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Everything You Need To Know About Nri Home Loan

By Author: Aishwarya Mahurkar
Total Articles: 291

When planning to purchase a plot of land or an apartment within the country is the best source of finance available is a home loan from a financial institution within the country. As compared to loans offered abroad, NRI home loans in India are far more affordable for the individual. The exchange rate makes the repayment of such a loan more affordable as compared to any loan offered by a foreign financial institution. Before applying for an NRI home loan however, there are a number of details an individual needs to be aware of:

1. An NRI home loan can be used for a variety of purposes by the applicant. Such a loan can be used to:
• Purchase a new home
• Purchase a ready built home on resale
• Construct your own house
• Extend your house
• Renovate your house
• Purchase a plot of land in any city or town
• Purchase a plot of land and construct your own house on it

2. The financial institution will offer the applicants loan at a starting rate of one lakh. Depending on the value of the apartment being purchased, the institution will only offer 80 percent of the value as loan to the NRI individual.

3. There are however, a number of other factors which are kept in mind when considering the loan amount an NRI is eligible for. The most common factors that institutions keep in mind are:
• Whether or not the applicant has NRI or PIO status
• Repayment capacity of the applicant
• Stability and income earned
• Number of dependents on the applicant
• Income of the Co-applicant
• Age of the applicant
• Credit score

4. Financial institutions offer a maximum tenure of 20 years which an applicant can choose to repay the loan amount. Opting for a longer tenure ensures that the EMI amount charged each month reduces. This puts a lower financial strain on the borrower and ensures that he loan is paid in full on time.

5. There are two repayment options available for a borrower who has applied for an NRI home loan. The Electronic Clearing System and Post Dated Cheques are the available repayment options.

6. The rate of interest which is charged on NRI home loans is higher than the interest charged on home loans for residents of the country. This however does not make the loan more expensive as the exchange rate is favorable for the NRIs.


Opting for an NRI home loan is extremely beneficial for individuals who wish to purchase a house or a plot of land within their home country. There are a number of financial institutions which offer such loans to assist NRIs in their attempt to purchase real estate within the country. As long as one follows the processes correctly getting their loan application approved is no longer a hassle.

Author Bio :

The author is a seasonal writer on topics of finance and the home loan at an affordable rates sector. Through her writing, she articulates aspects that are important to people availing facility such as NRI home loan, home loan eligibility criteria that help to make the best decision.

Total Views: 68Word Count: 495See All articles From Author

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