Growing real estate prospects in India have resulted in a spike in property purchases by non-residents and persons of Indian origin (POA) in the country. India’s banking industry has been instrumental in supporting this growth by providing easy housing finance to NRIs. In this guide, we learn about NRI home loans in India in 2024.
NRI home loan: Eligibility
- Minimum age: 18 years
- Maximum age: 60 years
- Loan tenure: Up to 30 years
- Loan amount: Depends on the bank
NRI home loan: Purposes for which loans are issued
NRIs can get home loans in India for home purchase, land purchase, home construction and home renovation.
Documents for NRI home loan
A duly signed application form with a passport-size photograph must be submitted if the loan is applied for in physical mode.
KYC documents
- Identity Proof: Valid Passport
- NRI status proof: Valid work visa/residence permit/permanent citizen card, OCI card/OCI declaration
- Overseas address proof
- Indian address proof (Required only if selected as mailing/communication address)
- PAN card or Form 60
Income proof
- Latest 2 months’ salary slips or salary certificate
- Latest 3 months’ overseas bank statement with salary credit
Business proof
- Last 3 years’ audited/CA certified/CPA compiled/reviewed P&L accounts & balance sheet (along with schedule)
- Last 3 years’ IT returns and income computation
- Copy of incorporation of business (Equivalent to memorandum of association and article of association)
- Last 6 months’ overseas operative bank statements
- Incorporation Certificate/Company registration certificate
- Office address proof
- List of directors and shareholding pattern
Overseas Credit Bureau Report
Must reflect credit score and repayment history of overseas loans and credit card not older than 45 days.
Additional document for balance transfer
Last 1 year’s bank statement through which EMI is debited or statement of loan account.
Property documents
- Permission for construction (if applicable)
- Registered agreement for sale/allotment letter/stamped agreement for sale
- Occupancy certificate (in case of ready-to-move property)
- Share certificate
- Maintenance bill
- Electricity bill
- Property tax receipt
- Approved plan
- Registered development agreement of the builder
- Conveyance deed (for new property)
- Payment receipts or bank A/C statement showing all the payments made to builder/seller
Note: This is not an exhaustive list. Banks may ask for additional documents.
See also: Tax implication on NRIs property sale in India
Leading banks offering NRI home loans in India
- State Bank of India
- HDFC
- ICICI Bank
- Axis Bank
- LIC Housing Finance
- HSBC
- Canara Bank
- Indian Bank
- Bank of Baroda
- South Indian Bank
- Yes Bank
- Kotak Mahindra Bank
- Indiabulls Home Loan
- Standard Chartered
- Indian Overseas Bank
Interest rates for NRI loans
All banks in India charge the same interest on home loans, irrespective of NRIs, PIOs or resident Indians. Banks assess the creditworthiness of a borrower based on their credit score. While those with a credit score of 700 and more are offered the best rates, charges increase as the score decreases.
Salaried applicants get the best rates while a premium is charged from professionals and businesspersons due to the risk involved.
NRI home loan interest rate of leading banks in India in 2024
| Bank | Interest rate per annum |
| Kotak Mahindra Bank | 8.70% onwards |
| Union Bank of India | 8.35% onwards |
| Bank of Baroda | 8.40% onwards |
| Central Bank of India | 8.50% onwards |
| Bank of India | 8.30% onwards |
| State Bank of India | 8.60% onwards |
| HDFC | 8.50% onwards |
| LIC Housing Finance | 8.85% onwards |
| Axis Bank | 8.70% onwards |
| Canara Bank | 8.55% onwards |
| Punjab and Sind Bank | 8.55% onwards |
| IDFC First Bank | 8.75% onwards |
| Bank of Maharashtra | 8.35% onwards |
| Indian Overseas Bank | 8.85% onwards |
| Punjab National Bank | 9.40% onwards |
| UCO Bank | 8.45% onwards |
| IDBI Bank | 8.45% onwards |
| HSBC Bank | 8.45% onwards |
| Karur Vysya Bank | 8.95% onwards |
| South Indian Bank | 8.50% onwards |
| PNB Housing Finance Limited | 8.50% onwards |
| Standard Chartered Bank | 8.65% onwards |
| Indiabulls | 9.30% onwards |
Tax benefits on NRI home loans
Just like resident Indians, NRIs can claim tax deductions against home loan principal and interest payments. While money paid as interest can be claimed under Section 80C of the income tax law, a deduction can be claimed under Section 24B for interest payment. Under Section 80C, Rs 1.5 lakh tax deduction can be claimed annually. Under Section 24B, Rs 2 lakh tax deduction can be claimed annually.
FAQs
Can an NRI apply for a home loan in India?
Yes, an NRI can apply for home loans in India.
Can a person of Indian origin apply for a home loan in India?
Yes, a person of Indian origin can apply for home loans in India.
Does an NRI need to be present in India to apply for a home loan?
An NRI/OCI borrower is required to be physically present in India if they are applying through an offline mode. They will have to submit a signed physical application form along with self-attested KYC and income documents.
Can an NRI apply for home loans online without being present in India?
Yes, an NRI can apply for home loans online. At ICICI Bank, for instance, NRI borrowers can use the Express Home Loan (EHL) platform to apply for home loans.
Can a resident Indian and an NRI be co-applicants for an NRI mortgage loan?
Yes, a resident Indian and an NRI can be co-applicants for an NRI mortgage loan.
What is the maximum home loan tenure for NRI borrowers?
The maximum tenure for NRI borrowers ranges between 20-30 years.
I am an NRI customer. Do I need to submit residential address proof in India?
If you are an NRI, Indian address proof is mandatory only if you provide an Indian address as the mailing address. The following documents are accepted as Indian address proof: (1) Valid passport (2) Aadhaar card (3) Valid driving licence (4) Voter ID
Which account is used for NRI home loan repayment?
The borrower’s NRE/NRO savings account is linked to the loan account for repayment.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
sunita.mishra@proptiger.com
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