Buying a home is a big step for anyone and when it all goes in your favour, it gives you a huge sense of accomplishment. Moreover, property is an asset that helps you reap numerous financial benefits. The same holds good for Indians who reside outside their home country (Non-Resident Indians). However, high real estate prices in India makes it difficult for many Non-resident Indians (NRIs) to buy their dream home in India. If you are searching for the Top home loans for NRIs in India, we have compiled a list of home loan offerings from various banks that would help you.
But there are several banks in India including IOB, HDFC, and ICICI that provide various home loan schemes for NRIs and persons of Indian origin (PIO) in India. A home loan is a tool that benefits countless people. In fact, a home loan is a driving force behind the Indian residential real estate market. With easy monthly installments and the option to choose the repayment at your convenience, banks help make many NRIs’ dream of purchasing a home a reality. Here are some of the top home loans for NRIs in India.
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Why is taking a home loan a good idea?
A home loan is a loan that is extended to an individual to buy a house. It is a great form of financial assistance if you are short on cash, or are not in favour of liquidating your savings. Usually, the property is mortgaged with the bank or non-banking financial institution till the repayment of the loan. The lender will hold the title deed of the house till the housing loan amount is repaid in full along with the due interest in time. Home loans can not only be taken for the purchase of the property but also for the construction or renovation of the house.
Home loans for NRIs in India make it easy to buy or build their dream home by funding up to 80% of the cost of the property. However, you also need to consider several crucial aspects while applying for a home loan like the credibility of the lender, type of interest rate, and percentage of the interest rate. So, analyzing a few options will help you choose the best home loan for NRIs in India that suits your needs.
Read More: NRI tax budget 2021: Benefits for NRIs in the Union Budget 2021
Eligibility and requirements for NRIs Home loans in India
- Salaried and self-employed individuals are eligible for NRI home loans
- In terms of age limit, the criteria range between 18-70 years.
- The income, employment status, and educational qualifications play an important role in deciding your loan eligibility.
- Documents needed for processing NRI home loan include copies of passport, valid visa showing NRI status, PIO card, work permit, employment details, experience certificate, salary status, and bank statements of the NRE/NRO accounts held.
- Most banks and financial institutions insist on having a co-applicant who resides in India.
Note: The eligibility criteria and requirements for NRI home loans in India may vary depending upon the bank.
Top Home loans for NRIs in India
1. IOB NRI home loan
Features:
- The Repayment of loan installment, interest and other charges can also be made by close relatives of the NRI borrower resident in India, through their bank account.
- Loan tenure up to 15 years.
Eligibility:
- An NRI/ PIO holding Indian Passport or Passport of any other country except Pakistan and Bangladesh is eligible for the loan.
- Minimum monthly salary of the applicant should be equivalent of INR 10000
Rate of Interest:
- Starting from 8.5% interest rate.
Processing fee:
- 0.57% of the loan amount.
2. ICICI bank NRI home loan
Features:
- Loan repayment tenure of up to 30 years
- Doorstep service in India till disbursement
- Option to avail floating or fixed interest rate.
Eligibility:
- Age: Minimum 21 years and maximum 65 years of retirement age whichever is earlier than the time of maturity of the loan.
- If you’re a salaried individual, a minimum of 1 year of employment overseas is required. If you’re self-employed, you should have records for doing current business overseas for a minimum of 3 years.
- The minimum income requirement is 26000 USD for both GCC and other countries.
Rate of interest:
- Starting from 6.80% interest rate for 360 months
Processing fee:
- Processing fee of 0.50% of the loan amount plus applicable taxes.
Read More: How to Manage Home Loan and EMIs Effectively During the COVID Crisis?
3. HDFC bank NRI home loan
Features:
- Flexible repayment options
- Pocket-friendly EMI options.
Eligibility:
- Age: Minimum 18 years and maximum 65 years.
- Employment and salary proofs.
Rate of Interest:
- Starting from 6.8% interest rate.
Processing fee:
- Up to 1.25% of the loan amount or Rs. 3000.
4. Axis bank NRI home loan
Features:
- Flexible repayment options
- Varying levels of down-payment depending on the loan amount.
Eligibility:
- Age: Minimum 24 years and maximum 60 years or retirement age, whichever is earlier.
- Minimum overseas work experience of six months with total work experience of 2 years.
- Minimum Income: 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:
- For floating-rate loans, the benchmark rate is the RBI Repo Rate (Currently 4%).
- For Loans on Marginal Cost based Lending Rate, the Marginal Cost based lending rate is 7.35%.
- For Loans on Base rate/MRR/BPLR, The Bank’s current base rate is – 8.40%.
Processing fee:
- Up to 1% of the loan amount.
5. Bank of Baroda
Features:
- Free credit card to all home loan borrowers.
- Risk-based pricing.
- Free accidental insurance with every home loan.
Eligibility:
- Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs) holding a foreign passport or Overseas Citizens of India (OCI).
Rate of Interest:
- Rate of interest: 1-year MCLR + 1% currently 8.55% onwards.
Processing fee:
- Up to 0.50% with a minimum of Rs. 7,500 and a Maximum of Rs. 20,000
Read More: Relief to NRIs from the Problem of Double Taxation: Union Budget 2021
Do not hasten and settle for a lender who offers the lowest interest rate, take into account, all the terms and conditions along with the reputation of the lender. Most importantly choose the loan amount wisely by calculating your repayment capacity and other possible expenditures going forward. Even if you have sufficient funds to buy a house, a home loan offers you a financial cushion and an opportunity to let your funds grow. There is a lot of information on top home loans for NRI in India floating around. However, those who are unfamiliar with the banking process are advised to consult an expert. Thus, these are the top home loans for NRIs in India.