NRI Section

Definition:

NRI – Non-Resident Indian is a Citizen of India resident outside India. RBI defines NRI as “An Indian citizen who holds a valid Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI.”

PIO / OCI – Person of Indian origin / Overseas Citizen of India is an individual (not being a citizen of Pakistan or Bangladesh or Sir Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who –

  • at any time, held an Indian Passport or
  • who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955

Loan Purposes:

Home Loans are provided to NRIs for:

  • Purchase of a new / old house / flat
  • Purchase of a residential plot of land and / or Construction of a house thereon
  • Construction of a house on plot of land already owned
  • Extend /Renovate/Repair of a house or flat already owned by self
  • Take-over of existing Housing Loan

Features / Loan Eligibility norms:

  1. Profile Category –
    • Salaried Individuals: Any individual who is in service can be financed. Minimum work experience of 6 months, overseas is required.
    • Self Employed Professionals (SEP): Doctors, Engineers, Scientists & Chartered Accountants are classified as Professionals only. Minimum professional work experience of 2 years, overseas is required.
    • Self-employed Non-professionals (Businessman): Only NRI Businessmen based in UAE are covered under this scheme. Minimum business continuity of 3 years and Minimum Annual income of 100,000 AED in the UAE is required.
  2. Maximum loan
    • 85% of the cost of the property for Home Loans upto 20 lacs
    • 80% of the cost of the property for Home Loans above 20 lacs
  3. Maximum Term – Upto 15 years  (In case of plot loans – 10 Years)
  4. Minimum Income – For Salaried & SEP individual based in UAE it is AED 5,000 per month. For USA and other countries it is USD 3,000/- per month or equivalent
  5. Age – The applicant in all the cases should be above 24 years of age at the time of loan commencement and up to the age of 60 Years (65 years in case of Self-employed), whichever is earlier at the time of loan maturity.
  6. Credit History – Axis Bank also checks your credit history from CIBIL (Credit Information Bureau India Ltd.) and from an authorised Credit Information Bureau in your country.
  7. Applicant and Co-Applicant to the loan – Home Loans can be applied for either individually or jointly. Proposed owners of the property will have to be co-applicants. However, the co-applicants need not be co-owners

Documentation:

Personal Documents –

  • 1 passport size latest photograph of each applicant
  • Valid passport copies for all the applicants showing India Entry / exit stamp, if applicable
  • PAN card copy for all the applicants, if available
  • PIO / OCI card, if applicable
  • Valid work VISA copies for all the applicants
  • Foreign location residential address proof
  • Processing Fee cheque from your NRE / NRO Bank A/c in India

Income Documents: for salaried individuals –

  • Copy of current appointment letter OR Copy of salary certificate clearly mentioning the date of joining, current salary earned and designation held in the company
  • Copy of previous appointment letters showing last 3 years job continuity
  • Last 3 months salary slip for Fixed salary and last 6 months for Variable salary
  • Last 6 months bank statements clearly mentioning salary credits in the account
  • Last 6 months bank statements of NRE / NRO A/c in India

Income Documents: for Self-employed individuals –

  • Proof of incorporation of business viz. Partnership Deed, MOA of company
  • Business Profile and Office address proof
  • Last 3 years Income tax returns filed in the country of residence
  • Last 3 years Audited financials – Profit & Loss A/c and Balance Sheet
  • Last 6 months bank statements of Current A/c and Savings A/c
  • Last 6 months bank statements of NRE / NRO A/c in India

Documents of Power of Attorney (POA) appointed in India

Each NRI applicant needs to compulsorily appoint a POA in India. For the format refer to this Document. The POA needs to submit self-attested copies of following:

  • One passport sized photo
  • Photo ID and signature proof
  • Residence Address proof

Residence Verification is to be conducted at the POA holder’s residence & the applicant’s residence in India (if applicant or family members are present in India)

Place of Execution of POA:

If NRI applicant is present in India at the time of application:

  • The POA format can be printed on Rs.100 stamp paper, both applicant and POA holder needs to sign on each page and the same can be duly notarized
  • Application format needs to be personally signed by all NRI applicants
  • All documentation mentioned above needs to be self-attested by respective NRI applicant

If NRI applicant is not present in India at the time of application:

  • The POA format needs to be printed on plain sheets and NRI applicant needs to sign on each page. The same needs to be attested by the local Indian Consulate / Embassy in the country of residence
  • Passport copy needs to be attested by the Indian Consulate/Notary Public/Bank Manager at the place of residence of the NRI applicant
  • The NRI applicant can send the attested POA format, passport copy and all other documents mentioned above self-attested to India for home loan processing

Interest Rates and other Charges:

NRIs are charged at same rates of Interest as Resident Individuals. Check the Interest Rates Section for further details…

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