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Nri Home Loans Vs Resident Home Loans

By Author: Aishwarya Mahurkar
Total Articles: 291

Home loans are a type of loan which allows individuals to purchase their dream house of purchase a plot of land on which they can build the house of their choice. There are however different home loans offered to applicants who are residents of the country and NRIs. The main difference between home loans for NRIs and resident home loans are:

Interest charged

The interest rate charged on resident home loans are decided based on the base rates of financial institutions. The interest rate which is charged on NRI home loans however is comparatively higher. This may cause several NRIs to feel that home loans for NRI are an expensive source of finance. However, in many cases, the exchange rate is favorable for the NRI which makes the repayment easier and puts a lesser financial burden on the borrower.

Documents required

The basic documents required for applicants who apply for a resident home loan are income proof, identity proof and official documents proving the purchase of the apartment or piece of land. Financial institutions offering home loans for NRI require a larger number of documents along with the home loan applicant provided.

Maximum loan amount

The maximum loan amount that both residential and NRI home loan applicants can apply for is 5 crores. However, applicants for residential loans are given the option to get up to 85 percent of the value of the house being purchased as a loan. NRIs on the other hand can only avail up to 80 percent of the value of the house being purchased as a loan.

Eligibility criteria

The basic eligibility criteria for both home loans for NRIs and residential home loans are the same. Financial institutions look at the applicant’s age, qualifications, income earned, number of dependents and credit score. In the case of NRI home loans however, the applicant is required to have a NRI or PIO status and must be working abroad with valid documents as required by the RBI.


Individuals who are repaying a residential home loan can do so through a normal account. NRIs however, are required by financial institutions to have either an NRE or an NRO account with remittance from abroad. No other funds can be used by the NRI to repay the home loan. Also, the repayment of the loan must always be done only in Indian rupees.

Though similar, both resident home loans and home loans for NRI have a number of differing points. Before applying for any such loan, it is crucial for the individual to read so as to ensure that the application and repayment process occurs with ease.

Author Bio :

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

Total Views: 63Word Count: 482See All articles From Author

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