NRI Guide

As a Non-resident Indian, if you are looking for lucrative investment opportunities, there is nothing better than real estate. Foreign Investment in India's real estate is highly encouraged. The Indian real estate market is expected to reach 8.48 US Billion Dollars by 2024. There couldn't be a time better than now to invest your saved pennies with a safe bait.

Let us understand the RBI guidelines for Foreign Investment in India's Real Estate Market:
  1. Purchase permission for residential/ commercial property.
    1. No permission is required for NRIs holding Indian passports.
    2. NRI's with foreign passports have to intimate RBI by filling IPI 7 form. This should be done within 90 days of a property purchase or consideration of final payment.
  2. SALE OF PROPERTY
    1. No permission is required to sell a property held by NRIs in India.
  3. REPATRIATION OF SALE PROCEEDS
    1. Repatriation of proceeds from the sale of residential property purchased on or after 26th May 1993 is allowed.
    2. 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 the final purchase deed or from the date of final payment.
    3. Application of repatriation (IPI-8) has to be done within 90 days of the sale of the property.
  4. INCOME FROM PROPERTY
    1. The rental income from property investment in India needs to be credited to the NRO account.

Home Loans

Financial assistance is available to NRI's for purchasing residential property in India.
  1. To be eligible, the applicant must have an Indian Passport.
  2. Eligibility Criteria:
    1. Anyone above 21 years and below the retirement age can avail of a home loan. If the retirement age is below 60 years, that shall count.
    2. Residential status:
      1. A salaried applicant must be abroad for a minimum of 1 year.
      2. A self-employed applicant must be abroad for a minimum of 3 years.
    3. Income:
      1. If an applicant wishes to avail of 11-15 years of the loan, he/ she must have a minimum qualification of Diploma/Graduate and 3 years of employment abroad. Even the professional qualification with 1 year abroad employment is valid.
      2. Depending on the country of residence, the person must meet the criteria of minimum income.
  3. 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.
  4. In case of a few institutions, Local guarantors will be required.
  5. Following documents are required for the application for a loan.
    1. Employment contract
    2. Latest salary slip
    3. Latest work permit
    4. Visa stamped on the passport
    5. Power of Attorney to a local individual
    6. Receipt of payments made for purchase of the property
    7. Agreement of Sale
  6. Interest rates and EMIs are subject to change without notice. Check with the financial institutions for prevailing interest rates.
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