India’s largest bank, the State Bank of India (SBI), has announced the launch of a scheme providing home loans to Non-resident Indians (NRIs) and Persons of Indian Origin (PIO). The maximum home loan repayment tenure has been fixed at 30 years.
NRIs and PIOs are required to fulfil certain criteria and submit a set of prescribed documents to avail of the option. SBI charges the interest rate on the principal home loan amount on daily reducing balance, a company release stated.
As per the prescribed SBI guidelines, borrowers between the ages of 18 and 60 years are eligible for the loan, also available as an overdraft. SBI charges a processing fee at a rate of 0.35 per cent of the home loan amount excluding service taxes between INR 2,000 and INR 10,000.
The document list required by the bank includes an employer identity card, attested copy of valid Passport and visa, address proof mentioning the current overseas address, copy of continuous discharge certificate (for applicants employed in the merchant navy), PIO card issued by Government of India (in the case of PIOs).
According to SBI, the attestation of documents may be done by Foreign Offices/Rep. Offices or Indian Embassy/Consulate or Overseas Notary Public or officials of branch/sourcing outfits based in India.
Property papers required by SBI
- Permission for construction (wherever applicable)
- Registered agreement for sale (only for Maharashtra)
- Allotment letter
- Stamped agreement for sale
- Occupancy certificate (in case of ready to move property)
- Share certificate (only for Maharashtra)
- Maintenance bill
- Electricity bill
- Property tax receipt
- Approved plan copy (xerox blueprint) and registered development agreement of the builder
- Conveyance deed (for new property)
- Payment receipts or bank account statement showing all the payments made to the builder or seller
For salaried NRI and PIO applicants, co-applicants and guarantors are required to provide:
- Valid work permits
- Employment contract (in English) duly attested by the employer, consulate, SBI foreign office or Embassy in case it is in any other language
- Last three months’ salary slip
- Last six months’ bank statement showing salary credit
- Latest salary slip in original
- Copy of identity card issued by the current employer
- Duly acknowledged copy of last year individual tax return (except for NRIs/PIOs located in Middle East countries and employees in the Merchant Navy)
For non-salaried NRIs and PIOs:
- Business address proof
- Proof of income
- Audited balance sheet of the last two years and P&L accounts
- Individual tax returns for the last 2 years (except for NRI/PIO located in Middle East countries)
- Six months’ bank statements of overseas accounts in the name of the individual as well as the company.
More details about SBI’s NRI home loan scheme are available here.