Owning a home in India is a dream for many Non-Resident Indians (NRIs). Whether it is to stay connected to their roots or to invest in the booming Indian real estate market, NRIs often seek home loans to turn this dream into reality. Fortunately, financial institutions like Bajaj Finserv offer tailored solutions, making it easier for NRIs to secure a home loan with competitive interest rates, flexible repayment terms, and a seamless digital application process.
In this article, we will walk you through everything you need to know about applying for an NRI home loan in India, from eligibility criteria and required documentation to repayment options and tax benefits.
Eligibility criteria for NRIs applying for home loans
NRIs must meet specific eligibility requirements to apply for a home loan in India. These criteria ensure that lenders can assess the applicant’s financial stability and repayment capacity.
Key eligibility factors:
- Age: Applicants must be at least 23 years old at the time of applying.
- Nationality: The applicant must hold Indian citizenship and reside abroad for employment or business purposes.
- Employment status:
- Salaried NRIs: Must have a stable job with a valid work permit.
- Self-employed NRIs: Must have a proven track record of business income.
- Income requirements: Lenders assess monthly or annual income to determine repayment ability. A co-applicant with a stable income can further enhance eligibility.
- CIBIL score: A good credit score, typically 725 or above, is essential for approval.
Pro Tip: If your CIBIL score is below the desired threshold, consider improving it by repaying existing debts and avoiding late payments. Get started by entering your mobile number and OTP to check your home loan offer instantly.
Required documentation for NRI home loans
When applying for a home loan, NRIs need to provide specific documents to verify their identity, income, and property details. Bajaj Finserv simplifies this process by allowing applicants to submit documents digitally, saving time and effort.
Commonly required documents:
- Proof of identity: Passport, PAN card, or Aadhaar card.
- Proof of income:
- For salaried NRIs: Salary slips, employment contract, and income tax returns.
- For self-employed NRIs: Business financial statements, income tax returns, and proof of business registration.
- Proof of property ownership: Sale agreement, title deed, and property tax receipts.
- Bank statements: At least six months of bank account statements.
- Power of Attorney (POA): If you are unable to be physically present in India, a POA holder can handle formalities on your behalf.
Pro Tip: Ensure all documents are up to date and readily available to speed up the approval process.
Step-by-step process for NRI home loan application
Applying for a home loan as an NRI is straightforward, especially with Bajaj Finserv’s user-friendly online platform. Here is a step-by-step guide:
- Check your eligibility: Use the Bajaj Finserv website to verify your eligibility based on age, income, and credit score.
- Calculate your EMI: Utilise the Home Loan EMI Calculator to estimate your monthly repayment amount based on the loan amount, tenure, and interest rate.
- Submit your application: Fill out the online application form with your personal, income, and property details.
- Upload documents: Submit your documents digitally for verification.
- Get approval: Once your application and documents are verified, you will receive approval within 24 hours.
- Disbursement: After approval, the loan amount will be disbursed to your account or directly to the property seller.
Pro Tip: Applying online not only saves time but also allows you to track the status of your application in real time.
Repayment options and interest rates for NRI home loans
When choosing a home loan, it is crucial to understand repayment options and interest rates. Bajaj Finserv offers competitive rates starting at 7.35%* p.a*, along with flexible repayment tenures of up to 32 years.
Types of interest rates:
- Fixed interest rate: The rate remains constant throughout the loan tenure, providing predictable EMIs.
- Floating interest rate: The rate fluctuates based on market conditions, which can result in varying EMIs.
Example:
If you take a loan of Rs. 1 crore at a fixed interest rate of 7.35%* p.a for 20 years, your EMI would be approximately Rs. 79,970. Use the Home Loan EMI Calculator to customise your repayment plan.
Pro Tip: Opt for a longer tenure if you want lower monthly EMIs, but remember that this may increase the total interest payable.
Tax benefits of home loans for NRIs
NRIs can avail of tax benefits on home loans, provided they file income tax returns in India. These benefits are applicable under the following sections of the Income Tax Act:
- Section 80C: Deduction of up to Rs. 1.5 lakh on principal repayment.
- Section 24(b): Deduction of up to Rs. 2 lakh on interest payment for a self-occupied property.
Pro Tip: If the home is rented out, there is no upper limit on the interest deduction. Ensure to keep proper records of rental income for tax filing purposes.
Pro tips for NRIs applying for home loans in India
Follow these tips to improve your chances of securing a home loan with favourable terms:
- Maintain a strong credit score: Pay off existing debts and avoid late payments to improve your creditworthiness.
- Choose a co-applicant wisely: Adding a co-applicant with a stable income can enhance your eligibility and reduce interest rates.
- Make part-prepayments: If you opt for a floating interest rate, consider making part-prepayments to lower the overall interest burden.
- Leverage online tools: Use the Bajaj Finserv website to calculate EMIs and track your application status.
- Keep a POA ready: If you are unable to be present in India, appoint a trusted person as your Power of Attorney to handle formalities.
Conclusion
Securing a home loan in India as an NRI is simpler than ever, thanks to the tailored solutions offered by Bajaj Finserv Home Loans. With competitive interest rates, flexible repayment options, and the convenience of digital tools, Bajaj Finserv ensures a hassle-free experience.
Whether you are looking to invest in a new property or transfer an existing loan, Bajaj Finserv has you covered. Apply online today and take the first step towards owning your dream home in India!
