Canara Bank, the Indian-government owned bank, has launched two housing loan schemes designed for non-resident Indians and high net worth individuals.

The move is in response to growing demand for housing loans from both segments, with enquiries by NRIs rising by 20 per cent from 2012 and those by HNWIs for homes worth above Rs1 crore also increasing. The HNWI scheme is available only to those with at least Rs25 lakh in gross annual income. 

The bank says it will waive processing charges for both until 31 October 2013.

The Indian real estate market is experiencing a boom after the Reserve Bank of India decided to slash the annual ceiling on capital outflow from the country from $200,000 to just $75,000, encouraging many property investors to stay put and instead place their money on local ventures. Most of these investors are high net worth individuals.