Home loans for NRIs: Your full guide

As an NRI buying a new home for your family in India or renovating your family’s home can feel like fulfilling a life goal. Learn more about home loans for NRIs and how they work at India’s popular banks.

To start, here are some Indian banks that offer NRI-specific home loans. This list is not exhaustive and in no particular order:

• Axis Bank
• ICICI Bank
• State Bank of India
• HDFC Bank
• Bank of Baroda
• Federal Bank
• Bank of India
• PNB

And to see how each of the banks compares to each other, here is a handy table comparing each bank’s home loans for NRIs:

Provider	Eligibility	Interest Rate (p.a.)	EMI	Fees	Loan amount	Loan tenure
Axis Bank	Must be an NRI, PIO or OCI and must meet income requirements Must be over 24 years old	6.75-12%	Interest and principal calculated monthly Axis Bank EMI calculator	Up to 1% of the loan amount with a cap at ₹10,000	₹3 -₹75+ lakhs	1-25 years
ICICI	Minimum work experience of 1 year for salaried employees Income requirement needs to be met	Starts from 6.70%	Interest and principal calculated monthly	0.50% of the loan amount	₹30-₹50 lakhs	Up to 30 years
State Bank of India	Applicant age between 18-60 years old	Starts from 6.70%	Interest and principal calculated monthly SBI EMI Calculator	0.40% of the loan amount with a minimum of ₹10,000 and a max of ₹30,000	₹30-₹75+ lakhs	Up to 30 years
HDFC Bank	Must be 21-65 years old Must meet income requirements	Starts from 6.70%	Flexible EMI available HDFC NRI EMI Calculator	Upto 1.25% of the loan amount	More than ₹75+ lakhs	Up to 30 years
Bank of Baroda	Must be 21-70 years old	Starts from 6.75%	Interest and principal calculated monthly Bank of Baroda EMI Calculator	0.50% of loan amount	Up to ₹10 crores	Up to 30 years
Federal Bank	Maximum age at end of tenure is 55 years old Resident Indian co-applicant required for PIO/OCIs	Starts from 7.65%	Easy EMI available Federal Bank EMI Calculator	0.50% of the loan amount with a minimum of 10,000 and a max. of .45,000	Up to 1500 lakhs	Up to 20 years
Bank of India	Available to salaried, self-employed and professionals	Starts from 6.85%	Can be customized EMI depending on repayment ability	0.25 % of loan amount with a minimum of ₹1,500 and a max. of ₹20,000	Up to ₹500 lakhs	Up to 30 years
PNB	Maximum age at end of tenure is 70 years old Working abroad for at least 1 year	Starts from 6.75%	Interest and principal calculated monthly PNB Bank EMI Calculator	0.50% of the loan amount	More than ₹75+ lakhs	Up to 30 years

🔖 Read more: Personal loans for NRIs

How to choose the right home loan for NRIs

Choosing the right home loan can help you secure a loan faster, save money, and provide ease when managing your loan. Here are a few factors to consider when trying to find an NRI home loan that works for you:

Loan amount and EMI

In most cases, your loan amount is relative to the cost of the property you are looking to purchase, or construction costs for the renovations. It is taken as a percentage of the cost and can range from 70-90% depending on the amount. You will have to provide the estimated costs and supporting documents when submitting your loan application.

Most banks offer an EMI option to allow borrowers to make equal payments across the tenure of the loan. It is recommended to try out different scenarios for the loan amount, interest rates, and tenure on the EMI calculators available on the bank websites.

Eligibility

First, ensure the loan you are going for is specifically for Non-Resident Indians so that your income and supporting documents can qualify.

Next, make sure you meet the income requirements in order to apply for a loan. Additionally, check which scenarios require a joint Indian Resident co-applicant. Keep in mind that a spouse with earned income can help to make your application stronger if you apply for it jointly.

Repayment

The first thing to look at is your interest rate on the loan. A lower interest rate is better, but make sure you look at the full picture.

Banks have additional charges and fees that can add up, even if they are offering a low-interest rate. Also, chat with your bank representative on different ways to lower your interest rate without fees or tenure increasing, such as adding a co-applicant.

Consider if you can get a flexible repayment plan or if there are fees for early repayment. Flexibility can provide you ease and help weather the ups and downs of life. But if you prefer having a flat amount you know from the start for the tenure of the loan, then that stability can feel good too.

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Insurance

Home insurance can be an additional factor to consider. Many Indian banks offer optional home insurance coverage with an NRI home loan.

Axis Bank NRI home loan

Easy to manage app Customized tenures from 1-25 years Specific loans available for self-employed NRIs

Axis Bank’s NRI home loans are tailored to your needs and provide a smooth process to easily apply for a loan online. But there is a monthly income requirement for applicants, based on where you are located, and a minimum work experience is required.¹

ICICI Bank NRI home loan

For a new home or home renovation Indian co-applicant is not required No penalty for prepayment

ICICI provides an NRI home loan that can be for a new home, home improvement, or a land loan. Each has differing tenures and is available to salaried NRIs or self-employed NRIs, as long as the work experience and income requirements are met.²

State Bank of India NRI home loan

Available to PIO and OCI as well Applicant’s age must be less than 60 years old No penalty for prepayment

SBI offers home loans to NRIs for purchasing a home or investment property. SBI can have some of the lowest fees out there and they also offer a discounted interest rate for women applicants.³

HDFC Bank NRI home loan

For a new home or home improvement Network of experts to help in the process Flexible repayment with the choice between a fixed or floating interest rate

HDFC is a popular bank for NRIs and offers a home loan for renovating or purchasing a self or family occupied home. There are flexible repayment options and automated EMI payments available, but there are fees for early repayment.⁴

Bank of Baroda NRI home loan

For a plot of land, home, or renovations Loan amount depends on the applicant's location in India Different NRI home loans are available

Bank of Baroda offers an array of home loans for NRIs to choose from and has a benefit of a free credit card for a year if you take a loan of ₹2 lakhs or more. Bank of Baroda also does not require a co-applicant and you can apply online.⁵

Federal Bank NRI home loan

For building a home, improvements, or purchasing land Minimum monthly income requirement of ₹50,000 Partial or full prepayment available

Federal Bank offers an NRI home loan that can be for constructing a new home, purchasing land, or beautifying an existing home. Federal Bank loans can cover up to 85% of the cost and an easy EMI can make payments easier.⁶

Bank of India NRI home loan

Loan amount depends on purpose and usage It may require an in-person branch application No prepayment fees with a floating interest rate plan

Bank of India offers its home loan services to NRIs for renovating or constructing a home. With a weak online presence, it is best to go to a Bank of India branch to make sure you meet the requirements for a home loan.⁷

PNB NRI home loan

Loan amount between 75-90% of the cost, depending on the amount Apply in person at a PNB branch Instant Loan available online for those that qualify

PNB offers home loans for renovating or new construction of a home. The application process may require applying in person and include your education qualifications, but PNB bank does offer home loan extensions to an existing PNB home loan.⁸

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Sources used for this article:

1. Axis bank
2. ICICI
3. SBI
4. HDFC
5. Bank of Baroda
6. Federal Bank
7. Bank of India
8. PNB

All sources checked as of 4 April 2022