NRI Home Loans and Paying for Property from the US

Can NRIs get a home loan in India?

Yes. Most major Indian banks and housing finance companies lend to NRIs and OCIs for buying a home. EMIs are paid from your NRE or NRO account, or by remittance from abroad.

How much can you borrow?

Reserve Bank of India rules cap how much of the property's value a lender can finance:

• Up to 90% for loans up to ₹30 lakh
• Up to 80% for loans from ₹30 lakh to ₹75 lakh
• Up to 75% for loans above ₹75 lakh

Lenders also look at your income, credit history and age. Many allow a resident family member as co-applicant.

Documents lenders usually ask for

• Passport, visa or work authorisation, and OCI card if applicable
• Recent pay slips and an employment letter
• US tax returns or W-2 forms for the last two years
• Overseas and Indian bank statements
• PAN card and the property's booking documents

Sending money to India

Wire funds from your US account to your NRE account, then pay the developer from there. NRE balances are freely repatriable, and keeping the bank records of each remittance makes later repatriation simple.

Repatriating money when you sell

Sale proceeds of up to two residential properties can be sent back abroad, up to the amount you originally paid in foreign exchange or from your NRE or FCNR account. Other balances in an NRO account can be repatriated up to USD 1 million per financial year, with a chartered accountant's certificate. When an NRI sells, the buyer deducts TDS on the capital gain, so plan the sale with a CA.

FAQs

This guide is general information, not legal or tax advice. Rules change; confirm the details with a chartered accountant or lawyer before you act.