How to Get a Home Loan for an NRI in India?


Home Loan for an NRI in India

Buying a home in India is a dream for many Non-resident Indians or NRIs. And, today, you can easily make the dream come by applying for an NRI home loan. Read on to know more about how to get an NRI home loan in India.

It is a known fact that many lenders in India offer home loans at a competitive interest rate. But, what about home loans for non-resident India or NRIs. Can NRIs get a home loan in India and purchase their dream home? Yes, the NRIs can easily get a home loan in India. Most financial institutions cater to the NRI home loan needs and have special home loan offers for the non-resident Indians. So, if you are an NRI and aspire to buy a home in your native land, you can easily get the necessary funds provided you meet the lender’s specific requirements.

If you are a non-resident Indian and wish to apply for a home loan in India, you must be aware of the different aspects of an NRI home loan.


One of the critical factors of getting your loan approved is to meet the lender-specific eligibility requirements. Remember, the eligibility for NRI home loan is different from loans for Indian citizens. Some of the common requirements that most lenders have, include:

  • You must be a salaried employee or a self-employed professional with a regular income source.
  • You can avail a home loan to buy a new or an under-construction home.
  • You can apply for an NRI home loan individually or opt for a joint home loan. You can apply with one or more than one co-applicant. However, the co-applicant must be an NRI too.

Interest rate

Just like the eligibility requirement, the interest rate for NRI home loan is different from the home loan for Indian citizens. But, as an NRI, you have the flexibility to either avail a fixed rate home loan or flexible rate loan. In the fixed rate, the interest is fixed at the time of the applying the loan and it remains the same throughout the loan tenure.

But, many experts recommend choosing a flexible interest home loan and the interest payment is much lower in the long-run as compared to fixed interest rate loans. Today, you can avail NRI home loan at an interest as low as 8% for up to 20 years.

Maximum loan amount

When you apply for a NRI home loan, you must be aware of the maximum amount you can avail. Generally, most lenders provide 75% to 90% of the property’s value as a home loan for NRIs. You must fund the remaining amount from your pocket. This amount is called down payment and it must be paid upfront as it is an integral part of the home loan application process.

Documents required

When you apply for a NRI home loan, you must comply with the documentation process. Although the document required vary from lender to lender, some of the common documents that every lender require, include –

  • Proof of identity
  • Proof of residence both in the country of current residence and India
  • Income proof
  • Property-related papers
  • Passport-size photographs
  • Copy of passport, visa and work permit
  • A cheque to pay the processing fee

Tax benefits

Most NRIs who apply for a home loan in India have a common concern, i.e., are they eligible to get tax benefits? The answer is Yes provided you file your tax returns in India. The principal amount you repay is eligible for tax benefit under Section 80C of the Indian Income Tax Act. The maximum deduction you can get is Rs. 1.5 lakhs in a financial year. Also, you are eligible to get tax benefits up to Rs. 2 lakhs on repayment of home loan interest.

Final Word

Now that you are aware of the different aspects of NRI home loan, you can make a more informed borrowing decision. Make sure to read the terms and conditions before you sign the loan documents to avoid any legal issues.

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