Friends, if you work or live abroad and want to buy a home or build on a plot in India, an NRI home loan is the perfect option! Banks grant loans based on your foreign income, and the process is now online. Let’s take a step-by-step look at how to apply, what documents are required, and how to get the cheapest loan.
What is an NRI Home Loan?
The only difference between a normal home loan and an NRI home loan is that banks consider your foreign salary, bank balance, and credit score.
The interest rate is slightly higher (0.25-0.50% extra), but EMIs can also be paid from your foreign account. The maximum loan amount is up to 60-80% of your salary, and the tenure is up to 20-25 years.
Who Can Apply?
- An Indian passport holder or OCI/PIO card holder
- Being employed or running a business abroad for at least 6 months
- Age 25-60 years (loan should be repaid by retirement)
- Having a co-applicant in India (parents, wife, siblings) is preferable – the loan is approved faster.
Step by Step – How to Apply for a Loan
1. Decide Your Budget
Keep a down payment of 20-30% of the home’s value. Take a loan for the rest.
2. Choose a Bank
Best banks for NRIs:
- SBI (most branches abroad)
- HDFC
- ICICI
- Axis
- PNB Housing
Rate of interest now starts at 8.75% (until November 2025).
3. Apply Online or at a Branch
Go to the bank’s website (e.g., sbi.co.in → NRI Services → Home Loan).
Fill out the form, upload documents.
Or have a relative in India submit the form to the branch.
4. Have Your Documents Ready
- Passport + Visa/Work Permit
- Abroad employment contract or salary slips (last 6 months)
- Abroad bank statement (last 6-12 months)
- Indian PAN card + Aadhaar (co-applicant’s)
- Property documents (sales agreement)
- NRE/NRO account details
- Credit report (Equifax or CIBIL’s India score)
5. Pay a Processing Fee
₹5,000 to ₹20,000 (non-refundable).
The bank will verify.
You can call your foreign office.
Property valuation in India will be done.
A sanction letter will arrive within 7-15 days.
6. Loan Disbursement
The money will be deposited directly into the builder’s or seller’s account.
How Can I Get the Cheapest Loan?
- Have a CIBIL score of 750+
- Add a co-applicant (wife or parents)
- Choose a fixed rate if the dollar is strong
- Pay EMIs from an NRE account – you save on taxes
- Check out Diwali/December offers – the processing fee is waived
How Much Loan Can I Get?
Example:
If you’re earning ₹1 crore a year in Dubai, you can get a loan of up to ₹4-6 crore.
EMI: ₹3-4 lakh per month (for 20 years).
Important Points to Remember
- As per FEMA rules, an NRI can only purchase two properties (for self-use).
- Repayment is only allowed from an NRE/NRO/FCNR account.
- Prepayment charges apply (2-4%) if you want to close early.
| Item | Details |
|---|---|
| Interest Rate | 8.75% – 10.5% (2025) |
| Loan Amount | Up to 60-80% of salary |
| Tenure | Up to 20-25 years |
| Processing Fee | ₹5,000 – ₹20,000 |
| Prepayment Charge | 2-4% |
| Best Banks | SBI, HDFC, ICICI |
Pros and Cons
Pros
- High salaries abroad can lead to larger loans.
- Online process, no need to come to India.
- Tax benefits on interest (Section 24).
- Property in India; EMI can be calculated from rent.
Cons
- Interest rates slightly higher than normal.
- More documents are required.
- Currency fluctuations can increase EMI.
- Approval takes a while (15-30 days).
Final Point
Getting an NRI home loan is quite easy if your documents are ready and your credit score is good. First, visit the SBI or HDFC website, check the EMI calculator, and apply. If you add a co-applicant, there’s a 90% chance the loan will be approved within 15 days!
Tell us in the comments – which country are you from and how much do you plan to buy? And yes, if you found this guide helpful, please share it!
