How Home loans for NRI is differ from home loans for Resident Indian?
Basically, the home loans for NRI & resident Indians is similar. The key difference is in the eligibility criteria for both.
Following are the 5 major points differentiating the NRI home loans & resident Indian home loans:
The minimum qualification required for NRI loan seeker is graduation. However the resident Indian becomes eligible for home loan without graduation also depending upon some criteria.
The NRI loan seeker must have a minimum monthly income of $ 2,000 (this may vary across HFCs) as well as resident Indian must have a minimum monthly income of Rs.10,000 (this may vary across HFCs). And also in case of NRI home loans the EMI (Equated Monthly Installments) cheques have to be routed through NRI NRE/NRO account.
The third difference is in the tenure for home loan. Resident Indian can avail the home loan for a tenure between 20 years to 30 years depending upon the criteria. But home loan available to NRI is only for maximum 15 years as per the HFC.
In comparision of resident Indian, few additional documents are required to be submit by NRI like passport copy & work contract copy such as contract card or labour card. The most important document is the power of attorney (POA) required for NRI home loan.
Home loans to NRIs are expensive. There is a difference of 0.25% - 0.50% rate of interest between NRI home loans & resident Indian home loans.