An Overview of NRI Home Loans

Are you a Non-Resident Indian (NRI) looking to acquire a property in India? Is your decision to buy a home being delayed because you do not have the entire amount required to make the purchase? If yes, you may still purchase your dream home using a loan offered by banks and Non-Banking Financial Companies (NBFCs).


To determine your financial capability to repay the loan on time, the lenders consider certain factors like your income, credit history, age, and much more before approving the loan.

Here are the three steps involved in the home loan application and sanction process

  1. Document submission

At the time of loan application, you will need to submit certain documents. The documentation varies among lenders and checking this with the lender before applying for a loan is recommended. Some basic documents required include income proof, address proof, valid visa, passport copy, and employment contract. It is advisable that you submit all the documents at the same time to ensure the procedure is completed without any delays.

  1. Verification

When you submit the required documents and the loan application form; the financial institution logs in your file in its system. The legal and credit teams verify the information submitted by you to ensure its validity and accuracy. The below-mentioned details are generally verified.

  • Credit information verification

The lenders verify your credit history to determine your repayment capability. Furthermore, they analyze your assets and liabilities as well as consider existing Equated Monthly Installments (EMIs), if any. Financial institutions also verify the employment proof provided by you when you apply for a home loan.

  • Property verification

The loan amount is secured against the property. Therefore, lenders require the home to have a clear title with no encumbrances. Furthermore, they analyze the value of the property with the market rates to ensure you do not pay a higher amount for the purchase. You may, therefore, have to provide several property-related documents to the lenders for availing of the loan.

  1. Sanction letter

On the successful completion of the verification, the lender provides you with a sanction letter. It provides details, such as the rate of interest, loan duration, sanctioned amount, repayment schedule and EMI, as well as other terms and conditions. It is important you read the letter thoroughly before your acceptance.

  1. Acceptance letter

Once you understand all the terms and conditions mentioned in the sanction letter, you may either accept or reject the same. If the home loan conditions are acceptable, you must submit a signed copy of the sanction letter to the lender.

You may appoint a relative as their authorized Power of Attorney (POA) in case you are not able to be present in India. The POA may complete all the formalities related to your housing loan application.