Also the documents needed to provide for availing a home loan by the NRIs are different from the residents. They are required to submit additional documents, like copy of the passport and a copy of the works contract, power of attorney etc.

The repayment for an NRI home loan is done through EMIs that includes interest and principal amount calculated on the monthly basis. The borrower can pay the EMIs by issuing post-dated cheques from his (NRE)/ (NRO) or Non Resident (Special) Rupee Account (NRSR) in India or any other account approved by the Reserve Bank of India (RBI). Also for security purpose, banks stress on keeping the first mortgage of the property in their name and if the property is under construction then an additional security such as guarantee of third party is required. This third party can be both a resident and a non-resident of the country.

Home loans are eligible for tax rebate but NRI cannot claim this benefit on home loans in India as they are eligible to pay tax in the country in which they reside and work.

An NRI who wishes to avail a property back in India can accomplish his dream by relying on an NRI home loan. The aspects covered above would have cleared doubts about the sanction and availability of such a loan.