Home Loan

  • NRIs can avail financial assistance in the form of housing loans, for purchasing residential properties in India. These loans are available through leading financial institutions such as but not limited to HDFC, LIC, Canfin Homes, Citibank, ANZ Grindlays, Vysya Bank, SBI, Corpbank and ICICI.
  • Some of the features of these loans include:
    • The applicant must be an Indian passport holder.
    • A salaried applicant should be abroad for at least a year, and a self-employed applicant for 3 years.
    • Loan amounts are available up to Rs 1 crore (or 85%) of the cost of the property, whichever is lesser. Processing and administrative charges extra.
    • Loan eligibility is decided by the repayment capacity of the individual. Repayment capacity takes into consideration income, age, qualifications, number of dependents, other income, and amounts.
    • For home loan tenures between 5 and 10 years, the rates of interest varies from 7.75% to 9%.
    • The Repayment period ranges from 5 to 20 years or on superannuation or on completing 60 years of age.
    • The loan is repaid in the form of Equated Monthly Installments (EMIs).
    • The security for the loan would be the equitable mortgage of the property financed. This is created by the deposit of the original title deeds of the property with the HFI.
    • Local guarantors will also be required in the case of a few institutions or buyers.
    • Copies of the following documents have to be submitted along with the application for the loan to the institution.
      • Employment contract
      • Latest salary slip
      • Latest work permit
      • Visa stamped on the passport
      • Power of Attorney to a local individual
      • Receipt of payments made for purchase of the property
      • Agreement of Sale
    • Interest rates and EMIs are subject to change without notice. Check with the financial institution you are opting with, for prevailing interest rates.
    • A salaried applicant should be abroad for at least a year, and a self-employed applicant for 3 years.

RBI Guidelines on NRI Investment in properties in India

  • PERMISSION FOR PURCHASE OF RESIDENTIAL PROPERTY / COMMERCIAL PROPERTY.
    • NRIs holding Indian passports - No permission required.
    • NRIs holding foreign passports - Intimation to RBI via form IPI - 7 within 90 days of purchase of property or final payment of consideration. Funds through NRE/NRO accounts.
  • SALE OF PROPERTY
    • Property held by NRIs in India can be sold. No permission is required from the Reserve Bank of India.
  • REPATRIATION OF SALE PROCEEDS
    • Repatriation of proceeds from sale of residential property purchased on or after 26th May 1993 is allowed.
    • The RBI will consider repatriation of the consideration amount remitted in foreign exchange for the acquisition of 2 properties. The sale has to have taken place after 3 years from the date of final purchase deed or from the date of final payment.
    • Application of repatriation (IPI-8) has to be done within 90 days of the sale of the property.
  • INCOME FROM PROPERTY
    • NRIs can let out immovable property in India. The rental income from the investment has to be credited to the NRO account.
    • Subject to changes from time to time.
    • E. & O.E.

Overseas payments

  • PERMISSION FOR PURCHASE OF RESIDENTIAL PROPERTY / COMMERCIAL PROPERTY.

    • NRIs holding Indian passports - No permission required.
    • NRIs holding foreign passports - Intimation to RBI via form IPI - 7 within 90 days of purchase of property or final payment of consideration. Funds through NRE/NRO accounts.