As an NRI, buying a new home for your family in India or renovating your family's home can feel like fulfilling a life purpose. Find out more about NRI home loans and how they work with popular banks in India.
First, here are some Indian banks that offer NRI specific home loans. This list is not exhaustive and is not in any particular order:
- axis bench
- Industrial Credit Investment Bank of India
- State Bank of India
- HDFC-Bank
- Bank of Baroda
- Commonwealth Bank
- Bank of India
- PNB
To see how each bank compares, here is a handy chart comparing each bank's NRI home loans:
| Provider | happen | Interest rate (annual interest rate) | Electromagnetic Interference | cost | Credit amount | credit term |
|---|---|---|---|---|---|---|
| axis bench | Must be an NRI, PIO or OCI and meet income requirements. Must be at least 24 years old | 6,75-12 % | Interest Rate and Major Axis Bank PMI Calculator calculated monthly | Up to 1% of the loan amount, maximum 10,000 rupees | INR 3 - INR 75 and up | 1-25 years old |
| International Federation of Industrial Industries | Employees have at least one year's professional experience. The income requirements must be met | start at6,70 % | Calculate interest and principal monthly | 0.50% of the loan amount | 30-5 million rupees | up to 30 years |
| State Bank of India | Applicants are between 18 and 60 years old | start at6,70 % | Monthly SBI EMI Calculator for Interest and Principal | 0.40% of the loan amount with a minimum of Rs 10,000 and a maximum of Rs 30,000 | 30-75 rupees and more | up to 30 years |
| HDFC-Bank | Must be between 21 and 65 years old. Must meet income requirements | start at6,70 % | Flexible EMI Available HDFC NRI EMI Calculator | Up to 1.25% of the loan amount | More than 750,000 rupees | up to 30 years |
| Bank of Baroda | Must be between 21 and 70 years old | start at6,75 % | Monthly calculated Interest Rate and Central Bank of Baroda PMI Calculator | 0.50% of the loan amount | Up to Rs. 1 crore | up to 30 years |
| Commonwealth Bank | The maximum age at the end of the term of office is 55 years. PIO/OCI required co-applicants residing in India | start at7,65 % | Simple Commonwealth Bank EMI Calculator | 0.50% of the loan amount, minimum 10,000, maximum 20,000 0.45,000 | up to 15 million | up to 20 years |
| Bank of India | Suitable for employees, self-employed and professionals | start at6,85 % | EMI can be adjusted according to repayment ability | 0.25% of the loan amount with a minimum of Rs 1,500 and a maximum of Rs 1,500. Rs 20,000 | Up to 5 million rupees | up to 30 years |
| PNB | The maximum age at the end of the term is 70 years. Work abroad for at least 1 year | start at6,75 % | PNB Bank's monthly calculated interest and capital PMI calculator | 0.50% of the loan amount | More than 750,000 rupees | up to 30 years |
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How to choose the right home loan for NRI
Choosing the right home loan can help you get your loan faster, save money, and make your loan easier to manage. Here are some factors to consider when trying to find the NRI home loan that is right for you:
Loan Amount and EMI
In most cases, the size of your loan will be based on the cost of the property you want to buy or the cost of building renovations. It is considered as a percentage of the cost and can vary between70-90 %Depends on the crowd. When you submit a loan application, you must provide an estimated cost and supporting documents.
Most banks offer an EMI option that allows borrowers to make equal repayments over the life of the loan. It's a good idea to use the EMI calculator on the bank's website to try different loan amounts, interest rates, and tenors.
happen
First, make sure that the loan you are applying for is specifically for non-resident Indians so that your income and supporting documents are appropriate.
Next, make sure you meet the income requirements to apply for a loan. Also, check which situations require co-applicants residing in India. Remember, if you're applying together, your earning spouse can help make your application more compelling.
repayment
The first thing to consider is the interest rate on your loan. The lower the interest rate the better, but be sure to look at the bigger picture.
Even if banks offer low interest rates, banks charge additional fees and charges. Also, talk to your bank representative about different ways to lower your interest rate without increasing fees or tenure, such as adding a co-applicant.
Consider whether you can get a flexible repayment schedule or if there is an early repayment fee. Flexibility can put you at ease and help you through life's ups and downs. However, this stability can also feel good if you prefer to know a fixed amount for the loan term right from the start.
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Insurance
Home insurance can be another factor to consider. Many Indian banks offer optional home insurance with NRI home loans.
Axis Bank NRI Home Loans
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Axis Bank NRI Home Loans are tailored to your needs with a smooth process for easy online loan application. However, depending on your region, there are monthly income requirements for applicants and a minimum work experience is required.
ICICI Bank NRI Home Loans
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ICICI offers NRI home loans that can be used for new home purchases, renovations or home loans. Each has a different tenure and can serve as either an employed NRI or a self-employed NRI, provided work experience and income requirements are met. ²
State Bank of India NRI Home Loans
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SBI provides home loans to NRIs for the purchase of houses or investment property. SBI can offer some of the lowest fees and also offers discounted rates for female applicants.
HDFC Bank NRI Home Loans
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HDFC is a popular home loan bank with NRIs for renovating or buying a home or single family home. There are flexible repayment options and automatic EMI payments, but there is a fee for early repayment. ⁴
Bank of Baroda NRI Home Loans
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The Bank of Baroda offers NRIs a range of home loans to choose from and you can also get a free credit card for a year when you borrow Rs 200,000 or more. The Bank of Baroda also does not require a co-applicant and you can apply online. ⁵
Commonwealth Bank NRI Home Loans
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The Commonwealth Bank offers NRI home loans that can be used to build a new home, purchase land or landscaping an existing home. Commonwealth Bank loans can cover up to 85% of costs, and simple EMIs make payments even easier. ⁶
Indian Bank NRI home equity loan
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Indian banks offer home loans to NRIs for home renovation or construction. With a weak online presence, it is best to visit an Indian bank branch to ensure you qualify for a home loan. ⁷
PNB NRI Home Loan
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PNB offers home loans for the renovation or new construction of houses. The application process may require you to apply in person and provide your educational qualifications, but PNB Bank offers deferrals on existing PNB home loans. ⁸
Sources used in this article:
- axis bench
- International Federation of Industrial Industries
- SBI
- HDFC
- Bank of Baroda
- Commonwealth Bank
- Bank of India
- PNB
All sources verified as of April 4, 2022
This publication is for general informational purposes only and is not intended to cover all aspects of the subject matter discussed. It is not advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content of this publication. The information in this publication does not constitute legal, tax or other professional advice by Wise Payments Limited or its affiliates. Prior results do not guarantee similar results. We assume no liability, either express or implied, for the accuracy, completeness or timeliness of the content of the publication.