Introduction

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. 

What are the eligibility and other requirements for an NRI home loan?

  • It is good to know some important eligibility and other criteria required to avail of an NRI home loan.  
  • The salaried and self-employed individuals are allowed NRI home loans 
  • The age limit criteria range 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 a contract, experience certificate, salary status and bank statements of the NRE/NRO accounts held are needed.  
  • Repayment is possible only through a 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 the best deals on NRI home loans.  

  1. SBI NRI HOME LOANS

Important Features

  • No Penalty on Prepayment 
  • Interest charges on Daily Reducing Balance 
  • Repayment tenure up to 30 years 
  • The facility of Home Loan Available as Overdraft 
  • Interest Concession for Women Borrowers

Rate of Interest and other charges

  • 7.95% onwards

Processing and Other Fee  

The processing fees charged on availing these loans is at 0.35% of the loan amount which is at least Rs. 2000 and can go up to a maximum of Rs. 10000.Fee Charged before sanctioning of loan:

  • Advocate's fee for property search and the title investigation report. 
  • Valuer's fee for valuation report. 
  • Fee charged Post-sanction: 
  • Stamp duty payable for Loan agreement & mortgage. 
  • Property insurance premium. 
  • CERSAI Registration Fee of Rs 50 + GST up to Rs 5 Lakh limit, and Rs 100 + GST for limits above Rs 5 Lakh

Taxes are charged on the amounts as applicable

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
  • The maximum loan amount is Rs. 3 crores
  1. AXIS BANK NRI HOME LOANS 

Important Features

  • Multiple options available for repayment  
  • Various options of tenure are possible 
  • Varying levels of down-payment depending on the loan amount

Eligibility

  • A Non-Resident Indian (NRI), Person of Indian origin (PIO) or Overseas Citizen of India (OCI) are eligible for NRI Home Loans, however, Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan are not considered for NRI home loan. 
  • Age - Minimum age of the applicant should be 24 years. The maximum age limit is 60 years or retirement age (whichever is earlier) at the time of loan maturity. 
  • An Applicant should have a minimum overseas work experience of six months with a total work experience of 2 years

Minimum Income Criteria

  • For GCC Countries - AED 5000 - p.m. (or equivalent) 
  • Other Countries & USA - USD 3000 -p.m. (or equivalent) 
  • For Merchant Navy - USD 2000 p.m. for 9 months

Rate of Interest and Other Fee

  • The interest rate is benchmarked to the MCLR (Marginal Cost of Funds based Lending Rate). 
  • For salaried borrowers - 
    • 7.75% - Up to Rs. 30 lakhs
    • 9.05% - Up to Rs. 75 lakhs
    • 9.10% - More Than Rs. 75 lakhs
  • For Self-employed borrowers 
    • 8.95% - Up to Rs. 30 lakhs
    • 9.10% - Up to Rs. 75 lakhs
    • 9.15% - More Than Rs. 75 lakhs

Processing and other charges

  • Loan Processing Charges: Up to 1% of the loan amount subject to a minimum of Rs.10,000/- 
  • Prepayment Charges on Floating Rate Loan: Nil 
  • Prepayment Charges on Fixed-rate loan: 2% +GST  
  • Charges for stamp duty on equitable mortgage: Stamp duty on Equitable Mortgage charges, if applicable, to be paid by the customer separately
  1. ICICI Bank NRI Home Loan 

Important Features

  • Attractive interest rates on a monthly reducing basis 
  • Choice of fixed or floating interest rates 
  • Part–prepayment facility for zero fees 
  • Free personal accident insurance to the extent of loan outstanding 
  • Doorstep service in India till disbursement

Eligibility 

Minimum 25 years old and the maximum age limit being 60 years or retirement age (whichever is earlier) at the time of loan maturity. 

