How to Get a Property Loan in India: A Foreigner’s Guide

The real estate sector of India is constantly growing. With the lucrative currency rates, having a property seems to attract the Non-Resident Indians (NRIs). Investing in Indian real estate allows foreigners to earn better returns. The growing demand for property in this country is another reason that attracts foreigners. Income tax saving is yet another good reason for the residential real estate investing in this country for the NRIs.

The easy availability of home loans for NRIs in India makes it easier for them to buy a property. Sites like AddressOfChoice offer property loans to the foreigners to allow them to easily purchase land or plot in this country without much financial burden. But there are certain criteria that they need to follow to avail the property loan. Some of the considerations of availing the property loan in this country are listed below:

  • Eligibility Criteria

The eligibility criteria differ from the policies of the different banks in India. There are a minimum and maximum age limit of availing the home loan. The average age of NRIs limit varies from 18 to 70 years, which differs as per the respective banks. Educational, as well as the professional qualification, also plays an important role in India. The NRI interested in having a property in India must be a graduate. The foreigner can be a salaried or self-employed individual with minimum years of experience as specified by the financing bank.

  • Required Documents

The NRIs require submitting certain authentic documents to avail of the property loan in India. The primary documents include the valid visa and passport of the NRI. Certificate of work experience and salary certificates are also important documents. The bank statements of the NRE or NRO account is essential to be submitted by the foreigner to avail the loan. Some bank also requires the power of attorney of the NRIs to ensure proper repayment of the loan.

  • Loan Amount and Tenure

There is a certain restriction on the loan amount that can be availed to the NRIs who wans to find a home in India. The maximum loan amount differs from bank to bank. The tenure of repayment of the property loan has some restricted duration for the foreigners. It generally varies between 5 to 15 years.

  • Loan to Value Ratio and Loan Interest

According to the norms of RBI, the banks of India can fund only 80% of the total property value. The rest of the amount is to be paid the NRI. The NRI home loan interest rate is the same as the interest rate for the residents of India.

  • Repayment Conditions

The repayment of the property loan can only be made through the NRO or NRE accounts. The repayment must be made through the Indian rupees only.

By following all the conditions, the foreigners can easily avail properties in this country. Fulfilling all the criteria makes the NRI eligible for the property loan in India. While buying a property, the NRIs must ensure legal compliance to make the entire process smooth.