Can NRI apply for home loans in India

Can NRI apply for home loan in India

Yes, NRI can easily apply for can nri apply home loan in India, most banks, housing financial companies (HFCs) and Non-Banking Financial Companies (NBFCs) offer NRI home loans. A tailor-made home loan product for Non-Resident Indians (NRIs) Persons of Indian Origin (PIOs) or Overseas Citizens of India (OCIs) who wish to purchase residential property, construct a home on a plot of land or repair/renovate their existing property in India.

Loan applicants can get NRI home loan in India through the regular home loan product provided by various financial institutions offering within the broader category of home loans. The NRI Home Loan is available at interest rates starting from 7.40% p.a. and for tenures extending up to 30 years.

Loan-to-value ratio

However, the LTV ratio of nri home loan is the total proportion of a property’s value that a bank, NBFCs and housing finance companies. The LTV ratio for NRI home loans cannot exceed the regulatory caps on the home loan LTV ratios fixed by the RBI.  

The breakup of loan amount for an NRI Home Loan and the corresponding LTV ratio are as follows:

Loan Amount                                            LTV Ratio

Up to Rs. 30 lakhs                                Up to 90% of the property’s value

Above Rs. 30 lakhs to Rs. 75 lakhs     Up to 80% of the property’s value

Above Rs. 75 lakhs                              Up to 75% of the property’s value

Lenders initiate the credit risk assessment to determine the final LTV ratio for an NRI home loan borrower. Some factors are considered during the credit risk assessment process include the applicant’s credit profile, repayment capacity, market value of the property and so on.