Non-Resident Indians (NRIs) can buy residential property in India by taking home loans from banks and financial institutions governed by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA). These home loans enable NRIs to invest in Indian real estate for personal occupation or investment. The majority of banks provide NRI home loans with attractive interest rates, flexible repayment schedules, and extended loan term.
Major Features of NRI Home Loans
1. Eligible Properties
- NRIs can avail loans to purchase residential apartments, villas, independent houses, or under-construction properties.
- They are not eligible to purchase agricultural land, plantation land, or farmhouses using these loans.
2. Loan Tenure & Repayment
- The loan term normally is between 5 to 30 years, depending on the financier.
- Repayment has to be made solely through NRE/NRO accounts by way of EMI (Equated Monthly Installments) in Indian Rupees.
- NRIs are not allowed to make payments in foreign currency or cash.
3. Eligibility Criteria
- The individual should be a citizen of India residing abroad with proper evidence of NRI status (passport, visa, or work permit).
- The minimum age limit is typically 21 years, and the maximum age at the time of loan maturity must not be more than 60-65 years.
- NRIs with regular income sources abroad and a good credit rating have greater possibilities of getting approved.
