Being in US, how can I apply for home loans in India?

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Buying a property in India while being employed here in US is a very common phenomenon among desi community. In most cases, you will be looking for home loans to own the property in India.

  • Finalize your property (of course, huh).
  • Identify a ‘Power of Attorney’ (or simply POA) in India who can take decisions and sign documents on your behalf. This should be a person you trust and preferably from within the family (parents or in-laws). You need to download the POA form from bank website, complete it and get it notarized by a notary. It is advisable to restrict the POA powers to just buy/sell and execute bank loan on your behalf.
  • Alternatively, you can travel to India and do the paperwork as and when required (with bank as well as property dealer). This may not be always required but you can avoid appointing a POA in that case.
  • Get a list of required document from the bank and get them notarized too. In most cases, you will be asked to submit these documents: Notarized Power of attorney, resume, Passport copies, Visa page, Petition document, last 6 months salary slips, Credit report, Bank account statement for last one year, driver’s license photocopy, Address proof in US, Age proof document. This is not an exhaustive list and bank can ask you for more documents.
  • Send the documents along with POA form to your appointed POA. They can take the process further with the bank and property dealer within India.

Keep in mind the following while applying for a home loan:

  • Prefer applying for a home loan with a public sector bank like SBI, Bank of Baroda, LIC housing etc. as there are no hidden fees, pre-payment charges etc. The initial process may be little elaborate but it works out in the longer run. HDFC and ICICI are also very good and require less paperwork and provide good customer care support during the whole application process.
  • You can get in touch with SBI US branch too who can help you out with getting a home loan.
  • Public banks will ask you to open NRE/NRO account with them before you apply for a home loan.
  • Some banks ask for a personal discussion with the customer before sanctioning the home loan. You might be required to travel to India in those cases. Check for all the processes before you apply for a loan.

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