Are you an NRI or person of Indian origin (PIO) searching for the best home loan options in India? You have come to the perfect place to seek your answers. Many myths surround the idea of NRIs getting home loans in India. Just like resident Indians, NRIs may invest in or get home loans for as many properties as they wish to.
Home loans can be used for the purposes of constructing a new house, purchasing a pre-existing house, adding an extension to a house, or purchasing a built-up plot.
In India, most commercial banks and financial institutions offer home loans to NRIs. The prime difference lies in the tenure, benefits, and interest rates of different banks. The rate of interest is usually relatively higher for NRIs.
The following are the most preferred home loan options for NRIs:
- STATE BANK OF INDIA (SBI)
As a government-owned bank, SBI offers a lower interest rate and negligible processing charges. It is one of the largest banking facilities in India. SBI also has the most flexible tenure for paying the loan back, making the whole procedure hassle-free.
If you have a good loan repayment record, you also become eligible for personal and educational loans upon opting for a home loan. SBI also has a unique provision to reduce the EMI (Equal Monthly Installments) when interest rates fall by 1%. Customers also receive a free global ATM and debit card.
Interest rate 7.95% onwards
Min. Age Criteria 18 years
Max. Age Criteria 60 years
Tenure Up to 30 years
Amount Up to 3 crores
Pre-payment penalty None
Processing Fee Up to 0.25% of the loan amount
Eligibility:
- Must have a valid passport
- Must have a visa relevant to their residence and employment status
- Must have a stable source of income – not less than $6,000 per annum
- Must have worked abroad for a minimum of two years
- HDFC BANK
- Must possess the required proof of identity
- Proof of income
- Property documents
HDFC Bank has made its mark by ensuring complete transparency in all transactions. HDFC makes it possible for NRIs to purchase the bungalow, flat, existing property, or co-operating housing property of their dreams. You may apply for a home loan individually or jointly.
Interest rate 8.00% onwards
Min. Age Criteria 18 years
Max. Age Criteria 65 years
Tenure Up to 20 years
Amount Up to 75 lakh
Pre-payment Floating Charges None
Pre-payment Fixed Charges 2% of the loan amount
Processing Fee Up to 1.25% of the loan amount or ₹3,000 (whichever is higher) + tax
Eligibility:
- ICICI BANK
- Must have a diploma or a graduation degree
- Must be employed for a minimum of 3 years
- Must have a stable source of income (Min. USD 42,000 per year)
- NOTE: The required personal and financial documents differ between salaried and self-employed individuals.
ICICI Bank is one of the most popular banking services among NRIs. Not only are NRIs offered home loans, but also other financial services like personal loans, credit and debit cards, and so on. Tracking the application is a seamless procedure with ICICI, with all facilities available online.
Along with an NRI Home Loan, customers also automatically obtain free personal accident insurance which lasts until the outstanding amount of the loan.
Interest rate 8.90% onwards
Min. Age Criteria 25 years
Max. Age Criteria 60 years
Tenure Up to 20 years
Pre-payment Floating Charges None
Pre-closure Charges 2% of the loan amount
Processing Fee 0.5% of the loan amount + tax
To get a home loan at ICICI Bank, you must have resided abroad for a minimum of one year if you’re salaried, and a maximum of three years if you’re self-employed.
Eligibility:
- AXIS BANK
- Must have at least 6 months’ work experience outside India
- Must have a total of at least 2 years work experience (including India)
- Must have a monthly income of $3,000 USD ($2,000 USD if you’re in the Merchant Navy)
- Must have a General Power of Attorney
- LIC Housing Finance → Interest rate 8.70% → Processing Fee as applicable from time to time
- DHFL Housing Finance → Interest rate 10.00% → Processing Fee up to ₹5,000+ document charges + applicable GST
- Bank of Baroda → Interest rate 8.10% → Processing Fee → 1% of the loan amount (Min. ₹7,500)
Axis Bank is the largest private-sector bank in India. NRI home loans are given special importance. At Axis Bank, you are offered attractively low-interest rates plus benefits.
At Axis Bank, you are free to choose the interest rate system; you may choose the fixed home loan rate or the floating interest rate. In case you already have an NRI home loan, Axis Bank lets you avail of a top-up loan that can be availed at the same interest rates as the pre-existing loan.
Interest rate 8.90% onwards
Min. Age Criteria 25 years
Max. Age Criteria 60 years
Tenure Up to 20 years
Prepayment Floating Charges None
Pre-closure Charges 2% of the loan amount + GST
Processing Fee 1% of loan amount + GST
Eligibility:
Always remember to shop around and use one bank’s quote as a negotiating instrument to get a preferred rate from another bank of your choice.
NOTE: The values given in this guide are indicative. Home loan eligibility criteria and interest rates for NRIs keep on changing, so please visit the official bank website to find the latest details at the time you wish to apply for the loan.
