Home Loan for NRI

know more about home loans specially tailored for nri citizens
Home Loan for NRI

Learn more about our NRI Home Loan Scheme under TMB Loan Scheme for NRIs.

In our efforts to address the financial requirement of NRI's in constructing/owning their dream home in their place of domicile, we are introducing a new loan product “TMB - Home Loan for NRI”.

Purpose
  • To purchase ready built new house / flat or house / flat under construction
  • To purchase old house / flat
  • To construct house on his / her own land
  • To purchase land for construction of house within 2 years from the date of purchase of land.
  • To take-over of housing loan availed from other Banks / FIs
  • For renovation/extension / repair / furnishing.
  • Reimbursement of investments already made by the borrower provided the investment has taken place within preceding one year.
Eligibility
General:
a) Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs) holding foreign passport, singly or jointly or joint with spouse or close relatives of NRI applicant.
For this purpose Person of Indian Origin means a citizen of any country other than Bangladesh / Pakistan / Sri Lanka / Afghanistan / China / Iran / Nepal & Bhutan if:
i. He/She at any time held Indian passport (or)
ii. He/She or either of his parents or any of his grandparents was a citizen of India by virtue of the constitution of India of the Citizenship Act 1955 (or)
iii. the person is a spouse of an Indian citizen or a person referred to in sub clause (i) or (ii) as stated above.
In case of NRI holding foreign passport, intimation to RBI via form IPI - 7 within 90 days of purchase of property or final payment of Consideration - It is obligatory on the part of the applicant. However, branches have to obtain documentary evidence for the same.
Age:
NRI/PIO individuals/jointly with NRI/PIO or resident spouse aged between 21 and 50 years. In the case of Joint borrowers, if any one of the applicants is aged 50, they can avail loan under this scheme jointly. The last installment should not go beyond the age of 65 years.
Relaxations:
In the case of Professionals like Doctors, Engineers, Lawyers, Chartered Accountants and Business Men etc., the Sanctioning authority may relax the upper age limit upto 55 years.
Staying Abroad:
a) In case of salaried employee:
His/her stay abroad should have been for a minimum period of two years (or)
He/She has a valid job contract for a minimum period of two years abroad and has completed 6 months of employment (or)
He/She is working abroad on assignments with foreign Governments / government agencies or International / Regional Agencies like the UNO, IMF, World Bank etc. or Central Government, State Government or Public Sector Undertakings, officials deputed abroad on temporary assignments or posted to their offices (including Indian Diplomatic Missions) abroad.
b) In case of self-employed applicant or Business Men: His/her stay abroad should have been for a minimum period of 3 years.
Maximum No. of Housing Loan Entitlements
Loan upto 2nd housing unit is allowed.
Quantum of Loan
For Metropolitian Centres: Up to Rs. 500 Lakhs
For Non-Metro Centres: Up to Rs. 300 Lakhs
For Renovation: Up to Rs. 25 Lakhs
For Take Over: Loan amount for take over should not exceed the actual amount outstanding with the other Bank/FIs.
For Top-Up Loans: Maximum of 15% of the original Loan amount or Rs. 7.5 Lakhs whichever is Lower. Such top up loans shall be allowed only after 3 years from the date of commencement of repayment of the original loan.
Conditions for Top Up Loans
a. There should not be arrears of any EMI / Principal / interest / Other claims in the loan account. i.e. Conduct of the account should be satisfactory throughout the period
b. Original LTV should be continued to be maintained, and the total loan for the purpose of LTV shall include the top up loan and the outstanding balance in the original loan.
c. Asset should not be revalued for the purpose of arriving at eligible LTV.
d. Borrower should have adequate headroom in salary / business income as per eligibility norms, to meet the total EMI commitments of the loans.
e. Approved Plan should be available, where Top-up loans are allowed for additional construction.
Security
Equitable Mortgage of the Land / House / Flat purchased / constructed / acquired under the Loan and the improvements / additions thereto.
Margin
New Flats - 25%, Purchase of Plot and construction of house thereon - 25%, Construction of house on existing plots - 10% on the Cost of Construction
Renovation / Purchase of Old House/Old Flat - If the age of the house is below 5 years - 25%, If the age of the house is above 5 years - 40%, Old Flat irrespective of age - 30%
Note:
1. In case of outright purchase, the loan amount should be sanctioned based on purchase cost, market value or Registration Value whichever is lower.
2. In the case of house construction on the pre-owned plot, the loan may be sanctioned with a margin of 10%, provided the total realizable value of the property after construction (i.e. Land and Building) is more than 133.34% of Loan Amount.
3. Margin should be brought through banking channel by direct remittance or from NRE/NRO/FCNR/NRNR a/c of applicant.
Guarantee
Guarantor if any should be Resident Indian and blood relative to applicant as per our Bank's lending policy.
