ICICI NRI Home Loan 2021-22: Interest Rates and Benefits
NRIs can get a home loan from ICICI Bank for various purposes such as buying a property or land, and construction of a home, etc.
Real Estate is one of the top investment tools for NRIs in India. It can be a form of retirement abode or an asset to bind the funds in. With the historical trend of immense growth and expansion, Real Estate has carved a separate niche for NRIs. Although, we need to understand that investing in Real Estate for an NRI is different when compared to a Resident India. Let’s see how:
NRIs can buy both residential and commercial properties in India. However, they can not buy any Agricultural Land, Farm House or Plantation property. They can only be inherited or received as gifts.
NRIs can invest in the real estate properties allowed to them through the following mediums:
Note: No payments can be made by traveller’s cheque (pre-paid, pre-printed fixed amount cheques for payments across countries) or in foreign currency notes. All payments must be made in India only.
NRIs prefer to invest in Real Estate in India because of the following reasons:
Taxation on Real Estate is a bit complex. It can be further subdivided into rent and capital gains. Along with that, TDS on buying a property is also a very essential instrument that must be deducted and paid to the government authorities.
1. TDS while buying property: Deduct TDS as per the table below while buying property in India keeping in mind the associated conditions.
Property Bought From |
Condition | Tax deducted at source |
Resident | 50 Lakhs or above |
1% TDS of Purchase Value |
NRI |
No Condition |
20% plus surcharge and cess for long term gains and 30% plus surcharge and cess for short-term gains |
2. Income from Rent: Rent from property owned by an NRI is subject to a TDS of 30% to be deducted by the tenant. The rent received after the deduction of TDS is added to the total income of the NRI and is applicable for tax according to the Tax Slab of the NRI. NRIs can also choose to pay taxes themselves and file the returns. However, there are certain deductions that must be considered: Municipal Taxes paid, standard deduction of 30% on taxable value, deduction for interest on any loan taken for the property, repayment of principal amount of home loan up to Rs.1,50,000/-.
3. Capital Gains Tax for NRI on sale of Property: The minimum holding period for long term capital gains for real estate is 2 years.
Nature of gains |
Tax Liable | Tax Deducted at Source (TDS) |
Short Term Capital Gains | As per tax slab |
30% |
Long Term Capital Gains |
20% |
20% (plus surcharge and cess) with indexation |
4. Taxation on Multiple Properties: If NRI owns more than one residential property which are self-occupied, then only one of the houses will be treated as self-occupied and all others will be treated as deemed to be let out. In such cases, a notional rent is computed and offered to tax as if the property was rented out
NRIs can get a home loan from ICICI Bank for various purposes such as buying a property or land, and construction of a home, etc.
HDFC Bank is one of the best lenders for affordable housing loans in India for Indians living abroad. HDFC NRI home loan is offered to every citizen of India including Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), or Overseas Citizens of India (OCIs). NRIs living in countries like the US, UK, Singapore, Middle East, etc. and the employees of Merchant Navy can borrow a home loan from HDFC Bank for the purchase and construction of a flat or bungalow, at an attractive interest rate starting from as low as 6.95% per annum.
SBI NRI Home Loan: Owning a home in India is a matter of pride, emotion and comfort for Indians living abroad. Buying a home in India connects NRIs to their roots. This is the reason most Noon-Resident Indians wish to purchase a house in India. However, due to a shortage of funds, it may be a little difficult to purchase a home for Indians living abroad. Considering this, multiple banks and NBFCs (Non-Banking Financial Companies) offer a home loan for NRIs.
If you are an NRI investing in India looking for the best advice, here it is: Invest in Indian Real Estate. The Indian Real Estate has been one of the best sectors for investment for NRIs in India. In this article, we will explore the top 5 locations for NRI Investment in 2020 that can turn out to be very profitable.
NRI Agricultural Land: Are you an NRI Planning your retirement in India? Do you wish to own a beautiful farmhouse, a bit on the outskirts of the busy city life, with a wonderful lawn for the kids to play in and an easy chair where you can sit and enjoy your morning tea while reading the good old newspaper? Tempting! Isn’t it? But Can NRI buy agricultural land in India? Can you actually plan this retirement at a farmhouse or an agricultural land/ plantation property? Can you buy agricultural land in India? Let’s find out.
Repatriation of Sale Proceeds: Real Estate is the premium segment of investment for both residents and NRIs. Time and again we have explored the benefits of investing in Real Estate and have carved out a special segment where you can browse through the highlights of investing in real estate in India. Covering all the various aspects such as which properties can NRIs buy or inherit in India along with the documentation requirements, benefits and taxation that follow, it becomes necessary to address the concern of NRIs on how can they repatriate the sale proceeds covering valid points like the limits, channels and the associated rules and regulations around it. In this article, we will focus on this particular aspect. Below is a table for you to browse along the other important aspects concerning NRI selling and buying property in India.
For NRIs who have it in their minds to own a house in India, major banks such as HDFC, SBI, Axis, Kotak, etc. provide NRI Home Loan facility. In this article, find out the latest interest rates on home loan for NRI in India along with the key benefits, documentation requirements and process of application.
Amongst the plethora of investment options in India for an NRI, Real Estate has an edge. Especially during the present times with the huge reflux of NRIs returning to India, Real Estate has turned out to be the hot-spot for investments. Buying a house or a piece of land, it’s all over the place. The intentions are scattered; some are investing for a contented retirement, while some want an asset that brings in a decent income, whereas some just want a place to spend their lives after returning for good. Reasons are too many, medium just one. Real Estate!
Becoming an NRI means staying away from one’s home country. Staying away doesn’t let you stay in the house where you spent your entire childhood. When you inherit these properties, you have multiple options. You can keep it as your retirement plan, rent it out, gift it to your relatives or sell it for good if you want to stay abroad after retirement. In this article, we will understand the elements of inherited property in India and the tax implications for an NRI selling inherited property in India and other related aspects.
Buying a house is always on the check-list for everyone. If we look at it from the perspective of investment, NRIs often wonder, why should they buy a house in India? In this article we will be addressing this very question.