NRI Help Desk - FAQs
Can NRIs obtain loans for buying a house/flat for residential purpose from financial institutions providing housing finance?
Reserve Bank has granted general permission to certain financial institutions providing housing finance to grant housing loans to non-resident Indians for acquisition of houses/flats for self-occupation subject to certain conditions.
Can authorized dealer grant loans to NRIs for acquisition of a flat/house for residential purposes?
Authorized dealers have been granted permission to grant loans to non-resident Indian nationals for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. However, repayment of the loan should be made within a period not exceeding 15 years out of inward remittance.
What are the schemes available to NRIs for direct investments in India with repatriation benefits?
In the new issues of shares/convertible debentures of Indian companies, there are direct investment schemes such as 24% scheme/40% scheme/100% scheme. Domestic Mutual Funds floated by public/private sector institutions/companies and bonds issued by public sector undertakings is also a good option.
Do non-resident Indian citizens require permission of The Reserve Bank to acquire residential/commercial property in ?
Do foreign citizens of Indian origin require permission of the Reserve Bank to purchase immovable property in for their residential use?
Yes. However, the Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in or abroad, to purchase immovable property in for their bonafide residential purpose. They are, therefore, not required to obtain separate permission of The Reserve Bank.
What are the formalities required to be completed by foreign citizens of Indian origin for purchasing residential immovable property in under the general permission?
They are required to file a declaration in form IPI 7 with Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.
Can foreign citizens of Indian origin acquire or dispose residential property by way of gift?
Yes, Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in or not, provided gift tax has been paid.
Can immoveable property held in , be transferred by way of gift to relatives/registered charitable trusts/organizations in ?
Yes General permission has been granted by Reserve Bank to non-resident persons (foreign citizen) of Indian Origin to transfer, by way of gift, immoveable property held by them in to relatives and charitable trusts / organizations subject to the condition that the provisions of all other laws, as applicable are complied with.
Can foreign citizens of Indian origin acquire commercial properties in?
Yes, under the general permission granted by The 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 or out of funds from the purchaser's 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.
Can they dispose of such properties?
Can sale proceeds of such property be remitted out of ?
Yes. Repatriation of original investment in respect of properties purchased by foreign citizens of Indian origin on or after 26 May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final installment of consideration amount, which ever is later. Applications for the purpose are required to be made to the Central Office of Reserve Bank within 90 days of the sale of property in form IPI.
Can the properties (residential/commercial) be given on rent if not required for immediate use?
Yes, Reserve Bank has granted general permission for letting out any immovable property in. The rental income or proceeds of any investment of such in-come are eligible for repatriation.
Can Indian companies grant loans to their NRI staff?
The Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passport subject to certain conditions. 18. Can an authorized dealer grant a housing loan to non-residents of Indian nationality where he is a principal borrower with his resident close relative as a co-signer / 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 loan installments should be made by the NRI borrower.
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