These are the loans provided to the NRIs to enable them to fulfil their various types of monetary needs like purchasing a plot, house or making renovations in the excising structure. Various public and private sector banks are competing with each other to help the NRIs to meet their financial needs.

A non-resident Indian (NRI) is an Indian citizen ,or a person of Indian origin who is born and resides outside India. It is the same as an overseas Indian and expatriate Indian. It includes Indian born individuals and also people of other nations with Indian blood who have taken the citizenship of other countries.

NRI loans are offered for building a house or for buying a plot or a house in the country. All the banks follow the RBI guidelines to define NRI as: "Any Indian citizen who holds a valid Indian passport and who stays abroad for employment or for carrying on business or vocation outside India is a NRI. Interest rates for NRI loans do not vary much from that of the Indians living in this country and the eligibility criteria is also the same, but the loans are sanctioned for a shorter period. NRIs get only 85% of cost of home as loan amount. The size of the loan depends upon the borrower's repaying potential. Up to 36 times of the gross monthly earnings of the applicant may be issued as loan, but there is a maximum limit.

As the NRI is living far away, banks take greater care in home loans so they ask for more documents for ensuring their eligibility for issuing loans. It include passport and visa, copy of the appointment letter and contract from the company employing the applicant. The labor card/identity card (translated in English and countersigned by the consulate) if the person is employed in the Middle East, Salary certificate specifying name, date of joining, designation salary details and Bank Statements for the last six months are the other documents required for availing these loans.

Let us observe some important property documents that an NRI needs for home loans which includes original title deeds tracing the title of the property for a minimum period of the last 13 years. Encumbrance Certificate for the last 13 years, agreement of sale /construction, approved plan / license clearance /conversion order etc., are the other requirements. Receipts for investment of the margin money through normal banking channels from the Non-Resident ( External ) account in India is also needed.

The re-payment can be made as equated monthly Installments through Non-Resident Ordinary (NRO) account. Banks usually offer home loans for up to 15 years to 20 years, to people who live in this country. The one exception is ICICI Bank which has tied up with several builders in Mumbai, Delhi and NCR and provides full finance if one purchases property from any one of them. In case of the NRIs, more emphasis is laid on their qualifications, job profile, probability of carrying on abroad for the loan tenure and the probability of repaying the loan with an extended tenure if the NRI wishes to return to his home country.

Thus, as a result, a large number of documents must be submitted for a loan. Most banks insist that the first mortgage of the property should be in the borrower's name. In case of property under construction an adequate additional security is required like guarantee of third party. The loan fees vary from bank to bank, but these days loans are easily available to the NRIs.

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