Can NRIs Apply For Home Loan In India – Who Can Avail?

NRIs looking to invest in real estate in India are eligible for home loans from banks and other financial institutions.

They can apply for home loans for as many properties as they like in India. The Indian real estate market is attractive for non-resident Indians (NRIs) as it is easier to earn in a stronger currency and pay in Indian rupees.

Anyone who comes under the definition of the Foreign Exchange Management Act, 1999 (FEMA) can avail of a home loan in India. 

FEMA defines an NRI as someone who resides outside India for “employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period”. It also says that an individual will also be considered NRI if his stay in India is less than 182 days during the preceding financial year. 

However, Different Banks Have Different Criteria For Home Loan Application And Eligibility, But General Criteria Have Been Outlined Below –

1. Interested person must be within the age bracket of 18 – 60 years. Some banks also list 24 years as a minimum age for NRI applicants.
2. The applicant should have been employed abroad for at least two years or should be serving a valid job abroad for a minimum period of two years.
3. The amount of loans that can be provided depends on the bank’s prerogative and customer’s eligibility.
4. The time period of the home loan generally ranges from 5 years to 15 years.

An NRI cannot purchase more than two properties in India. This is regardless of if you own a property in the country you are working in and residing in. There are no such restrictions on the commercial property though.”  However, NRIs are not allowed to purchase agricultural land here. This means that an NRI home loan can be availed to purchase, construct, renovate a new or existing house. You can also take home loans to purchase a plot of land for residential use.

Acts pertaining to property in India