ICICI Bank NRI Home Loan

ICICI Bank NRI Home Loans

NRIs An Introduction

Hundreds of Indians immigrate to different countries each year for work, higher studies or business opportunities. This migration has led to thousands of families located in North America, Europe and Middle East.

Coined as NRI (Non-Resident Indians) are people who have an Indian passport and are living abroad for a long time (more than a year) for work, studies or other legal purpose. According to FEMA an NRI is “who resides outside India for employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period”. It also mentions that any Indian who hasn’t lived in India for more than 182 days during that financial year he/she is considered an NRI.

It is to these people that banks like ICICI Bank provide home loans at competitive and exclusive interest rates.

ICICI Bank NRI Home Loan

An NRI home loan will follow the same structure as a normal home loan with the loans being repaid in Equated Monthly Instalments (EMI). The difference arises in the interest rate and tenure, where the interest rate for NRIs is slightly higher and the loan tenure is lower than compared to home loans provided to Indian residents.

The NRI home loans have lower tenure as the borrowers earn a handsome income which indicates a higher repaying capability. Moreover, most of the NRI borrowers wish to close the loan at the earliest.

Benefits of ICICI Bank NRI Home Loans

Attractive interest rates on a monthly reducing basis.
Choice from fixed and floating interest rates.
Part–prepayment facility for zero fees.
Free personal accident insurance to the extent of loan outstanding.
Doorstep service in India till disbursement.

ICICI Bank NRI Home Loans Eligibility Criteria

The NRI home loan is offered to people who have been living outside India whose loan tenure, loan amount sanctioned, and interest rate will depend on the customer’s profile, age of customer at maturity of loan, age of property at loan maturity, depending upon the specific repayment scheme as may be opted and any other terms which may be applicable based on prevalent norms of ICICI Bank.

Age: Minimum 25 years of age and maximum 60 years of age at the time of loan maturity

Residential status:

Salaried – Should have lived abroad for at least 1 year

Self-employed – Should have lived abroad for at least 3 years

Loan Tenure – Salaried

Maximum Loan tenure is 10 years for people with qualification of Graduate/ Diploma
Loan tenure between 11 to 15 years, for Middle east minimum qualification is Post Graduate/ professional degree

Self-employed

Loan tenure 11 to 15 years, for USA and all other countries minimum qualification is Graduate/ Diploma with minimum 3 years of employment abroad/ professional degree with min 1 year of employment abroad.
Maximum loan tenure is 20 years for Home Loan and Home Improvement Loan. Maximum tenure for Land loan and Home equity loan-Residential is 10 years

Income criteria

Country/Employment Type	Salaried	Self-Employed	Merchant Navy
USA & Other Countries	42000 USD	42000 USD	42000 USD
GCC	84000 AED*	48,000 AED	42000 USD

*72000 AED if accommodation is provided by Employer.

Amount mentioned above or equivalent.

Fees and charges for ICICI Bank NRI Home Loan

Product/Service	Fees
Interest rate	Starts from 8.75%
Processing Charges	0.5% of the loan amount + applicable Service Tax & Surcharge
Prepayment charges	2% of outstanding loan amount
Loan type switching fee	1.75% of outstanding loan amount

Important factors NRIs need to remember before applying for a Home Loan

Loan Repayment

As per RBI rules Repayment must be done in rupees through an account in the India or utilizing NRE or NRO accounts. If the property is rented out the rent receipt can be used against the Equated Monthly Instalments (EMI)

Tax benefits

As with resident Indians NRIs can also avail tax benefits on home loans under section 24 and 80c. NRIs can get tax exemption on the interest paid for a maximum of Rs. 2,00,000 and Rs.1,50,000 on the principle paid under section 80c. If it is a joint loan taken with another NRI or resident Indian/s then each member can avail for the tax benefits separately.

Restrictions in property owned

The Government of India has stipulated that an NRI can only own 2 houses in India. That is, they can own only 2 properties for residential purposes. Even if the properties are rented out they can only own two. They can own any number of commercial properties while they cannot own land for agriculture.

Documents Required for ICICI Bank NRI Home Loan

The following are the documents required to apply for the NRI Home Loans

Personal details documents

1 passport size latest photograph of each applicant (applicant & co-applicant) with signature across
Valid passport copies for all the applicants
Valid visa copies for all the applicants
Cheque / Draft in INR for fees (as per applicable rate) and the date must be in dd/mm/yyyy format*
Power of Attorney document as per bank format duly signed by all the applicants
Authority letter duly signed by all the applicants as per bank specified format
Company details as per bank format
Copy of current overseas residential verification proof of all the applicants to the loan. (Driving license or bank statement showing overseas address or latest insurance premium receipt or utility bill)
Copy of PAN Card for the first applicant OR Form 60 as per bank format attached here with
Self-attested address proof of all applicants

Financial details documents: for salaried individuals

Copy of current appointment letter OR Copy of salary certificate clearly mentioning the date of joining, current salary earned, and designation held in the company
Copy of previous appointment letters
Last 3 months salary slip for fixed salary and last 4 months for variable salary
Last 6 months bank statements clearly mentioning salary credits in the account

Financial details documents: for self-employed individuals

Copy of

Incorporation of business
Income Proof -

Middle East: Last 2 years audited/C.A certified P&L accounts.
US & Canada: Last 2 years CPA compiled/reviewed/audited P&L accounts.
Others: Last 2 years C.A or equivalent certified/audited P&L accounts.

Partnership deed (in case of a partnership firm)
MOA & AOA of the company (in case of a private limited company)
Last 6 months bank statements in the company's name
Last 6 months bank statements in individual's name
Business profile and office address proof

NRI Personal Guarantor documents

If you have opted for an NRI Personal Guarantor on your loan, arrange to send the following documents

Passport & visa copies of the NRI Guarantor
Current overseas address verification proof of the NRI Guarantor. (Driving license or bank statement showing overseas address or latest insurance premium receipt or utility bill)
Current income documents of guarantor

ICICI Bank Home Loan EMI Calculator

To know how much you will have to pay as EMI on ICICI Bank home loan, you can visit the official website of the bank. Go to ‘Tools and Calculators’ page where you will find the option for ‘Home Loan EMI Calculator’. After entering the page, you will find three fields where you need to enter the following details: 1) Loan Amount, 2) Interest Rate and 3) Tenure in years.

After entering the necessary details, the calculator automatically calculates the loan EMI amount to be paid and delivers the result on the same page. It takes less than a minute to check the EMI amount against the home loan to be taken.

You can also view a similar home loan EMI calculator on CreditMantri website and apply for the loan directly. You will find the results of total amount payable with interest and interest payable separately.