Home Loans for NRIs: Know your paperwork

When looking for an answer to which country to apply for Home Loans, many NRIs prefer heading back to their roots in India. As such, many banks and NBFCs cater to NRI Home Loans. While the process and the documentation follow the same blueprint as a normal Home Loan, there are certain other requirements that you need to know about.

Documents required to avail a Home Loan

Proof of ID and address
You will need to submit a copy of a valid passport, voter’s ID, Aadhaar card, or driving license to your lender. Some banks and NBFCs have detailed KYC documents showcased on their website, which you can read when researching. You would also need to submit your current residential address, which would be your overseas address.

Proof of income
When you decide to apply, Home Loan lenders will scrutinise your finances to see whether you’re capable of repaying the loan. For this, you’ll need to provide them with copies of your employment contract or appointment letter, the last 3 salary slips or certificates detailing your income, date of joining, passport number, designation, and bank statements for your NRE/NRO accounts in India.

Depending on the financial institution you choose, and whether you’re a salaried individual or a self-employed one, you might need to provide other financial details as well.

Other documents
A photocopy of your visa and application form (with passport-sized photographs) are some of the other documents required for home loan that you’ll have to provide.

Property documents
Once the other details have been given, the applicant will need to hand over a copy of the allotment letter, or the buyer agreement, along with the proof of payments made to the developer.

Co-applicants and guarantors

Co-applicants for any loan help increase the odds of getting the loan sanctioned. If there’s a co-applicant, then the documents of both parties need to be submitted with the application.

Loan applicants need to have a guarantor if there is no co-applicant. If a guarantor is mentioned, then they need to submit the following documents:

Passport copy
Visa copy
Current address proof
Current income proof

If these documents are submitted to the overseas branch of an Indian bank or NBFC that is located in another country, it will be sent to India. The overseas office is a mere mediator, the real process starts once the documents reach India.

With these home loan documents submitted, and verified, your ability to repay the home loan will come into question. If all the criteria are met and the processes are in order, your Home Loan will be approved.

Nitin Arora is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has worked extensively in the finance sector and has been dealing with the entire range of loans. He has written numerous pieces on home loans, business loans, doctor loans, EMI loans etc. and how they affect the customer in the present market scenario. He has been dealing with a host of reputed clients associated with the financial industry. He has an MBA in finance from Yale Business School as well as years of experience delivering seminars on sound financial practices and debt management. Nitin has also amassed a great name for himself as a financial blogger.

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