Sensing a sizeable market in Indian diaspora living and working overseas now, the State Bank of India (SBI), India’s largest lender now also offers home loans for Non-Resident Indians (NRIs).
Here we dissect the key features of its NRI home loan programme that in recent times has been gaining prominence.
The key features of SBI home loan programme are as follows:
Eligibility:
Any person with a regular source of income (clubbing of income of co-borrowers / guarantors and expected rent accrual on proposed property is permitted subject to certain conditions), or any person employed abroad for at least two years or a valid job contract for a minimum period of two years abroad who has completed six months of employment or working abroad on assignments with foreign Governments / government agencies or International / Regional Agencies like the UNO, IMF, World Bank etc. or Central Government, State Government or Public Sector Undertakings, officials deputed abroad on temporary assignments or posted to their offices (including Indian Diplomatic Missions) abroad is considered eligible.
Further, existing Non-Resident Rupee (NRE) account and/or a Non-Resident Ordinary Rupee (NRO) account holder with SBI are also eligible.
Amount:
There are different schemes under which SBI currently disburses the Home loan, these are as follows:
Minimum loan amount For NRI Home Loan is Rs. 3 lacs, for maxgain Rs. 20 lakh, for realty Rs. 3 lakh and for PAL (pre-approved loan) Rs. 10 lakh. Further, while maximum loan amount for reality is Rs10 Cr, for maxgain and PAL plans, SBI makes use of LTV ratio i.e a term to express the ratio of a loan to the value of an asset purchased. Under this, for home loans up to Rs. 75 lakh, LTV ratio for salaried applicants is 80 per cent and 75 per cent for non-salaried applicants. For home loans above Rs. 75 lakh, LTV ratio for salaried applicants is 75 per cent and 70 per cent for non-salaried applicants.
Repayment: While for realty the maximum time for repayment is up to 15 years, for maxgain and PAL, the maximum time is 30 years or up to the age of 70 years, whichever is earlier besides, the aggregate repayment should not exceed 50 per cent of NMI (net monthly income)/ NAI.
As of now, the maximum moratorium period being offered by SBI is 48 months.
In addition to NRI home loans, the existing basket of offerings of the largest banking and financial institution in India with a presence in 37 countries also include loans such as personal loans, home loans and education loan.
As per Ministry of External Affairs report, there are approximately 31.2 million Indian diaspora residing outside India.
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