Any Indian who is either a citizen of India or a foreign nation of Indian origin who has been living outside India for the purpose of employment, business or any vocation and stays in India for less than 182 days will be called as NRI as per India’s Foreign Exchange Management Act (FEMA) 1999. 

According to Indian Constitution or the Citizenship Act , 1955. A person will have PIO status , who at any time held an Indian Passport, or who or either of his parents or grandparents were Indian citizen.This is not applicable for persons who are citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan.

No, an NRI or a PIO cannot buy a property in India jointly with a foreign citizen.

Yes. A person who is NRI /PIO can acquire residential / commercial property by way of gift from a person from a resident Indian or an NRI or a PIO.

With specific approval from the RBI , a resident outside India may hold an immovable property in India acquired through inheritance from a person resident outside India, As per FEMA guideline.

Yes. As per the provisions of Section 6(5) of the Foreign Exchange Management Act, 1999 a person resident outside India can hold immovable property acquired by way of inheritance from a person resident in India.

Under the general permissions available, an NRI/PIO may purchase residential/commercial property in India out of funds remitted to India through normal banking channels or through funds held in his NRE/FCNR (B)/NRO account. No transaction will be allowed outside India.

In case of residential properties, the repatriation of sale proceeds is restricted to not more than two such properties, if the property was purchased from funds held in an NRE Account. Additionally, the amount repatriated out of India should not exceed the amount paid for acquisition of the immovable property in the foreign exchange received through normal banking channels or from the funds held in FCNR or NRE Account.

Yes. A Foreign National of non-Indian origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can acquire residential properties on lease in India. If the lease does not exceed five years, he/she does not require any prior permission from the RBI.

Yes, the RBI has granted general permission for sale of property. The remittance should be made to a bank However, where another foreign citizen of Indian origin purchases the property, fundstowards purchase consideration should either be remitted to India or paid out of balances in non-resident accounts maintained with banks in India.

No, NRIs don\'t require consent from the RBI to buy an immovable property in India.

The eligibility is calculated in the same way as it is done for resident Indians with special emphasis on:
  • Qualifications - Graduate (minimum)
  • Current job profile and work experience
  • Chances of continuing abroad for the loan tenure
  • Chances of servicing the loan with an extended tenure in case the applicant needs to return to India

No tax benefits are available for NRI's unless you file your returns in India.

Apart from the documents mentioned under the home loan section for Indian citizens, NRIs are required to submit a few additional documents as well. These include:
  • A copy of the passport
  • A copy of the works contract or the labor card
  • The power of attorney (POA). (POA is required because the borrower is not based in India

The housing loan needs to be paid upfront for the entire tenure of the loan by way of direct remittances from abroad through normal banking channels or from other financial accounts as may be permitted by RBI. Generally, payments are done through NRO, NRE, NRNR and FCNR accounts. These accounts change on the basis of RBI regulations.

Home loan offered to NRIs do not exceed 5 years in major cases. However, some financial institutions offer loans for a term of 7 years as well. The repayment for the loan is done through monthly installments (EMI), which usually begin after the entire loan is disbursed. Cases which involve part disbursement, you need to pay simple interest at the interest rate applicable on the amount disbursed.

To purchase a house which is either ready to move in, under construction or bought from another owner, an NRI is eligible to apply for home loans. Additionally, NRIs can apply for home loans -
  • a. For construction of a property on a plot of land by self
  • b. To purchase a plot allotted by a society/development authority
  • c. For the purpose of renovation or improvement of an existing property in India

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