Home Loan can be taken by an individual or jointly by two or more people. The quantum of loan that an individual is eligible will entirely depend on the individual’s annual income, repayment capacity and past history, if any. To increase the quantum of loan, you can include your spouse’s income also and the repayment capacity will improve accordingly depending on the combined income.

There are two types of Home Loans, one with fixed rate of interest and another with floating rate of interest. In the case of a fixed rate, the Housing Loan amount borrowed will carry a fixed rate of interest for the entire tenure of the loan amount. This will be indicated to you at the time of borrowing from a HFC/Bank/Institution.

In the case of floating rate of interest, the HFC/Bank/Institution will indicate to you the rate of interest applicable at the time of entering into a loan agreement and the interest component will vary according to the market rate. The floating rate of interest can reduce or increase during the tenure of the loan and generally the floating rate of interest is slightly lower than the fixed rate of interest.

Generally, the interest for shorter periods will be less than what is charged for longer tenure. The Housing loan is given for a tenure of 5 years upto a maximum of 20 years. One should decide on the tenure based on one’s repayment capacity to get the best benefit on the interest rate.

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.
  
  
• 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.
  
  
• Government servants deputed abroad on assignments with foreign Governments or regional/international agencies like the World Bank, International Monetary Fund (IMF), World Health Organisation (WHO), Economic and Social Commission for Asia and the Pacific (ESCAP)
  
  
• 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 Non-Resident Indians.

The Reserve Bank of India (RBI) has issued certain guidelines for granting loans to Non-Resident Indians.

• The loan amount should not exceed 85% of the cost of the dwelling unit.
  
  
• Own contribution, which is the cost of dwelling unit finances less the loan amount, can be met from direct remittances from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and/or Non-Resident (Ordinary) [NR (O)] account in India.
  
  
• Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted to HFC/Bank/Institution from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and/or Non-Resident (Ordinary) [NR(O)] account in India.

Home Loans are available for purchase, construction, extending an existing home or renovation or for purchase of a plot of land from development authorities.

You can approach any of the leading Housing Finance Companies/Banks for a Home Loan and you are required to submit the following documents alongwith your application :

• Photocopy of the Employment Contract or Labour Contract and English translation duly countersigned by your employer.
  
  
• 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 Identity card/Labour card
  • Photocopy of valid resident visa stamped on the passport
  • Photocopy of monthly statement of local bank account for the last 4 months
  • Property related documents

You are required to register the Agreement of Sale.
In many states in India, the Agreement for 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.

You can apply for a loan and give a Power of Attorney to any of your family members or your contacts in India and the Power of Attorney holder can carry out the formalities on your behalf. The Power of Attorney holder should be a resident of the city where you wish to apply for a home loan.

The eligibility criteria for a loan amount is decided by the HFC/Bank based on your repayment capacity, subject to 85% of the cost of the property being the maximum loan amount. The repayment capacity takes into consideration factors such us income, age, qualification, number of dependents, spouse’s income, assets & liabilities, stability and continuity of occupation and history of savings.