The main reason why Indians go abroad is in search of higher income. So when they do get their hands on the extra money, many of them want to send it back to India to be invested in some suitable asset class. With high returns in recent past, real estate has become one of the most attractive options for NRIs. Even for those who do not have the full amount to buy the property on cash. Lenders offering NRI home loans serve such NRIs.

NRI home loans are similar in structure to regular resident Indian home loans but differ on some key factors.

The interest rates and other charges for NRI home loans are same as those offered to resident Indians. Similarly, NRI home loans also have loan tenors of 20 to 30 years. But some risk-averse lenders have restrictions like 10 or 15 years (depending on country of NRI) on the loan tenure.

Regarding age and income stability, the criteria differ from one lender to other. Some lenders require NRIs to have worked for atleast 2 years abroad while other ask for only one-year experience. Many lenders also have a minimum monthly salary as one of the deciding factors. So people who are in blue collar jobs abroad might find it difficult to get NRI loans in India.

NRI home loans

Documentation requirements are pretty similar to the requirements for resident Indians. NRIs are required to submit a copy of passport, visa and employment related documents, salary slips, appointment letter, and employment contract and address proof.

Not surprisingly, NRI loan repayment is due only in Indian rupees and not in the currency of the country where NRI resides. Repayments can only be made by remittances from abroad through normal banking channels or through a NRE or NRO accounts.

So as it can be seen above, the NRIs too have an easy way to avail financing for buying their dream homes in India. So if you a NRI looking to purchase some property in India and are confused about lending options, then don’t hesitate for a moment and get in touch with your Indian banks or financial institutions.