Introduction
NRIs can apply for home loans in India. They must meet certain eligibility criteria, such as age, income, employment status, and residential status. NRI home loans have attractive features and benefits. Based on long tenure, low-interest rates, digital sanction, and a database of approved projects.
Growing real estate opportunities in India have led to an increase in property purchases by non-residents of the country and persons of Indian origin (POA). India’s banking industry has been instrumental in supporting this growth by providing easy housing finance to NRIs. In this guide, we will learn about NRI home loans in India in 2024.
Table of Contents
- Introduction
- NRI Home Loan Eligibility
- Purposes for NRI home loans are issued
- Documents Required for NRI Home Loan
- NRI Home Loan Interest Rate of Banks in India in 2024
- Tax Benefits on NRI Home Loans
NRI Home Loan Eligibility
- Minimum Age: 18 years
- Maximum Age: 60 years
- Loan Tenure: Up to 30 years
- Loan Amount: Depends on the bank
Purposes for NRI Home Loans are Issued
NRI home loans serve several purposes for non-resident Indians (NRIs) who wish to invest in property in India. Here are some common reasons.
Purchase of Residential Property
- NRIs often use home loans to buy residential properties in India. Whether it is for personal use or as an investment, owning a home in their home country is an important goal.
Investment in Real Estate
- NRIs see real estate as a stable and appreciating asset. They invest in properties to generate rental income or to benefit from capital appreciation over time.
Retirement Plan
- Many NRIs plan to return to India after working abroad. Acquiring a property through an NRI home loan ensures that they will have a home upon their return.
Family Support
- NRIs often buy houses for their parents, siblings, or other family members living in India. It is a way to provide financial support and security.
Tax Benefits
- NRI home loans offer tax benefits on both the principal amount and the interest paid. These tax exemptions can reduce the overall tax liability for NRIs.
Emotional Connection
- Owning property in India allows NRIs to maintain a connection with their cultural roots and heritage.
Documents Required for NRI Home Loan
While applying for an NRI (Non-Resident Indian) home loan in India, you need to provide certain documents to complete the process. In the case of a personal loan application, a duly signed application form with a passport-size photograph should be submitted. Let’s see the list of required documents.
KYC Documents
- Proof of Identity: Valid Passport
- Proof of NRI Status: Valid Work Visa, Residence Permit, Permanent Citizen Card, OCI Card or OCI Declaration
- Foreign address proof
- Indian address proof (required only if selected as mailing or communication address)
- PAN Card or Form 60
Proof of Income
- The latest two-month salary slips or salary certificate
- Latest 3 months’ overseas bank statement with salary credit
NRI Business Proof
- Audited CA Certificate or CPA Compiled or Reviewed P&L Accounts and Balance Sheet (with schedule) for the last 3 years
- Last 3 years IT Returns and Income Computation
- Copy of Incorporation of Business (equivalent to Memorandum of Association and Articles of Association)
- Overseas operative bank statements for the last 6 months
- Certificate of Incorporation or Certificate of Company Registration
- Office address proof
- List of Directors and Shareholding Pattern
Property Documents
- Building Permit (if applicable)
- Registered Agreement of Sale, Allotment Letter, or Stamped Agreement of Sale
- Certificate of Occupancy (in case of ready-to-move-in property)
- Share Certificate
- Maintenance Bill
- Electricity bill
- Property tax receipt
- approved plan
- Builder’s registered development agreement
- Conveyance Deed (for new property)
- Payment receipts or bank A/C statements showing all payments made to the builder or vendor
NRI Home Loan Interest Rate of Banks in India in 2024
| Bank | Interest rate per annum |
| Kotak Mahindra Bank | 8.70% onwards |
| Union Bank of India | 8.35% onwards |
| Bank of Baroda | 8.40% onwards |
| Central Bank of India | 8.50% onwards |
| State Bank of India | 8.60% onwards |
| Bank of India | 8.30% onwards |
| HDFC | 8.50% onwards |
| Canara Bank | 8.55% onwards |
| LIC Housing Finance | 8.85% onwards |
| Punjab and Sind Bank | 8.55% onwards |
| IDFC First Bank | 8.75% onwards |
| Axis Bank | 8.70% onwards |
Tax Benefits on NRI Home Loans
Like resident Indians, NRIs can claim tax deductions on home loan principal and interest payments. The money paid as interest can be claimed under Section 80C of the Income Tax Act. Deductions can be claimed under Section 24B for interest payments. Under Section 80C, Rs. 1.5 lakhs can get tax exemption. Under Section 24B, Rs. 2 lakhs can get tax exemption.
Conclusion
NRI home loans require certain documents like a passport, visa, work permit, income proof, property documents, and power of attorney. NRI home loans are available from various banks in India, including ICICI Bank, HDFC Bank, and other financial institutions. They also offer different loan variants, like builder buy, resale, plot, or self-build. For more information, visit our Openplot.com
Also read: SMFG Grihashakti, NHB to Rs. 300 crore loan