You must be familiar with the term LAP or Loan Against Property. You simply mortgage the property and a loan is given as a percentage of the property’s market value. The procedure for availing a loan against property for an NRI is not much different from any normal resident Indian citizen. He just needs to be the owner of the residential or commercial property.
Do banks sanction loan against property to NRIs? Yes, they definitely do and if you are an NRI, banks will easily sanction LAP if you meet the eligibility criteria. You need to be salaried and work for a reputed Organization. LAP is given to NRIs who work in selected countries. Banks sanction loans to salaried NRIs and PIOs (Person of Indian Origin).
Who is an NRI? An NRI is an Indian citizen who stays outside India for the purpose of a job or a business. A person is called a resident Indian if he/she stays in India for at least 182 days in a financial year or 365 days spread over four consecutive years. Otherwise he is an NRI. A person of Indian origin (PIO), is a foreign national of Indian origin. He/She could previously have held Indian citizenship or was born in India.
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1. Identity and address proof: You need an identity and address proof like Passport, PAN, Driving License or the latest utility bill.
2. Income proof: The bank will want income proof to show salaries credited to your account. You will also have to furnish passport details along with the relevant visa stamps, the copy of your work permit or work visa, a document which supports your status as an NRI, the latest salary slips and overseas bank account statements. If you are self-employed, the bank will want to see your trade license, Profit and Loss account and the balance sheet, the income computation of the last 3 years which has been performed by a certified chartered accountant.
3. Income proof for salaried NRIs:
4. Income proof for NRIs working in the Merchant Navy:
See Also: How To Get A Business Loan From A Bank?
The final step is applying for the loan against property. You can apply for LAP online, or you can visit the bank in person and submit the necessary documents.
An NRI can make repayments using the NRE Account, NRO Account, inward remittances, liquidation of FCNR (Foreign Currency Non-Repatriable Account), a close relative’s bank account and money obtained from the sale of an immovable property based on which the loan was sanctioned.
See Also: BBMP Property Tax
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