documents required for self-employed individuals are the same as for the salaried individuals (as listed above). You must submit proof of identity, residence, income, and property-related documents. However, there are a few differences which are listed below.
  • Proof of income – depending on the nature of your business, you must submit copy of the MoU, copy of partnership deed, copy of commercial trade license, copy of current bank account statement, copy of NRE or NRO bank account statement
  • A cheque drawn in favour for the lender to pay the processing fee
  • Passport size photographs
  • NRI home loan application form duly filled and signed

Final Word

With easy availability of NRI home loans in India, you can make your dream of owning a home in your motherland come alive. Make sure that you know the eligibility and documents required by the lender beforehand and be prepared so that you avoid the risk of delay in the loan approval process.

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