Question 1

How much property can an NRI afford in India?

Accepted Answer

NRI home loan eligibility is generally 40-50x your monthly net income (in INR equivalent). An NRI earning $8,000/month net (roughly Rs 6.6 lakhs/month at 83 INR/USD) can typically afford a loan of Rs 2.6-3.3 crore, which translates to a property value of Rs 3.5-4.5 crore with a 20% down payment. Use this calculator with your actual income figures for a precise estimate.

Question 2

What is FOIR for NRI home loans?

Accepted Answer

FOIR (Fixed Obligation to Income Ratio) is the maximum percentage of your net monthly income that banks allow toward all loan repayments combined. For NRI home loans, FOIR is typically 40-50%. If you earn $8,000/month net and have $500/month in existing EMIs, your available FOIR for a new home loan is ($8,000 x 45%) - $500 = $3,100/month.

Question 3

Can NRIs get 100% financing for Indian property?

Accepted Answer

No. Indian banks typically finance 75-80% of the property value for NRI buyers, requiring a minimum 20-25% down payment. For a Rs 1 crore property, you would need to arrange Rs 20-25 lakhs (approximately $24,000-$30,000) as the down payment from your NRE/NRO account or overseas remittance.

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