Shajai Jacob, CEO – GCC (Middle East) – ANAROCK Property Consultants
Just like resident Indians, NRIs can invest in any number of properties in India and are also eligible to avail of home loans for as many properties as they like.
Of course, while there is no cap on the number of properties for which an NRI can take home loans for, repayment capacity must always be factored in.
Over-leveraging is never a good idea and regardless of what viewpoint a bank takes, NRIs must do their own repayment capacity calculations.
In India, most banks and non-banking financial institutions offer home loans to NRIs. However, the tenure of the home loan may vary, and the rate of interest is usually higher for NRIs.
Loan Tenure and Rate of Interest
An NRI usually has to pay a higher rate of interest than resident Indians. The tenure for a home loan to an NRI usually ranges between 5 to 20 years – only in select cases can it go up to 30 years for salaried professionals.
Most banks determine the loan amount eligibility of NRI borrowers based on their income and credit history.