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Housing Loan for NRIs

ELIGIBILITY:

Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs) holding foreign passport, singly or jointly. For this purpose Person of IndianOrigin means a citizen of any country other than Bangladesh / Pakistan / Sri Lanka /Afganistan / China / Iran/ Nepal & Bhutan if –

a. he at any time held Indian passport or
b. he or either of his parents or any of his grand parents was a citizen of India by virtue of the constitution of India of the Citizenship Act 1955 or
c. the person is a spouse of an Indian citizen or a person referred to in sub clause (a) or(b) as stated above.

PURPOSE:

1. Purchase of ready built house/flat or house/flat under construction
2. Purchase of old house/flat not old over 35 years.
3. Construction of House on own land.
4. Renovation/extension/repair/ furnishing of owner-occupied or
tenant-occupied house or flat.
5. Supplementary finance to complete the project financed by the employer.
6. Take-over of housing loan availed from other Banks/HFCs.
7. Purchase of land for construction of house within 2 yrs
8. Purchase/ take-on of long-term lease (min. 10 yrs) of house/flat from
Govt. Bodies/ PSUs (unexpired lease period should exceed at least 5
years than repayment period of loan)

Note:
a. Loan upto 2nd housing unit is allowed
b. No loan for 3rd housing unit
c. Property should be for own residential use or residential cum
commercial use. When for purely commercial purpose, Housing loan
will not be allowed.

QUANTUM OF LOAN:

The quantum of loan is arrived at by considering the lowest amount of:
Loan requested
Cost of the property
75% of the cost of the property (Cost includes cost of the plot/house, stamp duty, registration fees, transfer fee etc.) and cost for repairs/improvement/extension
Repayment capacity of the borrower
Based on the maximum amount of EMI a borrower can pay after considering his income level, other obligations and amount for sustenance

SECURITY:

Equitable mortgage of the proposed property
Interim security required in case of under-construction property

MARGIN:

Minimum 25% of the Total project cost in all cases
(i) Stamp Duty and Registration cost, wherever applicable, must be included in the total project cost
(ii) Project cost is to be ascertained on cost price or market value of property whichever is lower.
(iii) Money already spent by applicant(s) will be considered as part of margin.
(iv) Borrower should contribute margin amount in full before disbursement of loan

REPAYMENT:

Maximum Repayment period is restricted to 25 years subject to the following :
Repayment period is extended from 15 to 25 yrs for NRI Housing Loan as per following terms :

Borrower’s Age Repayment period to be allowed

Up to 35 years : - 25 years;
Above 35 and below 45 Yrs:- 20 years;
45 Yrs and above :- 15 years;

However, loan should be liquidated by the age of 60 years or the age of retirement
whichever is earlier .

PREPAYMENT PENALTY:

Nil, However, in case of takeover of loan by Banks / HFCs, 2% pre-payment charges is to be levied on outstanding balance.

Disclaimer: This is a brief snapshot of the UNITED HOUSING LOAN scheme. Case specific rules may differ from ones mentioned here.

DOCUMENTS REQUIRED:

1. Copy of the employment contract / offer letter (and an English translation of the same in
case the offer letter or the employment contract is not in English). These documents
must be duly attested by the consulate/ embassy or the bank’s branch in that country.
2. A brief write up on the company / institution where the applicant is employed.
3. A proof of residence (lease deed copy/ driving license / utility bills etc.)
4. A complete profile or Curriculum Vitae (CV) of the applicant borrower (i.e. Bio-data
covering educational qualifications, age, job experience, nature of profession/ business
etc. with necessary proof.
5. Latest salary certificate (in English) or pay slips from employer specifying name, date of
joining, designation & salary details, etc. duly attested by embassy officials.
6. Copy of a notarized valid work permit / appointment letter & contract details [in English
and attested by Indian Embassy] (probability of continuation of service for the tenure
of loan should be assessed)
7. Copy of Identity Card issued by the Current Employer or employment verification
certificate.
8. Copy of the passport as proof of age with visa stamp and a copy of a valid visa notarized
by the notary public.
9. Overseas Bank Account Statement for the last 6-12 months of NRE/NRO accounts.
10. Bank statements for last six months of salary account whether the account is overseas or
in India.
11. Copy of the latest W2 form (for the people residing in USA) and income tax returns for
the last 2 years.
12. A notarized Assets and Liabilities statement of the applicant.
13. General power of attorney notarized and attested by Indian embassy/ consulate (as per
bank’s format)
14. Undertaking from the employer for remittance of monthly instalment, wherever
feasible.
15. The POA holder should have blood relation with the Borrower and it is to be supported
by relevant documents.
16. Copy of Continuous Discharge Certificate (CDC) for applicants employed in the
merchant navy.

Other Conditions:

1. Applicant should maintain NRE/NRO/FCNR/NRNR a/c with the Bank and repayment of
loan will be made by direct remittance or through such a/cs
2. NRI should appoint & empower one Power of Attorney ( POA) holder who will deal
activities with bank in India on behalf of NRI. POA holder should be resident Indian and
have relation with NRI.
3. POA (Format is given in Annexure-I) must be notarized if executed in India.
4. If POA executed outside in India, it must be attested by Indian Embassy and stamped &
registered in India within three months of execution.
5. POA holder will preferably join as co-borrower
6. Guarantor if any should be Resident Indian and related to applicant.
7. Margin should be paid through banking channel by direct remittance or from
NRE/NRO/FCNR/NRNR a/c of applicant.
8. All other documents on property & personal documents as applicable for normal housing
loan should be obtained.
10. All other Bank formalities on housing loan will be completed
11. If the property rented, realizable rent amount should be credited to housing loan a/c of
borrower with the branch.
12. For Persons of Indian Orgin (PIOs): a) Current passport indicating birth place in India
b) Indian passport, if held earlier c) Parents/ Grand Parents passport with details therein
substantiating status of being a PIO.

Disclaimer: This is a brief snapshot of the UNITED HOUSING LOAN scheme. Case specific rules/documents may differ from ones mentioned here