India’s multinational bank, the State Bank of India is now open to provide home loans to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO) with a maximum home loan repayment tenure being fixed at 30 years.

In order to avail the option, NRIs and PIOs are required to fulfill certain criteria and submit a set of prescribed documents. As per the statement released by the bank, SBI charges the interest rate on the principal home loan amount on daily reducing balance.

According to the guidelines, borrowers between the ages of 18 and 60 years are entitled to the loan and as well available as an overdraft. SBI charges a processing fee at a rate of 0.35 percent of the home loan amount excepting service taxes between INR 2,000 and INR 10,000.

The documents required by the bank consists of an employer identity card, attested copy of valid visa and passport, address proof mentioning the current abroad address, copy of continuous discharge certificate (for applicants holding down a job in the merchant navy), PIO card issued by Government of India (in the case of PIOs).

According to SBI, the attestation of documents may be done by Foreign Offices/Indian Embassy or Representative Offices/Consulate or Overseas Notary Public or officials of branch/sourcing outfits based in India.

Property Papers Required by SBI

• Permission for construction (wherever applicable)
• Registered agreement for sale (only for Maharashtra)
• Allotment letter
• Stamped agreement for sale
• Occupancy certificate (in case of ready to move property)
• Share certificate (only for Maharashtra)
• Maintenance bill
• Electricity bill
• Property tax receipt
• Approved plan copy (xerox blueprint) and registered development agreement of the builder
• Conveyance deed (for the new property)
• Payment receipts or the bank account statement showing all the payments made to the builder or seller

For Salaried NRI and PIO Applicants, Co-Applicants and Guarantors Are Required to Provide:  

• Valid work permits
• Employment contract (in English) duly attested by the employer, consulate, SBI foreign office or Embassy in case it is in any other language
• Last three months’ salary slip
• Last six months’ bank statement showing salary credit
• Latest salary slip in original
• Copy of identity card issued by the current employer
• Duly acknowledged copy of last year individual tax return (excluding NRIs/PIOs residing in Middle East countries and employees in the Merchant Navy)

For Non-Salaried NRIs and PIOs: 

• Business address proof
• Proof of income
• The audited balance sheet of the last two years and P&L accounts
• Individual tax returns for the last 2 years (except for NRI/PIO located in Middle East countries)
• Six months’ bank statements of overseas accounts in the name of the individual as well as the company

By Sowmya Sangam