Federal Bank offers Non-Resident Indians (NRIs) a hassle-free home loan to help them buy their dream home. NRI customers can avail a housing loan at competitive interest rates for a variety of financial requirements such as the construction of a house, acquisition of land, home repair or renovation, extension of the house, reimbursement of debt incurred for construction, purchase of a plot for house/ villa, etc. NRIs can get a Federal Bank NRI home loan for a flexible repayment tenure of up to 20 years at an interest rate starting from 7.65% per annum.
Also Read: Why should an NRI buy a house in India?
Federal Bank NRI home loan interest rate
| Particulars | Salaried applicants | Self-employed applicants |
|---|---|---|
| Interest rate | 7.65% to 7.75% p.a. | 7.70% to 7.80% p.a. |
| Loan amount | Up to Rs. 15 crore | Up to Rs. 15 crore |
| Repayment tenure | Up to 20 years | Up to 20 years |
| Processing fee | 0.50% of the sanctioned amount (subject to min: Rs. 3000 and max: Rs. 7500) | 0.50% of the sanctioned amount (subject to min: Rs. 3000 and max: Rs. 7500) |
Additional charges and fee
| Type | Charge |
|---|---|
| Prepayment/ foreclosure charges | Nil to 3% of the outstanding amount |
| Documentation charge | Rs. 10,000 |
| Admin fee | Rs. 3000 to Rs. 7,500 (0.50% of the loan amount) |
| Late payment charges | 2% p.m. of the outstanding amount |
| Switching interest from fixed to floating rates and VV | 0.25% of the unpaid balance |
Eligibility criteria for NRI home loan from Federal Bank
- All NRIs including salaried, self-employed and business persons alike are eligible for Federal Bank NRI home loan.
- PIOs (Persons of Indian Origin) who meet the following conditions can also get a home loan:
- The loan should be secured by immovable property in India in the name of PIOs.
- The applicant should have a valid PIO card accompanied by a valid passport.
- A close relative residing in India should be a joint borrower of the loan.
- Age of the borrower should not be more than 55 years at the end of the loan tenure.
- The minimum income of the applicant should not be less than Rs. 50,000 per month.
Documents required for NRI home loan
| Particulars | Document type |
|---|---|
| KYC documents | – Copy of valid passport – Copy of valid visa for the continuation of employment/ work permit – Copy of valid address proof – Passport size photos of the applicant/ co-obligant |
| Income proof | For salaried applicants –NRE account statement with Federal Bank/ other bank for the past 2 years – Embassy attested salary slips/ certificate For non-salaried applicants -NRE account statement with Federal Bank/ other bank for the past 2 years – Balance sheet/ profit & loss account for the past two years should be submitted |
| Other documents | – Title documents: Title deed & prior deeds – Encumbrance certificate from sub-registrar – Latest land tax receipt – Possession certificate – Approved building plan – Location sketch- Other documents that may be required by the bank |
| For the purchase of built house/ flat | – Agreement of sale – Latest building tax receipt |
| In the case of flat/ villas | – Sale & construction agreement (original) – Letter of allotment from the builder – Tripartite agreement |
| For house construction/ extention/ renovation | – Estimate report from civil engineer/ architect – Permission for construction from local authorities – NOC for construction in the case of extension |
Features & benefits of Federal Bank home loan
- Multipurpose housing loan for the purchase, construction, renovation, etc. of home or purchase of plot for the construction of a home.
- Attractive interest rate starting from as low as 7.65% per annum.
- Funding up to 85% of the project cost.
- Minimal paperwork.
- Higher loan amount up to Rs. 15 crore can be availed.
- Flexible repayment tenure up to 20 years.
- Easy repayment in EMIs.
You can apply for the loan online in simple steps. After receiving the home loan application, the bank will process your application and inform further details.
Repayment options
You can repay Federal Bank home loan for NRIs in equated monthly installments (EMIs), using any of the following ways:
- Cheque
- Standing instruction at your branch
- FedNet – Internet banking
- Mobile banking
- Automated payment through ECS
Also Read: Investment in India by NRI: Real Estate 2021
Federal Bank NRI Home Loan EMI Calculator
To get an idea about the potential EMIs and ascertain whether it will fit into your monthly budget, you can use Federal Bank NRI home loan EMI calculator. An EMI calculator helps you calculate the amount you will need to pay per month towards your loan repayment, based on the principal, interest rate and loan term. Type the principal loan amount, interest rate and loan, and click on the ‘Calculate’ button to find out the EMI.
If you want to get a home loan in India, you can get in touch with us. We at SBNRI are here to help you out with everything related to home loans 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 home loan.
You can also click on the button below to ask any questions. Visit our blog and YouTube Channel for more details.
FAQs
NRIs and PIOs who meet the eligibility criteria can apply for an NRI home loan from Federal Bank. You can apply for the loan online on the bank’s website. Alternatively, you can download SBNRI App. SBNRI will help you get an NRI home loan with a seamless process.
Almost all leading banks offer home loans to NRI customers. Features of an NRI home loan vary from bank to bank. You can compare key features of home loans offered by various lenders like interest rate, repayment tenure and prepayment policies to find the best NRI home loan.
It is not necessary to be physically present at the time of loan application and disbursal. You can appoint a power of attorney (POA) who can apply for the loan on your behalf.
Your property i.e. house or plot purchased using the loan will be mortgaged against the loan.
Yes, Federal Bank offers NRI home loans online. You can apply for an NRI home loan from Federal Bank online on the official website of the bank. Alternatively, you can download SBNRI app to apply for the home loan.
