Home Loan For Seafarer. Are you Working In Merchant Navy?

As most of the time seafarer spends his time out at sea so he is unaware of loan facilities available to him. While at sea he tries to get information on loans but rarely does he finds the right guidance.

While at home he must spend quality time with his family rather than going from one bank to another in search of information. To make the process easier we will try to explain the process to get a hassle-free loan from the bank and will solve many queries which comes to mind while going for a home loan.

Minimum Income

If you are sailing as a Third officer or Fourth engineer then you are good to go for a home loan.

That means when you are earning more than 1000 USD you are good to go. Below that income, we will not suggest you go for a loan as you must be having other commitments in life. Your vacation can also extend. So plan well before going for any loan.

Eligibility Criteria

Bank will try to know from your profile whether you can repay or not. If it feels that you have the potential to pay back the loan is issued.

The loan term can be 25 to 35 years depending upon your age and approximate retirement age.

To be precise it depends upon various factors like your monthly income, current age, credit score, fixed monthly financial obligations, credit history, retirement age, etc.

Details of Various Banks Are Given Below.

SBI6.90% – 7.50% p.a.
Bank of Baroda6.85% – 7.20% p.a.
PNB Housing Finance Limited7.50% – 9.70% p.a.
Axis Bank6.90% – 8.55% p.a.
HDFC Ltd.6.90% – 8.00% p.a.
Canara Bank6.90% – 8.90% p.a.
Federal Bank7.90% – 8.05% p.a.
Bank of India Star Pravasi Home Loan6.90% onwards
Indian Overseas Bank7.05% – 7.30% p.a.
Indiabulls8.99% p.a.
ICICI NRI Home loan6.90% – 8.05% p.a.

Few more deatails on home loan

  • BOI Star Pravasi Home Loan:
    • Loans available for both salaried and self-employed individuals
    • Flexible repayment option of up to 30 years
    • High margin of financing of up to Rs.5 crore
    • Attractive rate of interest
Interest Rate6.90% p.a. onwards
Loan AmountRs.30 lakh
Tenure25 years
Foreclosure/Prepayment ChargesNil
Processing Fee0.25%
  • SBI NRI Home Loan
    • Low interest rates
    • Loans available for both salaried and self-employed individuals
    • No hidden charges
    • No prepayment penalties
    • Repayment tenure of up to 30 years
    • Processing fee waived till May 31
Interest Rate6.90% to 7.50% p.a.
Loan AmountRs.30 lakh
Tenure25 years
Foreclosure/Prepayment ChargesNil
Processing Fee0.35%
  • HDFC NRI Home Loan
    • Minimal paperwork
    • Home Loan Services available in the country you reside
    • Property Search Advisory Services available
Interest RateStarts from 6.90% p.a.
Loan AmountRs.30 lakh
Tenure25 years
Foreclosure/Prepayment Charges2%
Processing Fee1.25%
  • Axis Bank NRI Home Loan
    • Competitive interest rates
    • Minimal processing fees
    • Repayment tenure of up to 25 years
    • Minimal documentation required
Interest RateStarts from 6.90% p.a.
Loan AmountRs.30 lakh
Tenure25 years
Foreclosure/Prepayment ChargesNil (floating rate loan) 2% (fixed rate loan)
Processing Fee1%
  • PNB Housing Finance Limited NRI Home Loan
    • Attractive interest rates
    • Multiple repayment options
    • Hassle-free documentation and quick disbursal
    • Robust service delivery model
Interest Rate7.50% p.a. onwards
Loan AmountRs.30 lakh
Tenure25 years
Foreclosure/Prepayment Charges
Processing Fee
  • ICICI NRI Home loan
    • Repayment tenure of up to 30 years
    • Specifically designed for NRIs looking to purchase or construct a house/property
    • Minimum income of 26,000 USD for Merchant Navy employees and 42,000 USD and 84,000 AED for others
Interest Rate6.90% p.a. onwards
Loan AmountRs.5 crore
Tenure30 years
Foreclosure/Prepayment Charges0% – 4%
Processing Fee0.50% – 2%
  • IOB NRI Home Loan
    • Competitive interest rates
    • Loans available for construction, purchase, and renovation
    • Flexible repayment tenures
    • High margin of financing
    • Hassle-free documentation process
Interest Rate7.05% p.a. onwards
Loan AmountRs.15 lakh
Tenure15 years
Foreclosure/Prepayment Charges0% – 2%
Processing Fee0.50%

Other Fees and Charges for NRI’s

Processing FeeUp to 2% of the loan amount
Foreclosure ChargesUp to 4% of the total outstanding
Loan Conversion FeesAs per the bank’s discretion
Cheque Return ChargesUp to Rs.500 per instance
Duplicate Statement Issuance ChargesUp to Rs.250 per instance
Title Documents Photocopy Issuance ChargesUp to Rs.250 per instance
Duplicate NOC Issuance ChargesUp to Rs.500 per instance
Credit Report Issuance ChargesUp to Rs.50 per instance

Mandatory Documents

 Must Have Documents Required for Home Loan in 2021

  • Loan application form.
  • 3 photographs passport sized.
  • Identify proof
  • Residence proof
  • Bank Account Statement/Passbook for last 3 to 6 months.
  • Signature verification by bankers of the applicant.
  • Liabilities statement and Personal Assets.
  • Property detailed documents
  • Salary Certificate (original) from employer. (salaried individuals)

