Buying home in India not only provides security but also involves emotional sentiment for every NRI. The Indian Government has taken fair steps to make it easy for the NRIs to invest in property anywhere in India. RBI has specified one does not has to have special permission to buy residential or commercial properties in India. The purchase can be only made through certain banking accounts like NRE (non-resident external) account. A person who holds a NRE account in India is permitted to hold and maintain foreign currency earnings in Indian Rupees. All the funds, along with the accrued interest, are repatriable at free of cost, and also the interest earned is not taxable in India. NRO (non-resident ordinary) account, a savings account is where you can maintain and manage your income earned in India such as rent, dividends, pension etc. FCNR (foreign currency non-resident )account is a term deposit account that can be maintained by NRIs and PIOs in foreign currency. Thus, FCNRs are not savings accounts but fixed deposit accounts.
If an NRI purchases or sales a property in India, he is allowed to send some finance, however the number of properties acquired has to be maximum 2. NRIs can sell or gift an immovable property to anyone in India and also can gift or transfer properties other than the agricultural ones. The returnable amount cannot surpass the amount received as payment from outside India either for procurement or servicing of the NRI home loan. NRE,NRO or FCNR accounts can be used by an NRI to send money outside India and the limit should not be more than 1 million dollars.
NRIs can purchase properties in India, by availing home loans in Indian currency, from nationalised banks or financial companies. As an NRI, If you want to take a home loan, you can directly approach the bank or financial companies which provide attractive offers and interest rates for NRIs.
Home loans are available for various kinds of purchase, for example, construction and purchase of house, buying under construction, ready possession or new launch apartments or houses etc. Although there are certain conditions to avail a home loan, one must know the following criteria-
You can remit the down payment from your country of residence though your NRE/NRO account in India.
You can remit the principal amount and interest in a similar fashion.
Must be an Indian Citizen living for indefinite period.
Must be 21 years of age.
Must be a graduate.
Must have minimum monthly income as per requirement.
Banks provide loans to NRIs for purchase of land (non-agricultural), as well as for constructing a house. Application can also be made online and offline. The loan depends on whether the NRI is salaried or self-employed and also, if he/she meets the criteria of minimum stay in the country of present residence. A guarantor is also required and has to submit documents pertaining to identity proof, address proof and income proof. NRIs can get loan against FCNR or NRE account deposits of up to 1 crore for servicing of home loan, if the purchase of property is for self occupancy.
Author:- Koyel Ghosh