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RBI Guidelines

The Reserve Bank of India (RBI) has clarified that Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO), purchasing immovable property in India must pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country.

The NRIs and Resident Indians can also acquire immovable property in India other than agricultural property, plantation or a farmhouse. It has issued certain directives for sanctioning home loans to Non-Resident Indians.

The guidelines provided are:

The home loan amount should not exceed 85% of the cost of the dwelling unit, As the remaining 15% needs to be provided by one’s own contribution towards the cost of unit financed

The cost of dwelling unit which is by own contribution financed less the loan amount, can be met from direct remittances from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and/ or Non-Resident (Ordinary) [NR (O)] account in India

However, repayment of the loan, comprising of the principal and interest including all the charges are to be remitted to the HFC from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and /or Non-Resident (Ordinary) [NR (O)] account in India

The repayment option for NRIs is that they can pay through the funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999, and the regulations made by the RBI from time to time.

NRI home loan checklist

High on nostalgia and now high on returns, real estate is an investment option that cannot go wrong. If you are a Non-Resident Indian (NRI) planning to invest in a dream home in India, this is perhaps the best time to go ahead with your plans.

Why now?

The Reserve Bank of India (RBI) and the central government have announced a slew of offers to attract more NRI investment in the real estate sector. The depreciation of the rupee against the dollar too works in favor of the NRIs. And that is not all, most of the real estate development firms in India are going all out to woo the NRIs with attractive discount options.

Who can avail of the loan?

A Non-Resident-Indian can avail of a home loan for investment in India from any of the leading banks and other financial agencies. You can be a salaried professional, or a self-employed person or a business person to avail of these home loans. A Person of Indian Origin (PIO) can also avail of the loans, provided, they meet the stipulated requirements.


A bank will need :
The KYC documentation which includes a proof of identity, ideally the valid passport, copy of the visa for the continuance of employment, valid address proof and the photographs. If you are a salaried professional, we will require an embassy attested proof of salary and if you are a non-salaried NRI, we will require your balance sheet/profit and loss account for the last two years.

Who is a Non Resident Indian (NRI)

An Indian citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. organisations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-temporary assignments are also treated as non-residents). Non-resident foreign citizens of Indian origin are treated on par with non- resident Indian citizens (NRIs)..

Who is a Person of Indian Origin (PIO)

A Person of Indian origin means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who:• held an Indian Passport at any time, or • who or whose father or paternal grand father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955

Who can purchase immovable property in India?

Under the general permission available, the following categories can freely purchase immovable property in India: i) Non-Resident Indian (NRI) – that is a citizen of India resident outside India ii) Person of Indian Origin (PIO) – that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who 1. at any time, held Indian passport, or 2. Who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955). The general permission, however, covers only purchase of residential and commercial property.

What is Power of Attorney?

A Power Of Attorney (POA) or letter of attorney is a written authorization to represent or act on another’s behalf in private affairs, business, or some other legal matter, sometimes against the wishes of the other. The person authorizing the other to act is the principal, grantor, or donor (of the power).A Power Of Attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property. A Power Of Attorney, or letter of attorney, is a document that authorizes another person, known as the agent or attorney-in-fact—usually a legally competent relative or close friend over 18 years old—to handle any combination of financial, legal and health care decisions. A power of attorney is also referred to as a POA. Generally, one chooses a POA as a provision if he or she becomes incapacitated.