FAQs for NRIs

A Non-Residential Indian is a citizen of India who lives abroad for employment, business or vocation purposes for an uncertain amount of time.

NRIs do not require the permission of the Reserve Bank of India in order to purchase immovable property and can obtain loans for the purchase of such property from certain financial institutions. However, the repayment of the loan must be made within 15 years of taking the loan. Furthermore, NRIs must have stayed in India for a period of 182 days or more within an assessment year or they should have stayed in India for at least a total of one year or more.

NRI investors have different conditions for purchase than residents. He/she must be at least 21 years of age with a minimum of $2000 monthly income. An NRI is not allowed to make Equal Monthly Installments (EMI) through any source other than his/her NRE/NRO account. The eligibility of loan will be determined on a number of factors such as income stability, number of dependents, repayment capacity, cost of property etc. and can range from 5 lakhs to 1 crore. As in the case of a resident, an NRI can enhance his home loan eligibility by applying with a co-applicant who has a separate source of income.

An applicant will be eligible for a maximum of 85% of the cost of the property or the cost of construction as applicable and 75% of the cost of land in case of purchase of land, based on the repayment capacity of the borrower. Furthermore, the interest rates on home loans for NRIs are higher than those offered to residents. The amount differs by 0.25%-0.50%. Some Housing Finance Company’s also having an internally earmarked ‘negative criterion’ for NRI home loans. As such, the NRIs who hail from locations that are marked as being ‘negative’ in the books of HFCs, find it difficult to get a home loan.

Yes, foreign nationals of Indian origin, whether resident in India or abroad, have been granted general permission to purchase immovable property in India.

No permission is required by non-resident Indian nationals to acquire immovable Property in India.

The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks in India

The purchase of the flats can be financed from the fresh remittance through the normal banking channels or from payment from original non-resident account or from Non-resident (External) Accounts. Non-resident Indians who are citizens of India (India Passport holders) are eligible for housing finance for the acquisition of an immovable property or construction of a new house, or a flat for their occupation or for that of their family in India. But the HDFC also considers granting of loans to non-resident Indians even if they are abroad, provided a family member of his or her in India is made a co-borrower and a power of attorney is given to his representative in India.

The non-resident Indians who are staying abroad may enter into an agreement through their relatives and/or by executing the Power of Attorney in their favour as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or Developer, drafting and signing of agreements, taking possession, etc.) These formalities can be completed through some known person who can be given the Power of Attorney for this purpose. Power of Attorney should be executed on the stamp paper before the proper authorities in foreign countries. Power of Attorney cannot be drafted on the stamp paper bought in India.

No. Such income cannot be remitted abroad and will have to be credited to the ordinary non-resident rupee account of the owner of the property.

The approved method of sending remittances into India is through normal banking channels.

No