In this article, we will be taking a look at NRI home loan eligibility, benefits and features.
NRI home loan eligibilityTo take out a home loan in India, an NRI should meet the following criteria:
- Age – An eligible candidate should be between 18-70 years old.
- Nationality – The candidate should be Indian. Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) are both eligible. Overseas Citizens of India (OCIs) are also eligible except citizens of Afghanistan, Bangladesh, Bhutan, China, Iran, Nepal, Pakistan and Sri Lanka
- Work Experience – A candidate should have at least two years of experience in the company he/she currently works for.
- Loan Amount – The loan amount depends on an individual borrower’s profile and differs from person to person.
- Loan Tenure – Most lenders allow a loan tenure of up to 30 years.
- Interest Rate – Interest rates vary for different lenders, but can start as low as 8.60% per annum.
- Prepayment Charges: The prepayment charges for most lenders range from nil to 2%.
- Late Payment Charges: For most lenders, late payment charges begin at 1% and are capped at 3%.
- Other Prerequisites: NRIs require an Indian resident to be a co-applicant, co-borrower or co-owner of the respective house or property.
NRI home loan benefits and featuresLet’s have a look at the benefits and features of an NRI home loan:
- An NRI home loan can be availed to meet all kinds of property-related requirements, including purchasing a house, constructing a house and renovating an existing property in the country.
- The application process is simple and isn’t very time-consuming.
- With most lenders, a candidate can apply for an NRI home loan online. The process is quick and transparent. It is also possible to track the status of an application with ease, from any part of the world.
- Most NRI home loans have attractive interest rates on a monthly reducing basis. Candidates also have the option to choose between fixed or a floating interest rate.
- Almost all lenders provide a prepayment facility for either none or very little extra fees.
If the mentioned NRI home loan eligibility criteria are met, it is fairly easy to get an NRI home loan in India. For NRIs looking to own a house in India, there are various banks that offer home loans to NRIs at low-interest rates.
Learn more about your home loan eligibility here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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