NRI Home Loans are available with lowest interest rate starting from 6.85% p.a. You can take an NRI housing loan for a wide range of housing needs which includes purchase of flat/house/plot, construction and towards costs of renovating/repair of an existing home.

NRI Home Loan Interest Rate Apr 2021

Banks Interest Rates
SBI 6.90% – 7.50% p.a.
Bank of Baroda 6.85% – 7.20% p.a.
PNB Housing Finance Limited 7.50% – 9.70% p.a.
Axis Bank 6.90% – 8.55% p.a.
HDFC Ltd. 6.90% – 8.00% p.a.
Canara Bank 6.90% – 8.90% p.a.
Federal Bank 7.90% – 8.05% p.a.
Bank of India Star Pravasi Home Loan 6.90% onwards
Indian Overseas Bank 7.05% – 7.30% p.a.
Indiabulls 8.99% p.a.
ICICI NRI Home loan 6.90% – 8.05% p.a.
  1. BOI Star Pravasi Home Loan:
    • Loans available for both salaried and self-employed individuals
    • Flexible repayment option of up to 30 years
    • High margin of financing of up to Rs.5 crore
    • Attractive rate of interest
    Interest Rate 6.90% p.a. onwards
    Loan Amount Rs.30 lakh
    Tenure 25 years
    Foreclosure/Prepayment Charges Nil
    Processing Fee 0.25%
    EMI Rs.21,012
  2. SBI NRI Home Loan
    • Low interest rates
    • Loans available for both salaried and self-employed individuals
    • No hidden charges
    • No prepayment penalties
    • Repayment tenure of up to 30 years
    • Processing fee waived till May 31
    Interest Rate 6.90% to 7.50% p.a.
    Loan Amount Rs.30 lakh
    Tenure 25 years
    Foreclosure/Prepayment Charges Nil
    Processing Fee 0.35%
    EMI Rs.21,012
  3. HDFC NRI Home Loan
    • Minimal paperwork
    • Home Loan Services available in the country you reside
    • Property Search Advisory Services available
    Interest Rate Starts from 6.90% p.a.
    Loan Amount Rs.30 lakh
    Tenure 25 years
    Foreclosure/Prepayment Charges 2%
    Processing Fee 1.25%
    EMI Rs.21,012
  4. Axis Bank NRI Home Loan
    • Competitive interest rates
    • Minimal processing fees
    • Repayment tenure of up to 25 years
    • Minimal documentation required
    Interest Rate Starts from 6.90% p.a.
    Loan Amount Rs.30 lakh
    Tenure 25 years
    Foreclosure/Prepayment Charges Nil (floating rate loan) 2% (fixed rate loan)
    Processing Fee 1%
    EMI Rs.21,012
  5. PNB Housing Finance Limited NRI Home Loan
    • Attractive interest rates
    • Multiple repayment options
    • Hassle-free documentation and quick disbursal
    • Robust service delivery model
    Interest Rate 7.50% p.a. onwards
    Loan Amount Rs.30 lakh
    Tenure 25 years
    Foreclosure/Prepayment Charges
    Processing Fee
    EMI Rs.26,734
  6. ICICI NRI Home loan
    • Repayment tenure of up to 30 years
    • Specifically designed for NRIs looking to purchase or construct a house/property
    • Minimum income of 26,000 USD for Merchant Navy employees and 42,000 USD and 84,000 AED for others
    Interest Rate 6.90% p.a. onwards
    Loan Amount Rs.5 crore
    Tenure 30 years
    Foreclosure/Prepayment Charges 0% – 4%
    Processing Fee 0.50% – 2%
    EMI Rs.19,758
  7. IOB NRI Home Loan
    • Competitive interest rates
    • Loans available for construction, purchase, and renovation
    • Flexible repayment tenures
    • High margin of financing
    • Hassle-free documentation process
    Interest Rate 7.05% p.a. onwards
    Loan Amount Rs.15 lakh
    Tenure 15 years
    Foreclosure/Prepayment Charges 0% – 2%
    Processing Fee 0.50%
    EMI Rs.13,524

