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AVENUES has tied up with the leading financial institutions in India to offer home loan services to NRIs. This page offers the list of documents required for availing of home loans and FAQs on home loans. Also, you can apply online for home loans.

Employment/residency related documents:
Photocopies of:

Employment contract (English copy if the contract is not in English, attested by the Embassy/Employer).
Latest work permit.
Details of previous employment.
Identity card issued by current employer.
Continuous discharge certificate (CDC) – (for applicants employed in the merchant navy).
Latest salary slip/certificate.
Overseas Bank Account Statement (four months).
Pages with visa stamp on the passport.
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Property Related Documents:

Allotment letter from the co-operative society / association of apartment owners.
Receipts for payments made for purchase of the dwelling unit.
Agreement for sale / sale deed /detailed cost estimate from Architect / Engineer for property to be purchased / constructed /extended / improved.
Copy of approved drawings of proposed construction/purchase/extension.

Additional documents be submitted by Person of Indian Origin

Photocopy of PIO card.

If the PIO card is not available, photocopies of any of the following documents:

The current passport, with birthplace as ‘INDIA’.
The Indian passport, if held by the individual earlier.
Parents/grandparents Indian passport/birth certificate/marriage certificate substantiating the individuals claim as a person of Indian origin.

Home Loan FAQs (NRIs)

How do I repay the loan?

You repay the loan in Equated Monthly Installments (EMIs), which includes principal and interest. EMI repayment starts from the month following the month in which you take full disbursement. EMI is payable every month, by the end of the month from the date of each disbursement up to the date of commencement of EMI. Pre-EMI is calculated at the same rate at which EMI is calculated. EMI payments are to be made through post dated cheques from your Non Resident (External) Account/Non Resident (Ordinary)/Non Resident (Special) Rupee Account (NRSR) in India.

Can I repay my loan ahead of schedule? Yes. You can repay the loan ahead of schedule, by remittances through abroad through normal banking channels, your Non Resident (Ordinary) / Non Resident (Special) Rupee Account (NRSR) in India.

Does the Agreement For Sale have to be registered? In many states in India, the Agreement of Sale between the builder and purchaser is required by law to be registered. You are advised in your own interest to lodge the agreement for registration within four months of the date of the Agreement at the office of the Sub Registrar appointed by the State Government, under the Indian Registration Act, 1908.

Investment in Immovable Property In India

Section 3.1 of FERA generally governs the matters relating to immovable properties and the work relating to permissions for purchase etc. of immovable properties is centralised in the Foreign Investment Division at Central Office of Reserve Bank of India at Mumbai.

INVESTMENT IN IMMOVABLE PROPERTY BY INDIVIDUALS

Foreign Citizen				Indian Citize
Indian Origi		Non-Indian Origi		Resident	Non-Residen
Investment made from local fund	Investment made from foreign fund	Investment made from local fund	Investment made from foreign fund	No Approval is required under FERA	Invest ment made from local funds	Investment made from foreign funds
Prior RBI permission require	Prior permission of RBI not require	Permission generally not given by RB	Prior permission from RBI require	-	No approval necessary under FERA	Declaration in form IPI-7 necessary if repatriation facility require
	Declaration in form IPI-	-	Application in form IPI-	-	-	-
No repatriation of sale proceed	repatriation of original Investment allowed after 3 years on applying to RBI in form IPI-	-	No repatria- tion of sale proceeds	-	-	repatriation of original Investment allowed onapplying to RBI in form IPI8

Foreign citizens of Indian origin

For foreign citizens of Indian origin,different procedu reshave been laid down depending on :

Whether they invest their money in the form of Foreign Currency remitted from abroad through normal banking channels or from funds withdrawn from the NRE/FCNR accounts, or
From local funds in Rupees.

