Home Loans for NRI’s

Real estate in India is a perennial industry. Residential real estate for Non-Resident Indians (NRI), particularly, has a glorious future. Whether it’s a dream home or a lucrative investment opportunity, India has countless opportunities for you. And what’s even better? The hassle-free availability of home loans for the NRIs to benefit.

What is the procedure?

Applying for a home loan is simple in India. All you need to do is submit an NRI home loan application form to the bank. Indian banks have become widespread and increased their footfall overseas, too. You can submit your application directly to the bank or use an online application. There is an alternative method where you can also apply at a home branch by appointing someone as a Power of Attorney (POA) holder on your behalf. That way, you won’t have to come or wait till your next trip to India. However, if you issue the POA while you are not present in India, it will require a signature. This need to be performed in front of an embassy official for legitimate consideration. Once you submit the application form, the bank will take you through various terms and conditions and applicable interest rates.

Interest Rates and Conditions

RBI guidelines state: You are an eligible NRI only if you are employed or carrying out business outside India under the circumstances showing an uncertain duration of stay abroad. Thus, if you fall under this category, you can apply for NRI home loans in India. You’ll also have to present documents validating your income, employment, and educational qualifications.

Banks offer 70% – 90% of the property value as a loan, based on your qualifications and income, at an interest rate of 0.25% – 0.50%. The repayment has to be in Indian rupees through Non-resident External or Non-resident Ordinary accounts only.

How does this benefit you?

Banks are now offering home loans to NRIs at attractive interest rates. So, taking a home loan is always better than personal financing. Instead of engaging your savings in the purchase, you can invest that money elsewhere for better returns and manage the property-related expenses with the loan. Home loans for NRIs also have tax benefits, just like the home loans for Indian residents.

So, when you take a home loan, you get tax benefits, security, and freedom to invest your money elsewhere and earn profits.

Key features

Here are some of the most attractive features of Home loans for NRIs that will aid you in selection-
  • You can get loans for constructing a house, purchase a developed property, or renovating an existing property as well.
  • The process of application is simple, and the approvals are quick.
  • There is a flexible online process with precise application tracking facilities
  • Flexible prepayment facility with minimal fees
  • Better finance management
  • Tax benefits and money savings


It is evident from the above points, home loans for NRIs have become a cakewalk in recent times. The entire process requires minimal paperwork, and you may reap multiple benefits in return.

So, should you get a home loan to buy your dream house?

Well, if you are an eligible NRI, the answer is a loud, resounding yes. Getting a home loan is the best choice you can make while purchasing residential real estate property in India.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.