NRI home loan is for them who may be staying around the world but, their heart lies in India! And, as they say, home is where the heart is! So, if you are planning to invest in a home/property in India, all you need to do is contact a bank or Non-Banking Financial Company (NBFC) and get in touch with their home loan department.
Banks including HDFC, Axis, ICICI, Kotak, and SBI are considered as leading providers of home loan schemes. These banking institutions offer tailor-made NRI home loans at affordable pricing and exclusive terms. Indian banks’ NRI home loans are also quite popular among the NRI populace. With attractive interest rates, minimum paperwork, flexible repayment options and virtual guidance at all times, availing housing loan for NRI is now just a click away. NRI Home Loans offered by leading banks starts from 8.70% onwards. Below mentioned is a comparison of interest rates offered by leading banks and housing finance companies in India.
NRI Home Loan Interest Rates
Compare Top Banks for NRI Home Loans in India
|Bank||Interest Rate||Processing Fee|
|SBI||8.70% p.a. onward||Nil (uptill 31st December 2018)|
|HDFC Bank||8.80% p.a. onwards||Upto 1.25% of the loan amount or
₹3,000 whichever is higher+applicable tax
|ICICI Bank||8.95% p.a. onwards||0.5% of the loan amount +
applicable Service Tax and Surcharge
|Axis Bank||8.80% p.a. onwards||Upto 1% of the loan amount
subject to minimum of Rs.10,000/-
|LIC Housing Finance||8.70% p.a. onwards||As applicable from time to time|
|DHFL Housing Finance||10.00% p.a. onwards||Upto Rs. 5,000 + document
charges + Applicable GST
|Bank of Baroda||9.60% p.a. onwards||1% of Loan amount (minimum Rs.7500)
with maximum Rs.1,50,000/-
|Kotak Mahindra Bank||8.90% p.a. onwards||Nil (floating) & upto 1.25 (Fixed)|
|Indiabulls Housing Finance||8.80% p.a. onwards||0.50 to upto Rs. 10,000|
|Canara Bank||8.85% p.a. onwards||0.10% subject to a minimum of
Rs. 500/- and maximum of Rs. 10000/
Note: Interest Rates are subject to change from time to time at the discretion of the Bank and/or in accordance with directives from RBI.
Key Features & Benefits of NRI Home Loans
- You can avail NRI home loans to fulfill various requirements and meet your purposes like purchasing a house, building a house/property or renovating an old property in India.
- You can apply for the loan online, from any corner of the world, and track loan application as well.
- These loans come with attractive interest rates on a monthly reducing basis
- You are free to choose between fixed and floating interest rates.
- Part-prepayment facility is available for zero fees
- Simple application process.
- You can get the estimate of your home loan amount and EMIs by using NRI home loan calculator at paisabazaar.com.
- Quick and transparent online processing
- No prepayment charges for paying off loans before the due date
- Repayment of a loan in small EMIs and for longer tenure depending upon your finances
- You can avail all the service from the comforts of your home or office.
NRI Home Loan Eligibility
|Eligibility Criteria||Salaried or Self-Employed|
|Work Experience||Minimum 2 years of work experience in present company|
|Age Criteria||Minimum: 18 years Maximum: 60 years/retirement age|
|Loan Tenure||Up to 30 years|
|Loan Amount||Depends on the borrower’s profile|
|Interest Rate||8.70% onwards|
|Prepayment Charges||Nil to maximum of 2%|
|Late Payment Charges||1% to 3%|
|Resident Type||Non-Resident Indians (NRI) or Persons of Indian Origin (PIOs)|
The different profiles that are eligible to apply for housing loans are:
- Non-Resident Indian (NRI)
- Person of Indian Origin (PIO)
- Overseas Citizen of India (OCI) – except citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Bhutan or Nepal
As an NRI, you require a resident Indian as a co-applicant, co-borrower or co-owner of the property and be a part of the home loan application which is to be submitted.
If you are an NRI and wish to own a property in India, 21 years is the minimum age requirement. Maximum age limit is either 60 years or retirement age, whichever is earlier, at the time of maturity of loan.
As a loan applicant, you should have a minimum overseas work experience of one year for salaried and two years for self-employed.
Borrowers can check their eligibility through paisabazaar’s home loan eligibility calculator.
All leading banks, NBFCs and housing finance companies have defined different salary criteria. So firstly you can check, compare and choose interest rates offered by several lenders with other eligibility criteria and further can check income bracket of the desired lender.
NRI Home Loan Documents Required
NRIs need to submit the following essential documents to the lender for a hassle-free process:
- Full passportand work visa copy
- Duly filled loan applicationform
- Employer ID card
- 3passport size photographs
- Proof of valid work permit
- Copy of employment contract
- Current overseas residential proof, e. house lease agreement, bank statement, utility bill, card statement, etc.
- Salary slips of the past three months
- Statement for last six months of salary account and NRE/NRO account
- General power of attorney
- Last year ITR except for NRIs in Middle East nations and Merchant Navy Employees
- Details of previous loan(s), if any
- Property papers
Important Points to Keep in Mind when Applying for NRI Home Loan
- If you are self-employed, the maximum tenure possible is 20 years. However, if you are a salaried employee, it is 30 years.
- It is advisable to get the loan approval first and then decide on the property you want to buy. Your savings should be able to give you enough financial buffer.
- You need not worry about the age of the property. If the property is well maintained, and if the residual age of the property is 12 years, the bank will sanction the loan.
How to Apply for NRI Home Loan
- You can visit paisabazaar.com to check and compare best available home loan deals available for NRIs.
- You can compare and choose from the available options provided by several lenders.
- You can shortlist the best lender for you, based on your needs and requirements and fill in the application form on com itself.
- Once you upload all the necessary documents, one of ourexpert advisors will contact you to discuss various plans and later will help you to manage the entire application and disbursal process.
- Once you have chosen the right candidate as your co-applicant and joint-owner of the property in India, you will have to issue a power of attorney in his/her name.
- Afterwards, you will have to go to the Indian Embassy in your country and collect the power of attorney form in the format of the lender bank/NBFC. A final format has to be signed in favour of the Indian co-applicant in the application. Soon after, the Indian Embassy will put a seal of approval on it.
With the help of paisabazaar’s online tool ‘Home Loan EMI Calculator’ you can check your loan EMIs (Equated Monthly Instalments) by submitting information, such as desired loan amount, rate of interest and loan tenure. You can also use its slider for providing loan related information. By now it must have become much easier and simpler for you to fulfill your desire of purchasing home or property in the country where your heart lies.