Residential status

  • A salaried applicant should have been abroad for a minimum period of 1 year. 
  • If the self-employed applicant should have been abroad for a minimum period of 3 years. 
  • Tenure & Minimum Qualification: 
  • For Salaried borrowers, there are minimum qualifications necessary that often vary with tenures. 
  • For loan tenure up to 10 years, the minimum qualification needs to be Graduate/ Diploma.  
  • For NRIs residing in the Middle East, the minimum qualification is Post Graduate/ professional degree if the loan tenure is between 11 and 15 years 
  • For NRIs residing in the USA and all other countries, the minimum qualification is Graduate/ Diploma with a minimum of 3 years of employment abroad or professional degree with min 1 year of employment abroad, if the loan tenure is between 11 and 15 years 
  • For Self-Employed, SSC or equivalent education is necessary 
  • Maximum tenure: Maximum tenure allowed for Home Loan and Home Improvement Loan is 20 yrs, whereas maximum tenure for Land loan and Home equity loan-Residential is 10 yrs. No Office Premises Loan is allowed. 
  • Income Criteria  
  • For the USA and other countries: A minimum income of USD 42000 for the salaried, self-employed and those with the merchant navy 
  • For GCC Countries: A minimum income of AED 84000 for the salaried, AED 48,000 for the self-employed and AED 42000 for those with Merchant Navy

Rate of Interest and Other Fee

  • Rate of interest - 8.90% onwards

Processing Fee and Other Charges

  • Processing Fee: 0.5% of the loan amount + applicable Service Tax & Surcharge 
  • Prepayment Charges: 2% of the outstanding amount 
  • Loan Type switching fee: 1.75% of the outstanding loan amount
  1. Citibank NRI Home Loan 

Important Features

  • Home Loans of up to Rs. 5 crores 
  • Loans up to 80% of your property value 
  • Online and 24 X 7 support available 
  • Attractive interest rates

Eligibility

  • All applicants will need to nominate a co-applicant in India. Citibank reserves the right to contact the co-applicant by phone or in-person to confirm contact ability. The co-applicant will remain the guarantor on the loan and will be responsible for meeting the terms of the loan in case of default. 
  • Loan payments need to be made from the customers Citibank Rupee NRE/NRO account only. 
  • The tenure of the loan is limited to the term of the loan being completed before the applicant reaches the age of 65 years. 
  • Loans from Rs. 20 lakhs to Rs. 5 crores and up to 80% of property value for loans up to Rs. 75 Lakhs and 75% of property value for loans above Rs. 80 Lakhs

Rate of Interest   

  • For salaried applicants: 3Months MCLR* + 0.8% p.a to 3 months MCLR +1.3% 
  • For Self Employed applicants: 3Months MCLR* + 0.9% p.a to 3 months MCLR +1.55% 
  • *3 months MCLR as of Oct 2018 stood at 8.1%
  1. 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 the 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 Instalments (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 a 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 a minimum gross annual income equivalent to Rs. 5 Lakhs per annum.

The 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

Rate of Interest and Other Fee

  • Rate of interest: Salaried
    • 1-year MCLR to 1-year MCLR + 1% p.a.
    • Up to 1-year MCLR to 1-year MCLR + 1% p.a. + 0.25%
  • Rate of interest: Self-employed
    • 1-year MCLR to 1-year MCLR + 1% p.a.
    • Up to 1-year MCLR to 1-year MCLR + 1% p.a. + 0.25%
  • Processing Charges:  Up to 0.50% with a minimum of Rs. 7,500 and a Maximum of Rs. 20,000

FAQs

  1. Which bank is best for NRI home loans in India?

Here are the banks that offer some of the best deals on NRI home loans in India:

  1. SBI
  2. Axis Bank
  3. Bank of Baroda
  4. Citibank
  5. ICICI
  1. Can NRI get a home loan in India?

An NRI home loan can be availed by anyone who falls under the definition of NRI. It can be used for the purchase, construction, renovation of a new or existing house. The home loans can also be taken to purchase a plot of land for residential purpose.

  1. Is an NRI eligible for a home loan in India?

Many banks in India allow NRIs to take a home loan for buying, rebuilding or renovating a home. 

  1. What is the NRI home loan rate?

The lowest ongoing NRI Home Loan interest rates start from 6.85% p.a. 

  1. Can NRI buy property in India?

An NRI can buy a property, either as a single owner or jointly, in India. He/she can also avail loan facility for the purchase of the property.