Home Loan Eligibility

The eligibility criteria of NRIs differ from Resident Indians:

• Age:  The loan applicant needs to be 21 years of age or above
  
• Qualification:  NRI loan seeker has to be a graduate
  
• Income: Minimum monthly income of $ 2,000 (may vary by lenders) along with reasonable stability and continuity of employment or business
  
• Payment Option: EMI checks need to be paid through NRE/NRO account and it cannot be made through another source (e.g.Savings account in India)
  
• Other factors: The eligibility of the applicant is also determined by the number of dependents, assets, and liabilities
  
• Loan amount and type: An NRI borrower is eligible to get a home loan ranging from a minimum of Rs. 5 Lakh to a maximum of Rs. 1 Crore, based on credit and collateral characteristics. Furthermore, the maximum loan to value ratio (LTV) for NRI home loan is 85%.
  
• Joint application: Eligible for joint home loan application as long as the co-applicant hasseparate source of income
  
• Interest rate:  The rate of interest for home loans to NRIs is higher than those offered to Resident Indians for comparable products and the difference can be up to 0.25%-0.50%
  
• Tax consideration:  NRIs cannot claim tax benefits on home loans in India as they have to pay tax in the nation where they work and earn. Moreover, they need to file tax returns to become eligible for home loans. However, if they pay tax in India for income earned in India, they can claim tax rebate for the home loan