NRIs can avail home loans for purchase of property in India. The tenure may extend from 7-20 years and 25 years in exceptional cases (Extension at the sole discretion of the bank).
NRIs can avail home loan for maximum 80-85 % of the value of property depending upon individual gross monthly earnings. This amount is up to 36-40 times of the Gross Monthly Income.
The repayment of the loans availed by NRI can be made only through the NRO Account and not through any other sources.
The banks stress on keeping first mortgage of property in their name and if the property is under construction, an additional security such as guarantee of third party is required. Third party can either be a resident or non resident of the country.