Executing a Power of Attorney (POA) for an NRI home loan involves specific procedures depending on whether the document is signed within India or abroad.

The following are the key points regarding the standard procedure and requirements:

General Requirements for the POA Holder

• Residency: In all cases, the appointed Power of Attorney holder must be a resident of India.

• Identification: A photograph of the POA holder must be pasted on the document and attested by the person(s) making the POA (the executants).

Execution Inside India

• Documentation: The POA must be on a prescribed format using non-judicial stamp paper of the appropriate value based on the state of execution.

• Attestation: The signature of the executants must be attested by a Notary Public or a Judicial Magistrate.

• Signing: The executants must sign every page of the Power of Attorney.

Execution Outside India

• Location of Signing: The executant must sign the POA in the presence of an official from the Indian Embassy, Consulate, or High Commission in their country of residence.

   

• Official Attestation: The embassy or consulate official will attest the signatures.

• Stamp Duty: While it can be executed on plain paper abroad, the appropriate stamp duty must be paid in India within three months of receiving the document and before the loan documents are executed.

   

• Signing: Similar to execution in India, the maker must sign every page of the document.

Loan Disbursement Process

• Verification: After the POA holder executes the loan documents, the bank will obtain a direct confirmation from the NRI executant using a prescribed format.

   

• Condition for Funds: Loan disbursement occurs only after the bank receives this confirmation letter from the NRI borrower.

Scope of the Attorney’s Power

The POA holder is authorized to perform several critical tasks, including:

• Executing all deeds and documents required by the bank for the home loan.

   

• Depositing original title deeds to create a mortgage (security) on the property.

   

• Appointing advocates or solicitors and paying their fees.

• Obtaining necessary clearances or permissions from relevant authorities regarding the property.