Applying for Home Loan or Balance Transfer Home Loan NRI / OCI/ PIO
Most of the times, its a dream for NRI to buy a property in his/her home town or clear existing home loan before they return India. We come across NRI/OCI/PIO buying property in India very frequently. There are a lot of doubts which seem to be repeated by most clients.
This blog would give an insight of the process so that one can avoid errors and rework.
Process for Non Residents Indian / Person of Indian origin PIO or Overseas Citizen of India OCI for Home loan application.
HOW TO APPLY FOR NRI BALANCE TRANSFER HOME LOAN ?
First Step is to Decide the Power of Attorney (POA) Holder
The first step for any NRI/OCI/PIO is to decide who would be the POA holder. He/she has to be a blood relation residing in India preferably in a metro like Bangalore,Hyderabad, Mumbai, Mysore, or Pune.
Most of the banks ask for a Co-applicant. Your blood relative in India that is your parents/spouse can be a co applicant. You also need to convey the property ownership details .
In case you are buying in joint name i.e either your spouse / parents, he /she would have to be on the loan as a co applicant.
Please note the POA holder is the person who would be called in case you delay/ default on our loan.
Power of Attorney(POA)
The most crucial document you need to execute is the POA in the format of Bank that you are applying for the home loan. Each Bank has its own format for the Power of Attorney.
Do not execute a generic general power of attorney as most banks refuse to accept the same for the application. Once you have the power of attorney format of the bank that you wish to avail home loan from since you would be executing the POA outside India, you need to visit the Indian Embassy and complete the process.
In case your co applicant is an NRI you would need to execute POA for him/her also. Both POAs can be given to the same relative in India.
Please get the Power of Attorney checked from your banker before notarizing it from the embassy. Any errors can be rectified.
Kindly note that the POA attracts a fee in the embassy as well as here in India. In India you need to affix a Rs 500 stamp paper and get the documents notarized.
Kindly note in case there are any errors / gaps in the POA you waste a lot of time, energy and money because the entire exercise has to be repeated.
For Property Registration
The power of attorney you have executed for the bank can also be used for the registration of the property document. However you need to get the same checked from the developer from whom you are buying property.
All the income and personal documents as per the list have to be self attested by you (signed by you/POA holder) when you despatch the same to India.
Kindly also provide your overseas address proof which can be your employer’s letter in original.
You need to provide following documents attested by Indian Embassy : PAN CARD COPY, PASSPORT COPY and Overseas Residence proof
WHAT TO SUBMIT FOR NRI BALANCE TRANSFER HOME LOAN ?
List of Documents for NRI
- Photo of Applicant and co-applicant
- Latest 4 months salary slip
- Appointment letter
- Increment letter with salary breakup
- Address proof
- Previous work experience letter
- Pan card copy & Passport copy
- Processing fees cheque from NRE account
- Co-applicant photo ID proof and sign Proof ( Pan Card ,Passport, Driving License copy)
- 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.
- Bank Account Statement For Salary & Saving a/c (six months).NRI,NRO A/C
- Pages with visa stamp on the passport.
- Power of attorney For Bank Format
- Pan Card Copy, Address proof, Photo for POA holder
- Detailed credit report from Equifax / Experian
A credit report is a mandatory document for NRI/OCI/PIO US/UK/European countries, Australia, New Zealand and South Africa.
The credit report is not required for professionals working in the Middle East
Please download a detailed credit report which would clearly state your credit score. Most of the times you would have to pay fee to download the credit report. the credit reports available free of cost do not provide detailed credit history and might not provide the score.
WHERE TO PROCESS FOR NRI BALANCE TRANSFER HOME LOAN ?
We would recommend to process with Bank or institution which is providing Online Access to monitor, manage and allow part payments online. Most of the banks provide online access. So make sure you collect all the required online access details at the end of Loan process. We, at Loanyantra as part of process checklist, make sure our customers get the required online access to the loan process.
WHOM TO APPROACH FOR NRI BALANCE TRANSFER HOME LOAN?
NRI/OCI/PIO Loans if not professionally handled it might be very cumbersome job. It is always good to be ready with all the documents before starting the Home Loan process. In case of additional documents required then it would take extra money to send , extra time it would take to receive and extra efforts by the Power of Attorney(POA) to submit the documents. We would recommend, use services from a prompt loan professional to process it smoothly. Loanyantra.com, India’s first online loan management company, a reliable and perfect source if you are looking for a smooth process.
In a hawk’s eye, Loanyantra provides professional service at free of cost. As our process protocol, we first send entire checklist and have a professional call before we start the process. Once the process starts you get online access on Loanyantra portal which would update the status of the Loan process and it provides a chat facility between you, Loanyantra executive appointed for your process and the Banker. We make over all experience a cake walk.