List of Documents Required for NRI Applicants

  • Document establishing KYC.
  • Salary Certificate from employer stating in English the name (as per passport), designation, passport number, date of joining, latest salary.
  • Last 3 to 6 months’ salary slips reflecting variable components like incentives, overtime, etc.
  • Latest IT Returns (for applicants filing IT returns in the country).
  • For Self Employed NRIs, business documents like Trade License, Sponsor Agreement, Power of Attorney, etc.
  • Copy of Passport showing the page of residence visa.
  • Proof of employment by the Government of the residing country like work permit, labour contract, etc.
  • Documents related to the Property with cost estimates from an Indian Architect or Engineer.
  • For Salaried NRIs, income documents attested by embassy official required if there’s no documented evidence for salary credit or fund remittance to India is available.
  • Bank statements copies from overseas of the past 6 months.
  • Last 6 months’ NRO/NRE bank statement.
  • CDC copy with stamp on pages
  • If applicant is unavailable in the country at the time of signing documents, Power of Attorney needs to be produced by the person acting on their behalf.
  • If you do not file Tax reurn then not to worry. Normally not reaquired as of 2021.

List of KYC Documents for Home Loan Application

Some of the usual documents admitted as KYC are mentioned below:

  1. Photo Id Proof (Any One Required):
    • Passport
    • PAN Card
    • Driving License
    • Voters ID Card
  2. Residence Proof (Any One Required):
    • Electricity Bill
    • Ration Card
    • Telephone Bill
    • Rent agreement
    • Employment Letter
    • Passbook or Bank Statement with address
  3. Proof of Age:
    • PAN card
    • Passport
    • Birth certificate
    • Driving license
    • Bank passbook
    • Marksheet from 10th class

List of Documents Required for Loan Guarantor

•    Liabilities Statement and Personal Assets.

•    2 photographs passport sized.

•    Identify proof.

•    Residence proof.

•    Proof of business address.

•    Signature identification from present bankers.

List of Property Documents Required for Home Loan

1. Deed of Sale or Sale Agreement or Share Certificate (original) in case of a cooperative society.

2. Receipts for taxes paid for Building and Land, certificate of possession, and certified sketch of the location of property from revenue authorities.

3.   Allotment Letter from Society/Housing Board/Private builder.

4.   Receipts of advance payments for flat purchase.

5.   Certificate of Non encumbrance encompassing the last 12 years/30 years.

6.   Receipt of land tax payment and certificate of possession issued by revenue authorities.

7.   Permission letter from Appropriate Authority.

8.   Approved building plan (showing floor plan for flat purchase).

9.   Original No Objection Certificate issued under the ULC Act, 1976.

10. Copy of relative order if agricultural land is being converted.

11. No objection certificate (NOC) from Builder/Housing Society.

12. Detailed estimate of construction cost.

13. Letter from Society/Builder/Housing Board mentioning their bank and account details, for installment remittance.

14. Applicable for purchase of land plot, a declaration by loan borrower stipulating the date by which to construct a house.

15. Report from lawyer as per standard format.

16. Report stating the valuation of property in standard format by an empanelled valuer.

17. Post closure of loan, documents required for handover of original Property documents

18. Power Of Attorney for collecting original documents of Property.

19. In event of demise of the loan borrower:

20. Letter requesting handing over of Property documents from Legal Heir/Nominee(s).

21. Letter relinquishing the right to Legal Heirs/Nominees for Property documents handover.

Besides the ones mentioned above, the banks have the right to ask for any other document they deem necessary to the loan sanctioning and verification process.

The above list seems to be very big but not to worry if buying an apartment.

The loan amount is calculated on the basis of the number of days the seafarer spends on the ship. Generally, a seafarer sails for six to nine months on an average and for the rest of the period, they remain unpaid. So, the eligibility is calculated taking into account the net income of six to nine months for which he was on board ship.

For queries relating to car loan CLICK HERE

Loan repayment

Repayment of the loan can be made through the “Seafarer account” which is a Non-Resident External (NRE) savings account especially created for mariners.

Sometimes bank suggests to open new Account with them if salary account is on another bank.


  1. Can I make a joint application for a home loan?

Yes. It benefits you if joint account holder contributes to the repayment as well.

  • How can I repay the loan?

You can repay the loan through normal banking channels like NRE and NRO accounts. Some bank suggest to open new saving account as well if your salary account is with another bank

  • I have been living outside India for the last 6 months. Can I take an NRI home loan?

Yes you can take.

  • How much of financing can I get?

You can get financing ranging from 75% to 90% of the total property cost with NRI home financing plans. However, the final amount offered is at the sole discretion of the bank and will be based on your annual income, type of property you are planning to buy, and other such factors. Mostly its 80 % for buying apartment and 70% for buying a land or plot.

  • What’s the maximum tenure I can get?

The loan tenure may differ from bank to bank. However, most banks offer loans for a tenure of up to 35 years.

  • What do banks consider while sanctioning a home loan?

Banks consider the following:

  • Your annual income
    • Contract duration
    • Your credit score
    • The type of property you are planning to purchase or construct
    • Status of existing loans
    • The co-applicant’s credit score and other details

I Hope you like this article. Please visit again for further interesting articles. Thank you

Disclaimer– Author is not a certified financial advisor. Take your decision by consultation with some financial expert. The above article is only for education purpose.


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