Non Resident Indians (NRIs) can avail home loans for the purchase of flats, bungalows and villas in India. They need copies of valid passport, statements of non-resident external (NRE) or non-resident ordinary (NRO) accounts, salary certificate, last six months bank account statement/passbook, work experience certificate and a valid job contract or work permit. A person must be employed for at least two years. Businessmen and self-employed individuals need to show proof of income.
If an NRI is availing a home loan, he/she needs to attest the salary certificate from the embassy in case the salary is not credited to a bank. The person must also provide a local address proof and provide power of attorney (PoA) to someone in India. Details of permanent address in India are also necessary. A completed home loan application form is a must and the English translation of the contract must be duly attested by consulate, employer, embassy or the Indian bank’s foreign branch, in case the contract is in some other language.
Other documents that the NRI would need to purchase property in India are agreement for sale/sale deed, copy of approvals for proposed construction, purchase or extension/approved building plans and a no objection certificate (NOC). For purchase or construction of house, the documents he would require are non-encumbrance certificate on the property (for 13 years), original title deed, land tax receipt and possession certificate. In case, the NRI wants to authorise a third party to avail loan instalments, complete mortgage formalities and execute documents, a notarised power of attorney is a must.
The documents required can be divided under headings such as Personal Details Documents, Financial Details Documents for Salaried Individuals, Financial Details Documents for Self Employed Individuals and NRI Personal Guarantor documents. Different banks have different formats for the same. Here we have mentioned them in bullet points of your ease.
NRI Personal Guarantor Documents
- NRI Guarantor’s passport and visa copies
- Income documents of guarantor
- Current overseas address verification proof, such as, driving license, bank statement, utility bill, latest insurance premium receipt showcasing overseas address
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- Medical Tourism
Financial Details Documents for Self Employed Individuals
- Copy of incorporation of business
- Copy of income proof
- Middle East: Last 2 years audited/C.A certified P&L accounts
- US & Canada: Last 2 years CPA compiled/reviewed/audited P&L accounts
- Others: Last 2 years C.A. or equivalent certified/audited P&L accounts
- Copy of business profile and office address proof
- Copy of last six months’ bank statements in company’s name & individual’s name
- MOA & AOA of the company for private limited companies
- Partnership deed for partnership firm
Financial Details Documents for Salaried Individuals
- Copy of salary certificate mentioning the current salary earned, designation and date of joining or copy of current appointment letter
- Copy of previous appointment letters
- Last four months’ salary slips in case of variable salary, or last three months’ salary slip in case of fixed salary
- Six months bank statement clearly indicating credited salaries
Certain other details may also be asked for such as copy of PAN Card for the first applicant OR Form 60, Cheque/Draft in INR for fees with date in dd/mm/yyyy format, valid visa copies for all applicants and one passport size latest photograph of each applicant (includes co-applicant) with signature across.