Refinance Home Loan in India

Posted by Frank Gogol

Millions of foreign nationals from India live in the U.S. and many still own property back home. Most Indians who live in the U.S. also took out home loans in India to purchase their property. If this is you, you might be wondering if there are cheaper or easier ways to repay your home loan.

Have you thought about refinancing your home loan you have in India in the U.S? It could provide the help you need to settle your debt faster and easier.

Is it Possible to Refinance a Home Loan in India in the U.S.?

So you are living in the U.S. but you still have a home loan in India. What can you do about it? Chances are you’ve been looking for ways to repay it faster and you might have encountered the concept of refinancing home loans. But, is it possible to refinance your home loan in India whilst you are still living in the U.S.?

The good news is yes, you can! You’ll just have to make sure you do it in a way which your credit provider back home supports.

4 Reasons to Refinance a Home Loan in India

The Indian financial services industry is booming. Some expect India to be the fifth largest banking sector in the world by the year 2020. But, that still doesn’t mean got the best deal back home and that there aren’t better options available elsewhere. Your chances of finding a better credit offer in the U.S. are very high.

Let’s look at the four reasons why you should consider to refinance your home loan in India.

Lower Interest Rates

Did you know when you refinance your loan you can probably lower the interest rate? Higher interest rates mean more expensive monthly payments and paying back more in the long run. Lower interest rates have less expensive monthly payments. Getting a lower interest rate is one of the best ways to lessen your monthly loan payments and save money in the long run.

Switch from Floating to Fixed Interest Rate

Your current loan in India may have a floating interest rate. This could have seemed beneficial in the long run if you hoped interest rates would drop. But floating interest rates make budgeting hard. Your monthly payments will change each time the interest rates in your country changes. You might start out with an interest rate that suits your budget, but it will rise when the interest rates in India are raised. Your monthly payment will increase and you might not be able to service your credit because of this. Or, you might end up paying a lot more interest than you expected.

If you refinance your home loan in India, you could possibly change to a fixed interest rate. Your budgeting becomes easier and you won’t have to fear when the interest rates are raised by the regulators.

Reduce Length of Loan Period

Having a long loan period means you have smaller monthly payments. If you work on a tight budget this is great. But, it also means that you have a longer period over which interest accrues on your loan, which makes your loan more expensive.

When you refinance your loan you might be able to shorten your loan period. Doing this will mean you save on the overall interest you repay over the lifetime of your loan.

Better Loan Terms

Your current lender has offered you a specific deal. This deal may require you to do a few things that you aren’t happy with. Or it has some administration fees that you don’t want to pay anymore. When you refinance your home loan in India you can choose a lender of your choice here in the U.S. that has loan terms you prefer.

You don’t have to be stuck with a financial service provider you don’t like. Refinance your loan and get terms that benefit you both financially and personally.

When Should You Refinance Your Home Loan in India?

The reasons for a home loan refinance are simple. You do, however, need to make sure you benefit from refinancing. The whole purpose of a refinance is to make your life easier. Count the cost and compare the refinancing offer with your current Indian credit deal before you just go ahead blindly.

Here is a list of factors that could indicate a home loan refinance would be a good option for you:

  • A lowered interest rate – If you are able to get a cheaper interest rate on a refinance deal in the U.S., refinancing will almost definitely be the right choice for you. You will save money and possibly also have a lower monthly repayment.
  • A switch to a fixed interest rate – The interest rate changes in India might wreak havoc on your floating interest rate and ultimately your budget. If your fluctuating interest rate is making you uncomfortable and you can get a fixed (lower) rate in the U.S., go for it.
  • Shorter loan period – Fewer loan payments and a shorter loan period helps you to save on the overall interest you repay. Just remember having a shorter loan period could mean larger monthly repayments, so budget accordingly.
  • Better service and terms – If the U.S. lender you are considering offers you better terms and conditions on your loans and their service is known to be better, refinancing could be the right choice. This could take away a lot of the stress surrounding your creditor management.
  • You can borrow more – Refinancing in the U.S. gives you the option to borrow even more if the lender offers you more credit. This could be a good choice if you, for example, need to do some upgrades or work around the house.
  • Build a credit history in the U.S. – Ultimately, having the option to start building a credit history in the U.S. can only mean more open doors for you in the future. Loan repayments in the U.S. helps you to build a credit report here which is required for certain financial services. It could also help you get better U.S. credit offers in the future.

How to Get a Stilt Personal Loan to Refinance Your Home Loan in India

If you are concerned that you won’t necessarily be able to get a better deal in the U.S. because you are a visa holder, we have good news for you. Stilt offers personal loans for you to use for whatever you deem worthy. Plus they focus on providing loans to immigrants and visa holders.

So, you can buy investment property in India or you can use your Stilt personal loan to refinance your home loan in India. You don’t even need a credit history in the U.S. to qualify. Read through these simple eligibility criteria and check whether you qualify.

Here’s how the process will work.


Apply online for the loan amount you need up to $25,000. Submit all the documentation listed that is necessary to complete your application.

Receive Your Offer

Someone will contact you within 24 hours of your application. Please supply the additional information they may need. Remember, stronger applications get better credit offers.

Soon you’ll receive a promissory note with your credit offer. Please sign and return the note if you want to accept the offer.

Loan Disbursement

The loan should be disbursed into your U.S. account (or as per your direct arrangement with your current lender) within 2-3 business days. Set up your loan repayment method and start enjoying the benefits of a U.S. lender’s services.

Refinancing your home loan with Stilt is that easy!

Why U.S. Lenders Don’t Want to Work with Visa Holders

Traditional banks and lenders in the U.S. have strict regulations and requirements. Non-resident Indians who want U.S. loans to buy Indian property or even to refinance their existing indian home loans could find it difficult to get a good deal in the U.S. Here are some reasons why U.S. lenders don’t want to work with visa holders.

Lack of Credit History

People in the U.S. on visas often lack a U.S. credit history. Lenders don’t have a reference by which they can judge your creditworthiness. So they don’t want to take the risk of you not honouring your loan commitment.

People on Visas Can Leave

You aren’t a citizen of the U.S. so there are many factors that may cause you to move back home. Lenders are scared that foreign nationals may leave the U.S. before they have repaid their loans. This is one of the big reasons U.S. lenders tend to decline non-resident loans.

No Access to a Co-signer

People from other countries have fewer close friends and family in the U.S. They struggle to find people with trusted credit reports in the U.S. who are willing to accept the responsibility of signing a loan with them. Banks often don’t offer loans to people who can’t guarantee to repay it and who don’t have a co-signer.

A Lack of Paperwork

People in the U.S. on visas sometimes don’t have the required documents necessary to apply for a loan. Work permits, valid visas and other documents to prove identification or creditworthiness is imperative for a loan application. People without these documents are often not considered for loans.

Fortunately, there are lenders like Stilt that make it easy for visa holders and immigrants to get loans in the U.S.

Personal Loans
 for Non-U.S. Citizens!

Check Loan Options

Loans for up to $35,000. No cosigner required. No prepayment penalty.


You don’t need to struggle with high interest rates and unfavorable loan terms in India. Refinance your home loan in India with a loan in the U.S. to get the credit deal you want. Apply today and enjoy the benefits of working with a U.S. lender.

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