Frequently Asked Questions for Non-Resident Indians

Q.	Who is an NRI?
A.	Under the Foreign Exchange Regulation Act of 1973, Non-Resident Indians are: Indian citizens who stay abroad for employment or for carrying on business or vocation outside India or for any other purpose in circumstances indicating an indefinite period of stay abroad.
OR	Government servants who are posted abroad on duty with the Indian missions and similar other agencies set up abroad by the Government of India where the officials draw their salaries out of Government resources.
OR	Government servants deputed abroad on assignments with foreign Governments or regional/international agencies like the World Bank, International Monetary Fund (IMF), World Health Organization (WHO), Economic and Social Commission for Asia and the Pacific (ESCAP),
OR	Officials of the State Government and Public Sector Undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad.
	Guidelines Issued by the Reserve Bank of India for grant of Housing Loans to NRIs. The Reserve Bank of India (RBI) has issued certain guidelines for granting loans to Non-Resident Indians. The guidelines are: The loan amount shall not exceed 85% of the cost of the dwelling unit. Own contribution, which is the cost of dwelling unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India. Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.
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Q.	For what purposes are loans available to NRIs?
A.	NRIs can avail loan for buying or constructing a new home, extending or improving an existing home or even to buy a plot.
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Q.	What is meant by "Own Contribution"? How can this "Own Contribution be paid"?
A.	Own Contribution is the cost of the dwelling unit financed less the loan amount. The own contribution should be met from direct remittances from abroad through normal banking channels or from the Non-Resident (External) Account/Non-Resident (Ordinary) or the Non-Resident Special Rupee account in India.
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Q.	What are the common documents to be submitted along with the application?
A.	The following documents are required along with the application form:
	Photocopy of the labour contract duly countersigned by your employer (translated to English for non-English documents). Latest salary certificate (in English) specifying the following: Name (as it appears in the passport). Date of joining. Passport Number. Designation. Perquisites and salary. Photocopy of labour card/identity card. Photocopy of valid resident visa stamped on the passport. Photocopy of monthly statement of local bank account. Property related documents.
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Q.	What security will I have to provide?
A.	Typically the security for the loan is first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary.
	In addition interim security may be required, if the property is under construction. Collateral or interim security could be in the form of assignment of life insurance policies, surrender value of which is at least equal to the loan amount, pledge of shares and such other investments.
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Q.	Can I give a Power of Attorney in favour of a person of my choice in India to complete loan formalities on my behalf?
A.	Yes. Normally it is desirable to appoint a Power of Attorney in India to represent you in dealings in India. The Power of Attorney should be executed as per drafts provided by the housing finance company. The Power of Attorney can be given to any person of your choice in India.
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Q.	How do I repay the loan?
A.	You repay the loan in Equated Monthly Installments (EMIs), which includes principal and interest. EMI repayment starts from the month following the month in which you take full disbursement. EMI is payable every month, by the end of the month from the date of each disbursement up to the date of commencement of EMI. Pre-EMI is calculated at the same rate at which EMI is calculated. EMI payments are to be made through post dated cheques from your Non Resident (External) Account/Non Resident (Ordinary)/Non Resident (Special) Rupee Account (NRSR) in India.
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Q.	Can I repay my loan ahead of schedule?
A.	Yes. You can repay the loan ahead of schedule, by remittances through abroad through normal banking channels, your Non Resident (Ordinary) / Non Resident (Special) Rupee Account (NRSR) in India.
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Q.	Does the Agreement For Sale have to be registered?
A.	In many states in India, the Agreement of Sale between the builder and purchaser is required by law to be registered. You are advised in your own interest to lodge the agreement for registration within four months of the date of the Agreement at the office of the Sub Registrar appointed by the State Government, under the Indian Registration Act, 1908.
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Q.	Which documents are to be verified before purchase of a Flat ?
A.	Before you purchase a flat, you have to have a title and document search conducted by a competent advocate. You cannot do it yourself. You have to use the services of a competent advocate. It is a professional job to be done with professional assistance.
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Q.	What is the difference between built up area, super built up area, and carpet area?
A.	Carpet Area: This is the area of the apartment/building which does not include the area of the walls. Built up Area: This includes the area of the walls also Super Built up Area: This includes the built up area alongwith the area under common spaces such as the lobby, lifts, stairs, etc. This term is therefore only applicable in the case of multi-dwelling units.
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Q.	What are all the important documents one should check before buying any property ?
A.	If you want to purchase a property, you have to look at the approved layout plan, approved building plan, ownership documents, carryout search, etc. Contact an advocate before you purchase a property so that he can advise you.
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Q.	Who is liable to pay Stamp Duty-the buyer or the seller?
A.	The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary. Section 30, of Bombay Stamp Act, 1958 states the liability for payment of stamp duty.
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Q.	In whose name are the stamps required to be purchased ?
A.	The stamps are required to be purchased in the name of any one of the executors to the Instrument.
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Q.	What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement ?
A.	Market value means the price at which a property could be bought in the open market on the date of execution of such instrument. The Stamp Duty is payable on the agreement value of the property or the market value which ever is higher.
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Q.	Which are the instruments that attract the payment of Stamp Duty ?
A.	The instruments like Agreement to Sell, Conveyance Deed, Exchange of property, Gift Deed, Partition Deed, Power of Attorney, settlement and Deed and Transfer of lease attract Stamp Duty on market value of the property.
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Q.	Who is the appropriate authority for knowing the market value of the property ?
A.	The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property.
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