The NRI Home Loan Guide 2026: Documents, Taxes, and Repatriation

NRI investment in Bangalore real estate has surged in 2026, driven by a stable rupee outlook and rental yields of 3.5–4.5% in prime corridors.

Under FEMA, NRIs and OCIs can freely purchase residential and commercial property in India — agricultural land, plantations, and farmhouses remain restricted.

Most Indian banks offer NRI home loans up to 80% of property value, with tenures up to 20 years. You'll need a valid passport, visa, overseas address proof, salary slips for the last 6 months, and a Power of Attorney executed in favour of a resident relative or trusted representative.

On the tax side, rental income is taxable in India and subject to 30% TDS. Repatriation of sale proceeds is allowed up to USD 1 million per financial year, subject to a CA-certified Form 15CA/CB filing.

Our recommendation: work with a locally-present advisor who can coordinate documentation, site visits, and registration on your behalf. The convenience premium is small; the mistakes it prevents are not.