The interest rate of home loans has rapidly declined post-COVID-19 pandemic. Moreover, property prices have also lowered in tier 1 cities. This has prompted India to become one of the leading investment and home buying hubs, especially among the NRI or OCIs.
Before proceeding further, let us first understand who comprises the Non-Resident Indians (NRI) or Overseas Citizens of India (OCI). A person can be granted the status of NRI if they:
Most NRIs wish to buy houses in India for two major reasons – investment purposes and for their loved ones. Whichever the case may be, the application process requires certain documents. This includes KYC documents, income documents, Power of Attorney, and property documents. Thus, if you are an aspirant, you would need to provide all these documents in order to qualify for the home loan.
The following are some of the usual KYC documents required for the home loan application process.
These are all the KYC documents you need in order to apply for a home loan as an NRI. Besides this, you also need to submit your income and property documents.
During the time of home loan application, if the NRI applicant is not present in India, the financial institution might share the application form copy. It will then be printed and sent to the applicant’s residing country so that they can fill and sign it themselves. Now in the post-pandemic era documentation can be done digitally by NRIs.
In case of the applicant’s absence in India, the financial institutions can also ask for an attested or notarized copy of KYC documents from the Indian Embassy and Consulate.
An English translation of all application documents is mandatory. If any document is written in a specific local language of the applicant’s residing country, they need to provide a translated document. Please note that in the case of income documents, you need to get the translated copies signed by the respective employer.
The Non-resident Indian needs to have a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account. This is because the financial institute sets up the ECS (Electronic Clearing Service) in that account.
The income of the NRI applicant is converted into Indian Rupees before evaluation. The financial institutes follow a fortnight-weighted average conversion rate since it is tough to calculate daily conversion rates.
Please make sure to go through the list of all the KYC, income, and property documents before applying for a home loan in India. Additional documents might be required as it varies from applicant to applicant. In recent times, countless money lenders are offering competitive home loan interest rates for NRIs. Moreover, the application process is also simple, transparent, and fast if you fulfill all the criteria and have the required documents. Thus, there is no better time to buy a home than now.
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