When it comes to buying a house in India, it is quite easy for Nris to buy a property or a house. They are also eligible for NRI home loans which are easily available.

Various financial institutions offer home loans for NRIs to avail. Even the government has come forward in helping the NRIs. The Government of India has come with the ‘Griha Shobha Scheme’, especially for NRIs.

To avail NRI Home Loans click here 

While availing the loan there are a few things which you need to keep in mind. For example, as an NRI you are eligible to a maximum of 1 crore or 85% of the total property value. The rate of interest on home loans for NRIs varies from 11.25% to 14.25% per annum. When it comes to the processing fee, almost all lenders charge it, which usually ranges around 1% to 2% of the total loan amount.

Talking about loan eligibility, it depends on the repayment capacity of an individual. When it comes to calculating the repayment capacity, it is based on a variety of factors such as monthly and annual income, the source of income, savings and credit history, work experience, age, qualifications, the number of dependents and other sources of income including spouse’s income, assets, and liabilities.

Another aspect which is taken into consideration is whether the individual will be continuing with the same occupation and alternate employment prospects once/if they come back to India. Remember one thing, the lending institution will make sure that it does not face any loss while giving a loan to you.

As far as the duration of loan repayment is concerned, it is generally around three to six years. Loan repayments as in any other case, are made in Equated Monthly Installments (EMI). EMIs for NRIs get deducted through post-dated cheques from NRE/NRNR account which is held by the borrower in India.

Documents Needed for NRI home loans

Property related documents

Employment related documents

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