Owning a home is one of the aspirations for many of us. The same holds good for Non-Resident Indians who reside outside their home country due to work or business. Just like Resident Indians, NRIs could also avail home loans for buying homes/land in India.

​

Who is defined as an NRI? 

The Reserve Bank of India (RBI) defines an NRI as "An Indian citizen who holds a valid Indian passport and stays abroad for employment or carrying out business or vocation under circumstances indicating an intention for an uncertain duration of stay abroad.” So those eligible for home loans under this category would be those employed or carrying out business outside India.  

All banks and financial institutions go by this definition of NRI.

​

What kind of Properties are Allowed under NRI Home Loans? 

All kinds of built and under-construction properties are allowed under NRI home loans. Construction of property on an owned piece of land or even modifying the existing property can also be considered for home loans.

​

Eligibility and Other Requirements for an NRI Home Loan 

• It is good to know some important eligibility and other criteria required to avail an NRI home loan.  

• The salaried and self-employed individuals are allowed NRI home loans 

• The age limit criteria ranges between 21-70 years 

• Banks lend for a maximum tenure of 30 years 

• A loan to value ratio of 80-85% is generally sanctioned  

• The income, employment status, educational qualifications and the amount of loan applied for play an important role in deciding the maximum loan eligibility. 

• Documents required for processing an NRI home loan are different from the ones for home loans for residents. Copies of passport, valid visa showing NRI status, PIO card, work permit/license, employment details like contract, experience certificate, salary status and bank statements of the NRE/NRO accounts held are needed.  

• Repayment is possible only through linked NRE/NRO account 

• Most banks and financial institutions insist on having a co-applicant who resides in India 

We bring to you details on 5 banks that offer best deals on NRI home loans.

​

SBI NRI HOME LOANS 

Important Features 

• No Penalty on Pre-Payment 

• Interest charges on Daily Reducing Balance 

• Repayment tenure up to 30 years 

• Facility of Home Loan Available as Overdraft 

• Interest Concession for Women Borrowers 

​

Eligibility 

• Resident Type: Non-Resident Indians (NRIs) or Persons of Indian Origin (PIOs) 

• Minimum Age: 18 years 

• Maximum Age: 60 years 

• Loan Tenure: up to 30 years. 

• Maximum loan amount allowed depends on your relationship with the bank and other factors 

​

Bank of Baroda NRI Home Loan 

• The Home Loan sanctioned will be linked with Saving Bank Account 

• The rate of interest applicable on this SB account will be Zero 

• Under the scheme, the borrower shall have the option to deposit all his savings in the linked SB account to avail maximum benefit of interest in the Home Loan account 

• Any credit available in the linked SB a/c at the end of the day will be counted for credit in linked Home Loan account. Consequently, the borrower will get the benefit of interest amount reduction in the Home Loan account to the extent of daily outstanding credit balance in the Savings Bank account 

• The borrower will remit the Equated Monthly Installments (EMIs) into the linked SB account 

• Recovery of EMI will be made by way of auto recovery from linked SB account only

​

Eligibility 

• Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs) holding foreign passport or Overseas Citizens of India (OCI) 

  • Individuals singly or jointly. HUFs are not eligible. 

  • Applicant/ co-applicant/s (whose income are considered for eligibility) should be having a regular job abroad in a reputed Indian / foreign company, organization or government department holding a valid job contract / work permit for the minimum past -2- years. 

OR 

• Should be employed / self-employed or having a business unit and staying abroad at least for -2- years. 

• Applicant / co-applicant/s (whose income is considered for eligibility) should have minimum gross annual income equivalent to Rs.5.00 Lacs per annum. 

Maximum Loan Amount is as below depending upon the place where the loan is availed 

• Mumbai: Rs. 10 Crores 

• Other Metro Cities*: Rs. 5 Crores 

• Urban Areas: Rs. 3 Crores 

• Semi-urban and Rural: Rs. 1 Crore