NRI home loan rules: who may borrow and which property NRIs and OCIs may buy
Updated
What are the RBI rules for NRI home loans?
Under FEMA an NRI or OCI cardholder may buy any property in India except agricultural land, a farm house or plantation property, and may take a rupee housing loan for a home on the same terms as a resident (RBI Master Direction, updated 8 September 2026). The loan is repaid only from money sent from abroad, a non-resident account, rent on the home or a relative in India.
Official rule: Loan amount, margin (down payment) and repayment period are the same as for a resident borrower (para 4(1)). (source, checked 2026-10-21)
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Can an NRI buy property in India?
Yes: an NRI or an OCI cardholder may buy any immovable property in India other than agricultural land, a farm house or plantation property (FEM (Non-debt Instruments) Rules 2019, rule 24(a)) (source, checked 2026-10-21). The price must come from money sent through banking channels or from a non-resident account — never traveller's cheques or foreign currency notes (source, checked 2026-10-21).
| Can an NRI or OCI … | Answer | Source |
|---|---|---|
| Buy a home or commercial property | Yes | (source, checked 2026-10-21) |
| Buy agricultural land, a farm house or plantation | No | (source, checked 2026-10-21) |
| Receive property as a gift (not farmland) | Only from a relative | (source, checked 2026-10-21) |
| Inherit any property, farmland included | Yes | (source, checked 2026-10-21) |
| Pay the price in cash or traveller's cheques | No | (source, checked 2026-10-21) |
| Rupee housing loan for a home | Yes, at par with residents | (source, checked 2026-10-21) |
| Loan paid into an NRE / FCNR(B) account | No | (source, checked 2026-10-21) |
Can an NRI inherit or receive property as a gift?
An NRI or OCI may inherit any property, agricultural land included (source, checked 2026-10-21), and receive property other than farmland as a gift from a relative (resident, NRI or OCI) (source, checked 2026-10-21). A foreign spouse who is not an NRI or OCI may buy one property jointly with the NRI or OCI spouse (source, checked 2026-10-21).
Who can give an NRI a home loan?
A bank authorised to deal in foreign exchange, or a housing finance institution approved by the National Housing Bank, may give a housing loan in rupees to an NRI or a PIO to buy a residential home in India (source, checked 2026-10-21). Not every housing finance company may lend to NRIs — ask the lender whether it may. Loans against commercial property fall outside this NRI route.
What are the terms of an NRI home loan?
- The same as a resident's: loan amount, margin (down payment) and repayment period at par (source, checked 2026-10-21) — so the 90% / 80% / 75% caps apply (source, checked 2026-10-21) (calculator).
- In rupees, not paid into your NRE, FCNR(B) or NRNR account (source, checked 2026-10-21).
- Secured by a mortgage on the home bought, and if needed a lien on other assets in India (source, checked 2026-10-21).
- Interest rate: whatever the lender sets within RBI's general rules — there is no NRI rate.
How can an NRI repay a home loan in India?
Only from money sent from abroad, from your NRE, FCNR(B), NRNR, NRO or NRSR account, from rent on the financed home, or by a relative in India paying into the loan account (source, checked 2026-10-21). Instalments paid from abroad or from NRE/FCNR(B) count as foreign exchange when you later sell and send the money out (source, checked 2026-10-21).
I took the loan as a resident and moved abroad — what now?
The lender may let the loan run to its original maturity; repayments then come from abroad or a non-resident account (source, checked 2026-10-21).
Can an OCI cardholder get a home loan?
The RBI rule says "NRI or PIO", and in RBI's rules on non-resident accounts a PIO includes an OCI cardholder (source, checked 2026-10-21) — so the same housing-loan route is open to OCI cardholders. More: OCI cardholders.
Questions people ask
Can an NRI buy agricultural land in India?
No — in India, an NRI or OCI may buy any property except agricultural land, a farm house or plantation property; such land can only be inherited.
Can an NRI pay for property in cash?
No — in India, the price must come through banking channels from abroad or from a non-resident account; traveller's cheques and foreign currency notes are not allowed.
Can my parents in India pay my home loan EMI?
Yes — a relative in India may pay into the loan account by account-to-account transfer.
Can an NRI get a loan for commercial property in India?
In India, not under the NRI housing-loan rule, which covers a residential home; other loans follow the lender's own board-approved policy.