Why Financial Planning?

Planning is bringing the future into the present so that you can do something about it NOW.

NRIs can buy residential as well as commercial property in India but they can’t buy agricultural land. NRIs can also buy multiple properties too.

Non- Resident Indians can take a loan to buy the property just like Resident Indians. Just like for resident Indians, 70%-90% of the value of the property can be funded by a loan. The remaining amount has to be funded by the NRIs personal resources. It is important to note here that the remaining amount has to be paid in INR. It cannot be in any other currency.

NRI Home Loans in India

Check – Can NRIs get a Car Loan In India?

Home Loan Checklist For NRIs

NRI Home Loans are provided by most major banks in the country and financial institutions. Here is a checklist of requirements for NRI home loans.

NRI Home Loans in India Eligibility Criteria:

Age – Most banks expect the applicant to be between the ages of 24-60 years. For example, Axis Bank wants the applicant to be at least 24 years old and ICICI bank has the minimum age at 25 years.

Work Experience – Banks expect the applicant to be abroad for at least 6 months. ICICI Bank expects a one-year period before applying for a loan. Different banks have different tenure expectations.

Income – Banks require a minimum income level to apply for a loan. Axis Bank expects the income to be equivalent to at least AED 5000 per month for GCC countries and income to be equivalent to at least USD 3000 per month for the USA and Other Countries The income level is different for different countries and types of employment.

A Complete Guide For Home Loan Checklist for NRIs

Must Read – Best Bank for NRI In India

Documents Required for Home Loan in India 

Identity Proof:

Any identity card such as PAN, Passport, Aadhaar Voter ID or Driving License

Address Proof:

Any document with your address in India – Passport, Aadhaar, Voter ID, Telephone Bill or Driving License

Income Proof:

– Any of the following –

Salary Slips (Salary Credits), Appointment Letter, Bank Statement where salary is   received

If the NRI is self-employed, then validated financial statements.

– IT Returns

Must Read – NRI personal loan

Property Transaction Documentation:

– Property documents such as Agreement for Sale, Property Allotment letter

– Permission for construction (if applicable).

– Loan Application documentation

– Receipts of payment made if any.

– Insurance policy documentation

Must Check – Gift by NRI to Resident Indian

Loan Amount/Charges:

Different banks have different thresholds for the loan amounts.

For example, SBI offers a minimum loan amount of Rs. 3,00,000.

Usually, banks offer loans up to 70%-80% of the property value.

Processing fees range from 0.25% to 3%. There are penalties for late payment and for pre-payment of the entire loan amount

Home Loan Checklist for NRIs

Check – Power of Attorney In India For NRI

NRI Home Loans In India Interest Rate

Banks Interest Rate
SBI 6.90% -7.50% p.a.
Bank of Baroda 6.85% -7.20% p.a.
PNB Housing Finance Limited 7.50% -9.70% p.a.
Axis Bank 6.90% -8.55% p.a.
HDFC Ltd. 6.90% -8.00% p.a.
Canara Bank 6.90% -8.90% p.a.
Federal Bank 7.90% -8.05% p.a.
Bank of India Star Pravasi Home Loan 6.90% onwards
Indian Overseas Bank 7..05% -7.30% p.a.
Indiabulls 8.99 % p.a.

Tax Benefits of NRI Home Loans

Section 80C of the Income-Tax Act, 1961 allows for tax benefits if one is an NRI and is filing taxes in India. The tax deduction is for both interest and the principal portions of the loan.

If your house, the property is lying vacant in India, and you have a bank loan against it. You can avail the following tax benefits.

Interest component: Deduction of up to Rs.2 lakh on the interest amount repayments

Principal component: Deduction of up to Rs.1.5 lakh on the principal amount repayments

If the home has been rented out, then the entire interest payable can be claimed as a tax deduction on your home loan.

NRI Home Loan Repayment:

An NRI can repay the housing loan through remittances made from abroad through normal banking channels or through an NRE account/NRO account or out of rental income derived from the property.

The loan can be repaid in Indian Rupees only.

Repayment tenure can be between 20 years -30 years. For example, the loan tenure in the case of ICICI Bank depends on educational qualifications.

PNB has a repayment tenure of a maximum period of 15 years in case of home purchase/construction and 10 years in case of home improvement.

There might be some other requirements or documentation depending on the bank from where the loan is disbursed. Check with your bank to understand the exact requirements, eligibility, features, and conditions.

If you are an NRI & have any questions regarding a Home loan for NRI  in India- add them in the comment section.

NRI Home Loans in India
Published on March 4, 2022

Hemant Beniwal


Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A. He started his Financial Planning Practice in 2009 & is among the first generation of financial planners in India. He also authored Bestseller book "Financial Life Planning". 

    • Hi Shagun,
      As per my knowledge, If you work in any of the Gulf Cooperation Council (GCC) countries then you need to have a minimum monthly income of 5,000 AED (United Arab Emirates Dirham) and for working in the US and other countries $3,000 per month is the minimum salary to be earned if you want to take an NRI home loan.

  • I have sent a question about 3 days regarding availing home loan by an NRI for property purchase in India vs availing loan by local person & NRI daughter sends money for the EMIs. Which is ideal option? Any tax implications for my NRI daughter is my worry.

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