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Get to Know All About Home Loan for NRIs


Every NRI is seek to buying a home in their home country, but the question is: Can NIR take a loan to buy a property in home land? Yes, NRI can take home loan in home country. However, Home Loan for NRIs is not so easy task, it has many complication as it includes large scale documentation and paper work.
This Blog will help you in some extent to get an idea and knowledge about home loan for NRIs. You can find each step of NRI home loan with list of required documents below. Lets Check it out:


As obvious, there are some criteria or eligibility for NRIs to taking a home loan. Current status of bank, any person who is an Indian citizen staying abroad for purpose of employment, business or vacation outside India are entitle for NRI housing loan. Another status is, A person who posted abroad by the Indian government or companies like the IMF, UN, World Bank etc. are eligible to take a home loan.

Apart from this, loan applicant must be 21 year of age, must be graduate, with minimum monthly income of US $2,000. Applicant must have an NRE/NRO account in bank to make a payment of EMI.

Documents Required:

  1. Copy of Passport and Visa
  2. Copy of Appointment letter and contract
  3. Salary Certificate, work experience
  4. Bank statement of NRE/NRO account for last six months
  5. Copy of local income tax returns of residence country
  6. Copy of Contract of employment
  7. Work Permit etc.

Home Loan Application:

Procedure of Home loan for NRIs is different than loan loan for residents of India  to know more about home loan procedure for residents of India you can refer link as :- Procedure of getting home loan .  After categorized eligibility, you can apply for home loan. For application and submission of documents, you need not to come to India, many banks have their overseas branches where you can contact. You need to submit a bunch of required documents which is mention in the above list to bank.

Apart from this, you should create a general power of attorney in favor of an immediate relative currently living in India who would act on behalf of you with the bank. This power of attorney must be signed and attested by the Indian Embassy.

Approval by Bank:

Maximum amount of loan approved by the bank is all depends on your income and educational qualification. After checking all the documents and legal procedure, bank will approve advance payment of loan up to 80-85% on value of property subject to gross monthly income (GMI) of an individual.

Rate of interest charged on NRI home loan is always higher than residents of India as it involves more risk. Many banks levy about 0.25 per cent to 0.5 per cent higher interest for NRI home loans.

Option for Repayment of loan:

The repayment of these loans can only be through Non-resident External (NRE) or Non-resident Ordinary (NRO) accounts with remittance from abroad. No other funds can be used for repayment of these loans. The repayment needs to be made in Indian Rupees only.

Indian residents can utilize home loan for maximum 30 years of tenure but NRI are restricted to have tenure of only 10-15 years and no further extensions are applicable in most of the home loan cases.


Category : Flatons Advisors Blog



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