NRI Home Loans Interest Rates Mar 2017

Get Details on what is the process of getting home loans in India from Banks like SBI, HDFC Ltd, ICICI, Axis bank

An Indian who has been living overseas for service, conducting business or pursuing a vocation is suitable for a NRI Housing loan. This post gives all the information on home loans from NRIs.

An NRI can avail of a loan of up to Rs.2 crore or an amount of up to 85% of the cost of the property. The rate of interest varies from 8.60 to 9.00% p.a. Almost all banks and financial institutions charge a processing fee, which is payable once and will amount to around 0.5% to 2% of the loan amount applied for.

NRI can get home loans for the purpose of:

  • Construction of new home / flat
  • Purchase of an already built (even old) home / flat
  • Extension to a home / flat
  • Purchase of a built-up plot

Banks typically ask for a security (at least one of the below):

  • Equitable Mortgage of House / Flat
  • One Guarantor
  • Life Insurance Cover of any existing or new policy issued under any acceptable plan of insurance having insurance
  • cover to the extent of loan amount.

Home Loan Interesr Rates March 2017

Bank Name Interest Rate
HDFC LTD 8.65% - 8.75%
ICICI Bank 8.65% - 8.85%
SBI Home Loan 8.50% - 8.70%
PNB Housing 8.50% - 9.10%
Axis Bank 8.65% - 8.70%
LIC Housing 8.50% - 8.70%
Fed Bank 9.68% - 10.08%
PNB Home Loan 8.45% - 8.50%
Bank Name Interest Rates
IDBI Home Loan 9.30%
DHFL Home Loan 8.60%
Indiabulls Home Loan 8.65% – 8.85%
Union Bank 9.50%
Vijaya Bank 9.65%
Bank of Baroda 8.35% - 8.55%
Indian Bank 9.55% – 9.75%
Shubham Housing 12%-14% - 15%-17%

Eligibility Required for NRI Home Loans:

The eligibility of the amount of loan disbursed will depend upon the individual’s repayment capacity. The calculation of repayment capacity is made based on factors such as monthly and annual income, source of income, savings and credit history, work experience, age, qualifications, number of dependents, other sources of income including spouse’s income, and assets and liabilities. Further, the probability of the individual continuing in the same occupation or his /her interest in alternate employment prospects when he/she comes back to India is assessed. The amount is disbursed in Indian Rupees.

The typical duration for repayment of the loan is three to ten years. The repayments are usually made in Equated Monthly Installments (EMIs), which are a mixture of the principal and interest amounts. EMIs get deducted from the month following the month in which the loan gets disbursed and can be made through post-dated checks from the NRE/NRNR account held by the NRI in India.

Housing loans are offered to NRIs by leading financial institutions and commercial banks in India like Citibank, SBI etc. As an NRI you can opt for the government supported ‘Griha Shobha’ scheme.

Documents Requirement for NRI Home Loans in India:

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