1.

Can NRIs obtain loans for acquisition of a house/flat for residential purpose from authorised dealers/financial institutions providing housing finance?

Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., and authorised dealers to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of the loan, margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investors‘ NRE/FCNR/NRO accounts.

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2.

Can Indian companies grant loans to their NRI staff?

Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passports subject to certain conditions.

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3.

Can authorised dealer grant housing loan to non-residents of Indian nationality where he is a principal borrower with his resident close relative as a co-obligant/guarantor or where the land is owned jointly by such NRI borrower with his resident close relative?

Yes. However, in such cases the payment of margin money and repayment of the loan instalments should be made by the NRI borrower.

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4.

What are the conditions that have to be fulfilled if one desires repatriation of sales proceeds?

Applications for repatriation of sale proceeds are considered, if, the sale takes place after a period of three years from the date of final purchase deed / from the date of the payment of final instalment of the consideration amount, whichever is later.

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5.

What is the procedure for seeking repatriation?

Applications for the permission for the remittance of sale proceeds should be made in Form IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property.

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6.

Can NRI's (Non Resident Indians) acquire / dispose off residential property by way of gift?

Yes, RBI has granted general permission to NRI's to acquire / dispose off properties upto two houses by way of gift from / to a relative who may be an Indian Citizen / a person of Indian origin whether residing in India / not, subject to the compliance with tax laws.

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7.

Can immovable property held in India, be transferred by way of gift to registered  charitable trusts / relatives in India?

Yes, general permission has been granted by the Reserve Bank to NRI's (Foreign Citizens) of Indian origin to transfer by way of gift Immovable Property held by them in India to relatives and Charitable Trusts/ Organisations subject to the condition that the provisions of any other law, including foreign contribution (regulation) act, 1976, as applicable are duly complied with.

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8.

Can NRI's acquire commercial properties in India?

Yes, under the general permission granted by Reserve Bank properties other than agricultural land / farm house / plantation property can be acquired by Foreign citizens of Indian origin, provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels / out of funds from the purchasers' NRE / FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in Form IPI 7 within a period of 90 days from the date of Purchase of the property / final payment of purchase consideration.

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9.

Can they dispose off such properties?

Yes, they can dispose off such properties.

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 10.

Can sale proceeds of such property be remitted out of India?

Yes, sale proceeds of such property can be remitted out of India and applications for the same should be made to the Central office of Reserve Bank within 90 days of the sale of property in Form IPI 8.

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11. 

Can commercial / Residential properties be given on rent if not acquired for immediate use?

Yes, RBI has granted general permission for the same. The rental income / proceeds of any investment of such income are eligible for repatriation.

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12. 

Can NRI's obtain loans for the acquisition of a flat for residential purpose from authorized dealers / financial institutions providing Housing Finance?

Yes, RBI has granted general permission to certain HFC's (Housing Financial Institutions) like HDFC, ICICI etc and authorised dealers for the provision of Housing loans to NRI's. The repayment of loan should be made within a period not exceeding 15 years out of inward remittances / out of funds held in the investors NRE / FCNR / NRO accounts.

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