Properties are the most valuable tangible assets and stand to serve as an important source of liquidity in times of financial crisis. Similar to resident Indians, Non-Resident Indians (NRIs) can use their property in India to meet their personal expenses or business requirements. Many Indian banks and NBFCs offer a loan against property to NRI customers, popularly known as an NRI loan against property. For best banks for NRI loan against property, continue to read the article.
Also Read: Can an NRI buy or own property in India?
Best banks for NRI loan against property
Many leading banks/ lenders in India offer loans against property to NRI customers at attractive interest rates and minimal paperwork. NRIs who own a residential/ commercial property in India are eligible to get an NRI loan against property.
Here are some of the best banks for NRI loans against property, including SBI NRI loan against property, Axis Bank NRI loan against property, Federal Bank NRI loan against property, etc.
| Bank | Loan amount | Interest rate | Processing fees | Loan tenure |
|---|---|---|---|---|
| SBI | Rs. 10 lakh to Rs. 7.5 cr | 1.45% + 1 yr MCLR to 3.00% + 1 yr MCLR | 1% of the loan amount + service tax (subject to max Rs. 50,000) | 5 to 15 years |
| Axis Bank | Starting from Rs. 5 lakh | Starting from 11.0% p.a. | 1% or Rs. 10,000 (whichever is higher) | Up to 15 years |
| Bank of Baroda | Rs. 2 lakh to Rs. 10 cr | From BRLLR + SP + 1.20% to BRLLR + SP + 6.85% | 1% (subject to Min Rs. 8,500 to Max Rs. 1,50,000) | Up to 120 months |
| Federal Bank | Up to Rs. 5 cr | 10.10% p.a. onwards | Terms & conditions apply | Up to 15 years |
| IndusInd Bank | Based on your profile and eligibility rating by the bank | Linked to MCLR or external benchmark | Up to 2% of loan amount | 1 – 15 years |
Note: NRI loan against property interest rates and other charges are subject to periodic changes without prior notification
Eligibility criteria for NRI loan against property
While criteria may slightly vary from lender to lender, here are some basic eligibility requirements for NRI LAP:
- NRIs/ PIOs who have a residential or commercial property in their own name or in the name of spouse/ parents/ children/ siblings.
- Minimum net monthly income of the applicant should be as defined by the bank.
- NRI loans under LAP should be liquidated before the principal borrower reaches the maximum age defined by a lender.
- Age of the applicant should be between 21 years and 65 years.
Documents required
NRIs will need to submit the required documents to apply for a loan against property. Although documentation will differ from lender to lender, here is the checklist of documents required to apply for NRI loan against property:
- Filled LAP application form
- Identity proof: Passport/ Aadhaar card/ driving license/ voter’s ID card/ GOI issued photo ID
- Passport showing the relevant visa stamps
- Valid visa or work permit copy/ OCI card
- PAN card
- Aadhaar card/ driving license/ latest utility bills (electricity bill/ telephone bill/ gas bill)/ property tax receipt
- Signature proof: PAN card/ birth certificate/ passport/ SSC marksheet
- Income proof:
- Salaried applicant: Salary slips/ 6 months NRE/ NRO bank account statement/ Form 16
- Self-employed: 2 years ITR, computation of income, Profit & Balance sheet verified by CA/ Tax Audit Report (if Gross Turnover Exceeds Rs. 1 cr or Gross Receipt Exceeds 25 lakh) and a self-attested document stating the nature of your business
Also Read: Repatriation of Sale Proceeds: NRI Selling Property in India 2021
If you want to get a loan against property in India, you can get in touch with us. We at SBNRI are here to help you out with everything related to NRI loan against property (LAP) in India and other financial and legal services required by NRIs.
You can download SBNRI App to connect with our experts and get end-to-end assistance related to an NRI personal loan.
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FAQs
Loan against property for NRIs is available from Rs. 5 lakh to Rs. 15 cr.
To apply for a loan against property, NRIs can visit the NRI page of the respective bank and fill up the application form. For example, you can apply for SBI NRI loan against property on SBI NRI banking page and follow the procedure. And for Axis bank NRI loan against property on Axis Bank’s official website.
You can pledge any of your Indian residential or commercial property like home, shop and office which you wish to mortgage with the bank.
Each lender has its own set of interest rates, lending tenure, quantum of loan, repayment options and conditions. Before applying for a loan against property, you must compare the features of the loan to get the best deal.