Other Fees and Charges for NRI’s

Processing Fee Up to 2% of the loan amount
Foreclosure Charges Up to 4% of the total outstanding
Loan Conversion Fees As per the bank’s discretion
Cheque Return Charges Up to Rs.500 per instance
Duplicate Statement Issuance Charges Up to Rs.250 per instance
Title Documents Photocopy Issuance Charges Up to Rs.250 per instance
Duplicate NOC Issuance Charges Up to Rs.500 per instance
Credit Report Issuance Charges Up to Rs.50 per instance

NRI Home Loan Eligibility

Age 18 to 70 years
Type of Employment Salaried or Self-employed
Nationality NRI

NRI Home Loan Eligibility Calculator

Your home loan eligibility depends on various factors like your monthly income, current age, credit score, fixed monthly financial obligations, credit history, retirement age, etc. NRI Home Loan Eligibility Calculator helps you figure out how much loan you can get from a bank based on the mentioned parameters. The online tool is easy to use and hassle-free. All you need to do is enter the details as required. With just one click you will get to know how much loan you are eligible for.

NRI Home Loan Documents Required For salaried applicants

Identity proof Valid passport or Visa card
Income proof Latest 3 months’ salary slips
Last 6 months’ bank statements
Latest Form 16 and IT returns
Appointment or contract letter
POA details
6 months’ Domestic NRE/NRO account statements
Property-related papers Copy of the buyer agreement and receipt of the payment made to the builder (for new homes)
Title deeds, receipt of the payment made to the builder, and copy of the agreement to sell (for resale homes)
Title deeds of the plot, proof of no encumbrances on the property, and construction estimate as given by the architect (for home construction)
Other documents Employment details
Proof of own contribution
Last 6 month’s bank statement to show if there are any other loans
Your and co-applicant’s passport-size photo with signature
Processing fee cheque towards the bank

NRI Home Loan Documents Required For self-employed applicants

Identity proof Aadhar card, voter ID, passport, or valid Visa copy
Income proof Income Tax Returns along with details of your businesses’ and your income for the last 3 years
Balance sheet and profit and loss account statements for the last 3 years
Last 6 years’ current account statements of your business and your savings account statements
Property-related papers Copy of the buyer agreement and receipt of the payment made to the builder (for new homes)
Title deeds, receipt of the payment made to the builder, and copy of the agreement to sell (for resale homes)
Title deeds of the plot, proof of no encumbrances on the property, and construction estimate as given by the architect (for home construction)
Other documents Business profile
Form 26 AS (latest)
Proof of own contribution
Partnership deed (if applicable)
Details of your and your businesses’ ongoing loans (if any)
Your and co-applicant’s passport-size photo with signature
List of Directors and Shareholders of the company with shareholding details

Tax Benefits of NRI Home Loans

Under Section 80C of the Income Tax Act, 1961, NRIs are eligible for tax benefits on home loans if they file income tax returns in India. This tax deduction is for the interest component of the home loan and the principal component.

If your home for which you have taken the home loan for is lying vacant in India, you can avail the following tax benefits on your home loan:

Interest component: Deduction of up to Rs.2 lakh on the interest amount repayments

Principal component: Deduction of up to Rs.1.5 lakh on the principal amount repayments

If the home has been rented out, then the entire interest payable component can be claimed as a tax deduction on your home loan.

FAQ’s

  1. Can I make a joint application for a home loan?Of course, you can. Actually, it is always recommended to make a joint application. It will help reduce the burden of interest on your shoulders. Also, some banks offer concession on the interest rate for women applicants.
  2. How can I repay the loan?You can repay the loan through normal banking channels like NRE and NRO accounts.
  3. I have been living outside India for the last 6 months. Can I take an NRI home loan?No, you have to stay more than a year and show your overseas employment or business details for the same to get the loan.
  4. How much of financing can I get?You can get financing ranging from 75% to 90% of the total property cost with NRI home financing plans. However, the final amount offered is at the sole discretion of the bank and will be based on your annual income, type of property you are planning to buy, and other such factors.
  5. What’s the maximum tenure I can get?The loan tenure may differ from bank to bank. However, most banks offer loans for a tenure of up to 30 years.
  6. What do banks consider while sanctioning a home loan?

    Banks consider the following:

    • Your annual income
    • Number of years you have been staying overseas
    • Your business details, including the number of years it has been operational overseas
    • Your credit score
    • The type of property you are planning to purchase or construct
    • Status of existing loans
    • The co-applicant’s credit score and other details

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