How to get a mortgage in India


Mortgages and personal loans are available to foreigners in India: Indian banks have recognized the potential of offering loans to expatriates and now offer special expat packages.

Applying for a mortgage still is a hassle in India, however, and the mountains of paperwork will test your patience. Although application requirements differ among banks in India, there are some regulations all banks have in common.

Mortgages in India

To receive a mortgage in India, you will usually have to open an account with the lending bank. In addition to the mortgage on a property, banks often demand deposit payments.

Documents that you will need to provide for the application include:

  • proof of identity (passport, driving license, etc.)
  • proof of address (utility bill, rental agreement, etc.)
  • proof of regular income (employment contract, bank statement, balance sheet, etc.)
  • proof of good credit standing
  • documents about the property (deed of sale, allotment letter)
  • some photographs of the property

Some banks in India also require you to have a close relative living in India to serve as your guarantor.

Interest rates on mortgages in India are higher than in the USA or Europe. They were between 9% and 16% in mid-2009. Indian banks also charge high commissions on financial services.

Personal loans in India

Personal loans are available for both specific and non-specific purposes. To get a personal loan from an Indian bank, you will usually need the same documents as for a mortgage.

Further reading

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