NRI HOUSING LOAN, HTL, NRI

NRI HOME LOAN
SALIENT FEATURES
Purpose of LoanLoans to NRIs & PIOs can be extended for the following purposes.
1. To purchase/construct a new house / flat
2. To repair, renovate or extend an existing house/flat
3. To purchase an existing house/flat

4. To purchase a plot for construction of a dwelling unit.
5. To purchase furnishings and consumer durables, as a part of the project cost

Eligibility criteria
Minimum age 21 years
Valid Indian Passport (for NRIs)/ valid foreign passport (for PIOs)
Steady source of income
Employed abroad for at least 2 years
Valid job contract or work permit
Minimum net monthly income (NMI) of US$ 500 or minimum Net Annual Income (NAI) of US$ 6000/- (or its equivalent in any other foreign currency)
Loan AmountMinimum loan amount : Rs. 3 lakhsMaximum loan eligibility :
60 times NMI/5 times NAI for applicants below 45 years of age 48 times NMI/4 times NAI for applicants above 45 years of age
Subject to the following :
Maximum loan amount for repairs and renovation : Rs.10 lacs
Maximum loan amount for purchase of plot for construction of house : Rs.20 lacs
Maximum Loan amount for purchase of furnishings and consumer durables : 10% of the project cost, subject to a maximum of Rs.3 lacs.
Aggregate repayment obligations should not exceed 50% of NMI/NAI

Margin : 15%
Processing Fee : 0.50% of the loan amount (incl. service Tax)
Advocate's fee and Valuer's fee extra
Interest
Interest rates are same as applicable for resident Indian borrowers for various tenures, available on fixed/floating/combination of fixed and floating rates (under SBI-Flexi Home Loans)
Repayment in EMIs (Equated Monthly Installments)
Interest is applied on daily diminishing balance basis
Interest Rates w.e.f 12.08.2008
Floating interest rates (linked to State Bank Advance Rate - SBAR)
(SBAR: 13.75% p.a.)
Loan amount Upto Rs.30 Lacs and Loan Tenor ->
Upto 5 years - 2.25% below SBAR, PER* 10.50% p.a.
Above 5 years and upto 15 years - 2.00% below SBAR, PER* 10.75% p.a.
Above 15 years and upto 25 years - 1.75% below SBAR, PER* 11.00% p.a.

Loan amount Above Rs.30 Lacs and loan tenor
Upto 5 years - 2.00% below SBAR, 11.75% p.a.
Above 5 years and upto 15 years -1.75% below SBAR, 12.00% p.a.
Above 15 years and upto 25 years -1.50% below SBAR, 12.25% p.a.
Fixed interest rates
Tenure, Loan Amount
Rate of Interest (p.a.)**
Upto 10 Years, Loan upto Rs.30 Lac
12.75%
Upto 10 years, Loan above Rs.30 Lac
13.75% *PER = Present effective rate** Fixed rate loans will be subject to : 'force maejure' clause and interest reset at the end of every two years on the basis of fixed interest rates prevailing then.Click here to view the latest interest rates
Maximum Repayment Period
For borrowers aged upto 35 years : 25 yearsFor borrowers aged above 35 but below 45 years : 20 yearsFor borrowers aged 45 years and above : 15 years
Subject to liquidation of loan by the age of 60 years or the age of retirement which ever is earlier
Mode of Repayment
Remittances from abroad through normal banking channels
Out of funds in NRE/FCNR/NRO accounts
Remittance out of local funds by close relatives. Moratorium period
In respect of construction of new house/flat - 24 months from the date of first disbursement or 2 months after completion, whichever is earlier
In other cases - 2 months after last disbursement
Security
Equitable mortgage by deposit of title deeds
Registered Mortgage may be taken when considered necessary
Additional security by way of lien over credit balances in deposit accounts, NSCs, Life policies ,Third Party Guarantees etc. may be taken, if security is either inadequate or not free from encumbrances
Innovative and Hybrid suite of Home Loan products to choose from :SBI Maxgain Home Loans- which enable the borrower to avail the Loan as an Overdraft. The borrower can park his surplus funds in the loan account, significantly reducing his interest burden/optimize yield on his funds. Borrower is eligible for International ATM-Debit Card, Internet Banking Facility and cheque book to operate the loan account.SBI-Flexi Home Loans- facility to avail Home Loan with a customized combination of fixed and floating interest rates, to effectively hedge the risks arising due to interest rate volatilitySBI-Realty Home Loans- Exclusive scheme to suit the requirements of borrowers who intend to avail loan for purchase of plot of land for construction of houseSBI-Freedom Home Loans- Tailor made product for NRIs, enabling the borrowers to avail loan by pledging other securities like Banks deposits/National Savings Certificates/ Life policies etc. standing in the name of the applicant/ third party- complete freedom from the hassles of mortgage formalities.
Documents Required
Completed Application Form
2 passport size photographs of each applicant
Proof of Identity - Copy of Passport/IC/PIO card (Passport with Visa stamped thereon)
Valid work permit
Employment contract. An English translation duly attested by employer/consulate/SBIs foreign branches/offices, Embassy in case of any other language
Last salary certificate/slip in original and copy of identity card issued by the current employer/proof of income in case of self employed professionals/businessmen
Details of previous employment
Bank Account statement/passbook for the previous six months. Overseas Bank Account Statement/Passbook showing salary and savings, if any
Proof of residence (driving license / utility bills etc.)
Copy of Continuous discharge Certificate (CDC)- for applicants employed in the merchant navy
Sale Deed/Agreement for Sale
Copy of Approved building plans/approvals in respect of proposed construction/purchase/extension
Original NOC under the Provisions of ULC Act
Copy of the Order permitting Land Conversion in case of conversion of Agricultural land
Non Encumbrance Certificate for 30 years
Copy of the land tax receipt/building tax receipt
Copy of the Allotment letter of Housing Board/Builder/Co-op. Society
Detailed Cost Estimate/Valuation Report from approved valuer (In case of outright purchase of an existing house/flat)
Notarized Power of Attorney in respect of applicants who propose to authorize a third party to execute the documents/complete the mortgage formalities/avail the loan instalments.
Other documents as required by the Bank

Other product highlightsInnovative and hybrid product offerings :
No prepayment fees for pre-closure of loan after half of the original tenure of the loan
Provision to add expected rent accruals, if the applicant proposes to let out house/flat
Door Step services within India by dedicated team of Home Loan Outbound Sales Force
Centralized processing of loan applications with minimum turnaround time
Centralised processing at RACPCs( Retail Account Central Processing Cells) at selected centers for prompt disposal