Are You Eligible to Avail of NRI Home Loans?

Indians have relocated to foreign countries for various purposes. People work with multinational companies (MNCs), foreign government bodies, and other organizations. Such individuals who reside outside India for long periods but continue to be Indian citizens are known as Non-Resident Indians (NRIs).


If you reside outside the country for more than 182 days during the previous financial year, you are considered an NRI. If you want to buy a home in India but do not have the entire amount to make the purchase, you may apply for a loan offered by a Non-Banking Financial Company (NBFC) or bank.

Here are four conditions that determine your eligibility to avail of such a loan.

  1. Income

Generally, lenders consider your monthly income to determine the amount of loan available to you. It is recommended you check the minimum income eligibility criterion on the lender’s website before you opt for an online home loan application.

  1. Age limit

It is important to know the minimum age criteria at the time of applying for the loan. Furthermore, you must check the maximum age limit for loan repayment to determine the loan tenure. This information is also easily available on the lender’s website.

  1. Loan amount

Generally, financial institutions provide higher loan amounts to NRI applicants because of their better repayment capabilities. However, it is advisable to know the maximum loan amount you are able to avail of. This will help you set your budget while searching for a home. Moreover, you will also be able to determine the amount you will have to pay towards the down payment of the property.

  1. Rate of interest

Contrary to popular the belief, the interest rates on NRI home loans are competitive. Most lenders provide floating rate of interest to enable you to benefit from favorable movement in the market rates. The financial institutions often reduce the rate when market interest rates decrease and vice versa.

The amount you borrow is repaid in Equated Monthly Installments (EMIs) that are calculated on the basis of the loan amount, tenure, and income. You may also opt for an accelerated repayment schedule. This allows you to increase the EMI amount based on the surge in your income every year. An accelerated repayment schedule reduces the overall loan repayment tenure. This further helps you save money as your interest payout reduces.

The process to apply for an online home loan is quick and simple. Moreover, documents required for such loans are minimal. You must provide an income and address proof. Furthermore, a valid visa on stamped passport is required to apply for a loan. You will also have to submit your bank statement and an employment or income proof to avail of the loan.

Several lenders authorized by the National Housing Board (NHB) provide loans to NRIs for purchasing a home in India. It is recommended you compare the various lenders and their offerings to make a well-informed decision.