According to RBI, NRI refers to “an Indian citizen which holds valid documents like Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad”. If you are an NRI or Non-Resident Indian and would like to take home loan for your house in India, then you can consult with the Banks and Housing Finance companies in India.

To apply for a home loan, you must know the basic criteria that the Indian Banks and Finance Companies require to sanction your loan. Below are the points that mention the eligibility criteria for home loan:

· Your age must be at least 21 years old.

· If you are a salaried applicant, your minimum period in abroad should be of 1 year.

· If you are a self-employed applicant or businessmen, your minimum period in abroad should be of 3 years.

· The maximum age limit for a salaried applicant is 60 years or retirement age whichever is earlier. Note that it is the age of the applicant at loan maturity.

· The maximum age limit for a self-employed applicant is 65years. Note that it is the age of the applicant at loan maturity.

· The NRI loan applicant’s minimum qualification requires that an applicant must be a graduate.

· The minimum monthly income of the NRI home loan applicant must be $2000. However, it may vary, in case of the Housing Finance Companies.

Similarly, there are some credentials that an applicant needs to submit to apply for a home loan. These credentials include:

· An applicant’s valid passport.

· Copies of Visa.

· An applicant needs to submit the work permit document that supports the NRI status before the proposed borrower.

· Power Of Attorney that an applicant owns.

· The applicant also needs to show the present employment status details to the concerned bank or agency.

Now, you are wondering about the “Processing Fee”. The Processing Fee charged by any bank includes 0.5% fee with service tax of loan amount.

There are different types of NRI home loans that are available for NRIs. These forms include:

· POA: In this, the NRI clients appoint an Indian citizen as a POA or Power of Attorney to act on behalf of them.

· NRIs can make repayments either through Post Dated Cheques or Electronic Clearing Services.

· NRIs cannot claim tax benefits on Home Loans in India However, if they pay tax in India for income earned in India, they can claim, for tax rebate, for the Home Loan.

Gaurav Khurana is an expert on NRI Home Loan.. He is the Founder Director of DIALABANK.COM (Call 60011600) and Ex National Sales Head – ING Investment Mgt India and Vice President Citibank N.A