Can NRIs Get a Home Loan to Purchase Property in India? - Home Loan Stories | Kotak Mahindra Bank
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05 MAY, 2021

For Indians staying abroad or Non-Resident Indians (NRIs), purchasing a property in India is more about staying connected to their native land. Moreover, the decreasing value of Rupee works in the favour of most NRIs and helps them buy their dream house easily. To fund their property purchase in India, NRIs can also avail a home loan with leading banks or financial institutions. However, keep in mind that the interest rate for NRI home loans is slightly higher as compared to home loans for resident Indians.

Below, we are going to shed some light upon the home loan eligibility for NRIs as well as the other specifications of NRI home loans.

NRI Home Loan Eligibility

In order to avail a home loan in India, an NRI should be able to fulfil the following criteria:

  • Should be a salaried or self-employed individual
  • Have at least 3 years of work experience in the country of residence at the time of loan application

Documents Required for an NRI to Avail Home Loans

  • Income proof, identity proof, and banking details
  • Age proof and address proof
  • Photocopy of a valid passport and visa
  • Appointment letter, employment letter and copy of contract for salaried individuals.
  • Power of Attorney, if applicable

Power of Attorney

If you are an NRI looking forward to availing a home loan in India, it is advisable to appoint any of your relatives as the Power of Attorney (POA) holder in India. The POA holder can act on behalf of you and hence, your physical presence would not be required at all times for processing the home loan application. Appointing a POA holder can help you save significant amount of time and efforts.

With leading banks such as the Kotak Mahindra Bank, you can easily avail an NRI home loan. Kotak Mahindra Bank offers highly customised facilities and services that make your home-buying experience a pleasurable one. Some of the major benefits of availing an NRI home loan with Kotak Mahindra are mentioned below:

  • Higher loan eligibility
  • Attractive interest rates
  • Convenient loan disbursement process
  • Minimal documentation
  • Insurance option to cover your home loan at an attractive premium
  • Quicker turnaround time

You can avail an NRI home loan for financing your dream home, be it through purchasing a new home or a resale home. You can also avail this home loan for purchasing a plot or constructing your home on a plot owned by you.


In case you plan to buy an under-construction property, you can opt to pay only the interest until the completion of construction of the property, after which you can start your regular EMIs. However, if you wish to start repaying your principal too, then you may opt to tranche the loan and start paying the full EMIs. On the other hand, while purchasing a fully constructed property, your EMIs would commence immediately.

In case you decide to return to India permanently, your status would change from Non-Resident Indian (NRI) to Resident Indian. In such a scenario, the bank may re-evaluate your loan eligibility and repayment capacity and work out a revised repayment schedule.

Lastly, before you avail an NRI home loan, make sure that you read and understand the terms and conditions of the loan agreement carefully to avoid any inconvenience later.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.