Eligibility & Documentation - NRI Home Loan (2024)

FAQs

Is GPA mandatory for NRI home loan? ›

If you want to buy a property, get home loans or execute any legal transaction in your absence, you need a GPA. If you are an NRI and want to purchase a property in India, it becomes even more essential, as many laws do not apply to NRIs.

You can get financing ranging from 75% to 90% of the total property cost with NRI home financing plans. However, the final amount offered is at the sole discretion of the bank and will be based on your annual income, type of property you are planning to buy, and other such factors.

If you want to apply for a loan against property without income proof in India, ensure you have the following documents: Proof of identity: This may include a government-issued identification card such as a passport or driver's license. Proof of address: Utility bill or bank statement showing your current address.

A number closer to 900 is considered ideal for NRIs seeking Home Loans. Usually, a score of 750 or above has a higher chance of securing loan approvals.

However, most NRIs do not have the time to come to India to execute the Sale Deed/Agreement for Sale transaction. Therefore, a power of attorney for purchase of property by an NRI facilitates sale transactions legally. Moreover, NRIs would require a special power of attorney to execute a transaction.

You have an income shortfall

Your debt-to-income (DTI) ratio — the portion of your gross (pre-tax) monthly income spent on repaying regular obligations — signals to lenders whether you're in a position to take on an additional, major debt. If your DTI is too high, you may be rejected for a mortgage.

Lenders care more about your debt-to-income ratio than your income level. So someone with low income but no monthly debt could have an easier time getting approved than someone with high income and large monthly debt payments. Lenders also want to see a consistent income history.

*Passport, Driving licence, Voter's identity card, NREGA job card signed by an officer of the State Government, letter issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number. Note: NRI applying for the loan should have a close relative in India.

Can an OCI holder get a home loan in India? ›

Yes. An NRI/OCI salaried customer is eligible to apply for a Home Loan in India. For an NRI/OCI self-employed customer, feasibility of office visit overseas must be checked before applying for a mortgage loan.

As per RBI guidelines, no lender is permitted to offer 100% home financing. You need to make a down payment amounting to 10-15% of the property's purchase price. Typically, you can obtain up to 85 to 90% housing loan financing for your property….

The lender may require additional documents such as proof of identity, proof of residence, proof of employment and income, bank statements, credit report, letter of reference, and loan application. It is possible to take a home loan without a salary slip.

In general, you should expect to submit a paystub or two and a copy of last year's federal tax return if you're applying for a mortgage. We've listed below what documents you may need to show proof of income.

Many postgraduate courses in India and elsewhere are assessed using GPA. You also may be required to submit your undergraduate GPA when applying for Masters courses.

Your grades do affect your financial aid and federal student loans. If your cumulative GPA dips below a 2.0, you will no longer be considered to be in good academic standing. However, if your low grades are due to extenuating circ*mstances, you can try to appeal.

Conclusion. In essence, the Power of Attorney stands out as a vital legal instrument for NRIs wishing to buy or sell real estate in India. It ensures that their investments are handled with the care and legal diligence they deserve.

Speaking specifically in the context of property purchase, a GPA can be used to appoint “someone” to act as an “attorney” to complete the transaction on the individual's behalf. This can be useful in cases where the individual cannot be physically present at the time of the purchase.