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Purpose of a NRI Home Loan


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Non-Resident Indians (NRIs) can avail a home loan for the following purposes:

  • Purchase of a new house or flat
  • Construction of a new house or flat
  • Repair, renovation or extension of an existing house or flat
  • Purchase of an existing house or flat
  • To purchase a plot of land.
    • If you want to take a NRI home loan for purchase of a piece of land, it should meet the following conditions:
  • It should be for residential purposes
  • It should be located within municipal limits
  • It has to be a non-agricultural (non-farm) land
  • SBI also offers NRI home loans with the option of purchasing furnishings and consumer durables, as a part of the project cost.
In addition to above, NRIs can avail loans by mortgaging an existing residential property for meeting expenses related to business, travel, education, marriage, purchase of a property, renovation of a property, medical treatments etc. Called as the loan against property, it has a relatively different maximum and minimum loan amount criterion as compared to NRI home loans

For granting of home loan and other purposes the following criteria are used to judge whether an applicant is a NRI or not.

NRI's are:

  • Indian citizens who stays abroad for employment/carrying on business or vocation outside India
  • Person who stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad
  • Persons posted in UN organizations
  • Officials deputed abroad by Central or State Governments
  • Officials of Public Sector undertakings going abroad on temporary assignments
  • Indian Students studying abroad if their stay abroad is more than 182 days in the preceding financial year and they intend to stay abroad for an uncertain period when they go for studies.
  • Non-Resident foreign citizens of Indian origin are treated on par with Non-Resident Indian citizens (NRI's)
Who is not an NRI?

  • Those who go abroad to receive training
  • People going abroad for tourism purposes
  • People travelling abroad for business promotion.
  • Individuals who go overseas for obtaining medical treatment
  • People travelling abroad for participating in cultural activities
  • Sportsmen going abroad to participate in international sports events
  • Crew members working for shipping corporations and airline companies posted in India and those companies whose registered offices are in India.
  • Indians or persons of Indian origin residing in Nepal, Bhutan, Pakistan, Bangladesh


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