Globalisation has brought the world closer and businesses wider. People are moving across countries for studies, jobs and businesses in search of better opportunities and higher income. However, often NRIs wish to return to their homes in India every once in a while. This becomes difficult when they do not have a property.
If you are an NRI and have ever planned to have a house back in India, home loans can help you. Sure, you can pay for a house through your savings. But it’s not a hidden fact anymore that buying a house property can exhaust all your savings. Instead, through a home loan, you can buy the house of your dreams easily without liquidating your savings. The application process for home loans is simple with minimum documentation. Moreover, you need not fly back to India to service the loan as your representative can do that on your behalf.
How Much Loan Amount Can NRIs Get?
Once you have decided to avail a home loan, it is time to gather the necessary details such as the eligibility criteria, documents required and tenure. However, apart from this, you might also want to know the maximum loan amount available for NRIs.
The amount of loan you can avail would depend on your educational qualification and monthly income. Usually, lenders approve a loan amount equal to 75-90% of the property value, provided your salary meets the eligibility criteria. Lenders consider your gross monthly income to determine your loan amount. Typically, banks approve a home loan amount that is 36-40 times of your gross monthly income.
Some banks also consider your net monthly income (NMI) for the computation. While taking into account your NMI, the ratio of EMI to NMI is used to determine the maximum loan amount.
Factors That Determine Your Loan Amount
The loan amount you can avail depends on various factors. For example, you should meet the eligibility criteria, which includes a minimum threshold of income. Usually, lenders consider all the eligibility criteria to determine the loan amount. If you have high eligibility, you can get a high loan amount.
The eligibility criteria of home loan for NRI are –
- You should be a graduate.
- Your age should be between 18 to 60 years
- You should have worked in your current organisation for at least 2-3 years.
Apart from this, an Indian resident must be a co-applicant, co-borrower or co-owner of the property. The lender also asks for a power of attorney who can service the loan on your behalf.
It is important to check your home loan eligibility before you apply for the loan. High eligibility can help you avail a high-value loan at a low rate of interest. You can use a home loan eligibility calculator to check your eligibility online and then apply for an NRI home loan.