Articles

NRI Home Loans - A Look At The Basic Eligibility Criteria

by Shashank Bhaskar Finance Adviser

Banks provide home loans that can help you buy your dream home. These loans should be repaid in monthly instalments over a specific tenure, by paying a fixed or floating interest rate on the principal amount loaned by the lender. But before you apply for the loan, you need to check if you are eligible for it. The eligibility criteria are determined based on your residency status – whether you are a resident Indian or a Non-Resident Indian (NRI). To be eligible for an NRI home loan, you need to fit into the below mentioned eligibility criteria.

  • Age

Lenders consider your age as an important parameter to assess your eligibility for the loan. The age criteria generally differ from lender to lender but you need to be at least 23-25 years old while applying for the home loan. Also, the maximum age for NRI home loan eligibility is 60 years or your retirement age (whichever comes first), at the time the loan matures.

  • Employment and work experience

Your chances of getting the NRI home loan passed are higher if you can show stable employment. Typically, lenders prefer to sanction loans of people who are well-employed, with a good company, for a minimum period of 3 years. They are however sceptical lending to people who have a habit of changing employers frequently or those who have gaps in employment. If you are a salaried NRI, you need to be able to show a minimum of 2 years of employment in the overseas country you are residing in, whereas self-employed borrowers should be able to show that they are engaged with the same business for a minimum period of 3 years.

  • Country and income

The country you live in and the income you earn is an important aspect that helps a lender in determining your NRI house loan eligibility. For instance, most lenders don’t provide home loans to people residing in countries such as Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Iran, China, Hong Kong and Macau. You may also not be eligible for a loan if you are residing in Cuba, North Korea, Sudan, Syria and Ukraine’s Crimea region.

If you are based in USA, Europe, Australia, New Zealand, Canada or South East Asia, you need to show a minimum annual income of USD $42,000 or its equivalent in other countries – whether you are a salaried professional, self-employed, salaried or a member of the merchant navy. Similarly, loan applicants from the Gulf region need to show an annual income of AED 48,000 to AED 84,000 O(based on employment type) to be eligible for the loan.

  • Minimum qualification and the overseas country you are residing in

In case of NRI housing loans, banks also emphasise on your educational qualification before sanctioning the loan. For instance, if you are applying for a loan, while you are currently living in USA, Europe, Australia, SEA, Canada, etc.; you need to be either a graduate or a diploma holder. In case you are living in any of the Gulf or Middle Eastern countries you need to be a graduate, a diploma holder, a post graduate or you need to hold a professional degree.

In conclusion, most lenders provide NRI house loan eligibility calculators on their website, through which you can check the exact loan amount you are eligible for. You need to enter basic fields like your net monthly income, additional income; outstanding monthly debts like credit card bills and other EMIs and the loan tenure and interest rate you can pay, to find out the maximum amount you can get as loan to purchase your dream home.


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About Shashank Bhaskar Innovator   Finance Adviser

14 connections, 1 recommendations, 82 honor points.
Joined APSense since, August 9th, 2018, From Mumbai, India.

Created on Nov 11th 2019 03:32. Viewed 343 times.

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