Guarantee may be waived in appropriate cases by the concerned sanctioning authority based on repaying capacity of the applicant and genuineness of the case.
Repayment Period & Mode
Repayment Minimum - 5 years and Maximum - 30 years or upto the age of 65 years of borrower whichever is early.
Within a maximum of 30 Years (excluding Holiday period) in equated monthly Installments, excepting specific cases where restrictions are specified under "Eligibility". Interest during the construction / moratorium period / holiday period may be debited and added to the principal amount, and be recovered in EMIs
Moratorium/Repayment holiday Normally, the moratorium/repayment holiday is being allowed considering the construction time of residential buildings and the schedule of implementation in case of housing project. In case, the moratorium/repayment holiday period is allowed beyond 12 months, it needs approval from next higher level authority.
Repayment mode
Under the RBI regulations, the repayment of the housing loan by NRIs can only be made by remittances from abroad through normal banking channels or through NRE/NRO account or out of rental income derived from the impugned property. The amount must be payable in Indian Rupees only.
Once the NRI borrower returns to India for permanent settlement as declared by him/her, the repayment may be permitted from local sources also.
Rate of Interest
  • Loans Upto Rs. 75 Lakhs:
  • Upto 15 Years Loan - BR + 0.00% (10.30% p.a.).
  • Loans from 15 Years to 30 Years - BR + 0.25% (10.55% p.a.).
  • Above Rs. 75 Lakhs
  • Upto 15 Years Loan - BR + 0.25% (10.55% p.a.).
  • Loans from 15 Years to 30 Years - BR + 0.50% (10.80% p.a.).
  • In case of loans for purchase of land and construction
  • a. If the construction is delayed and the delay in obtaining the approved plan is reasonable (not exceeding 24 months) from the date of disbursal of loan for plot purchase.
  • b. If the construction is started within 12 months, the branch has to charge rate of interest as referred above
  • c. If the construction is started after 12 month but not exceeding 24 months, BR + 4.75% (15.05% p.a.) has to be charged for the delayed period beyond 12 months.
  • d. If the construction taken place after 24 months the rate of interest may be charged @ BR + 4.75% (15.05% p.a.) from (initial) original disbursement till disbursals are made for construction.
  • e. If the borrower does not commence construction and closes the loan availed without any construction is being carried out, the maximum ROI @ BR + 9.00% (19.30% p.a.) should be charged from the date of first disbursement.
  • Current Base Rate for Lending (BR) is 10.30% p.a.
Penal Interest
Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.
Processing Charges
0.25% of the limit sanctioned without any maximum cap Plus taxes as applicable. No concession request will be entertained. In respect of proposals sourced under tie-up with developers or during Credit Sourcing Camps, 50% concession in processing charges is permissible.
Documentation Charges
Nil.
Prepayment Charges
Nil.
Documentation
Common Documents:
1. Loan application in the prescribed format.
2. Assets and Liabilities statement of the applicant.
3. General power of attorney notarized and attested by Indian embassy/ consulate (as per annexure)
4. The POA holder should have blood relation with the Borrower and it is to be supported by relevant documents.
5. A proof of residence (lease deed copy/ driving license / utility bills etc.)
6. Copy of the passport as proof of age with visa stamp and a copy of a valid visa.
7. Copy of the Title Deeds/ Agreement to Sale if applicable
8. Approved Plan from the Appropriate Authorities.
9. Civil Engineer's Estimation
In addition to the above, the following documents are also to be obtained:
For salaried person
1. A brief write up on the company / institution where the applicant is employed.
2. Copy of the employment contract / offer letter (and an English translation of the same in case the offer letter or the employment contract is not in English).
3. Latest salary certificate (in English) or pay slips from employer specifying name, date of joining, designation & salary details, etc. Preferably it is certified by the embassy.
4. Copy of NRE A/c Statement for 2 years with our Bank or any bank where salary is credited.
5. Copy of a valid work permit / appointment letter & contract details [in English and attested by Indian Embassy] (probability of continuation of service for the tenure of loan should be assessed)
6. Copy of Identity Card issued by the Current Employer or employment verification certificate.
7. Copy of Continuous Discharge Certificate (CDC) for applicants employed in the merchant navy.
For businessmen/ professionals and others
1. Balance Sheet and Profit & Loss account for 2 years.
2. Copy of Bank account statement for 2 years (Any Bank).

Loan EMI Calculator:

Loan EMI Calculator

Base Lending Rate 10.30% p.a. updated Dec 01, 2016.

For a Home Loan for NRI of Rs. 10,00,000 repayable in 300 equal monthly installments at an interest rate of 10.30% p.a., the equated monthly installment (EMI) payment shall be around Rs. 9,299.34. Click for Monthly Amortization Chart.


All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.