Definition of Non Resident Indian (NRI)

Any Indian citizen who is residing in foreign country for the purpose of employment, business, vocation outside India and staying abroad under any circumstances for indefinite time duration under the Foreign Exchange Regulation Act of 1973.

Other Definitions for government employees who are posted in foreign country on duty of Government of India with the Indian missions or similar other agencies setup in foreign country by the Government of India where the officials gets their salaries along with perks outside of Government resources.

Or the Indian Government servants who are on deputation on foreign assignments with foreign governments or International agencies like IMF – International Monetary Fund, WHO- World Health Organization,  World Banks, Economic & Social Commission for Asia and Pacific (ESCAP).

Or Employees of State Government & PSU went on deputation on time bound (few years) assignments may be prolong as the assignment time duration increases.  

Definition of Foreign with Indian Origin

A foreign citizen is deemed to be of Indian origin if; he or she held Indian passport in any time duration he or she or his or her father or Paternal Grandfather was a citizen of India by virtue of the Constitution of India or the citizenship Act 1955.However these do not apply on the citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal.

Support while a NRI buy property in India

Property Type Buying Consent by Reserve Bank of India

Under the RBI’s general permission, an NRI cannot purchase any agricultural land or plantation property in India. Consequently, under the existing regulations, NRIs cannot purchase farmhouses in India.

The Reserve Bank of India, through a circular, has given general permission to NRIs, to purchase any residential or commercial property in India. The investor need not seek any specific permission from the RBI, nor is he required to send any communication or intimation in this regard to the RBI.

Property Buying Consideration

An NRI buying an immovable property in India does not require any special permission. However, the payment can‘t be made in foreign currency. NRIs can make the purchase using Indian currency, the Rupee, through funds received in the country by means of normal banking channels.

Property type desired by NRI – Identification

Find out the best societies and Flats in desired area according to budget.
Need to investigate the following factors also: Location
Crowed
Basic facilities
Luxury facilities
Construction Age
Construction Quality
Builder’s Credentials
property Potential
Banking Facility
Rental Value
Registration Charges
Other Taxes
Monthly Society Maintenance
Security and over all environment

Property Documents authenticity scrutiny

Property selling document chain

All clarification regarding property title

All deeds regarding the property in subject

Examine the deeds to establish the ownership of the property by seller

Previous Encumbrances and Loans

Property Floor Plans

Construction as per floor plans

Clearances from Municipality, Electricity, Water, Pollution, elevators, environment included all authorities’ clearances if required

Setback, side setback, height etc. as per building bye-laws

Property transfer fee, Authority Fee, Registration fee, document writer fee, if any; Property Tax, Electricity, water, maintenance pending payment etc.

Deal Execution

Deal execution without any issue and disturbance

Support while a NRI sell property in India

Selling a Property while sold property remitted out of India

In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a NRI-Non Resident Indian or PIO-Person of Indian origin, the authorized dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions should be satisfied:

The immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules/Regulations/Law in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act, 1999; 

NRIs/PIOs can affect remittance of sale proceeds of immovable property in India irrespective of the period for which the property was held. The sale proceeds allowed to be repatriated should, however, not exceed the foreign exchange brought in to acquire the said property. 

In case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties, if the property was purchased from funds held in NRE Account.

The amount sought to be repatriated abroad should not exceed the amount paid for acquisition of the immovable property in the foreign exchange received through normal banking channels or out of funds held in FCNR or NRE Account. In case of investment out of NRE Account the amount to be calculated as foreign currency is equivalent value as on the date of payment for acquisition of the said property.

Note: A Person of Indian Origin (PIO) means a foreign citizen (except a national of. Pakistan, Afghanistan Bangladesh, China, Iran, Bhutan, Sri Lanka and Nepal)

The loan amount shall not exceed 85% of the cost of the housing unit. 

Own contribution, which is the cost of housing unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.

Reimbursement of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.

Role of Authorize Dealer

Authorized dealers have been granted permission to grant loans to NRIs for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. Repayment of the loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investors’ NRE/FCNR/NRO accounts.

Authorized dealers can grant housing loan to NRIs where he is a principal borrower with his resident close relative as a co-applicant / guarantor or where the land is owned jointly by such NRI borrower with his resident close relative. Such housing loans availed in rupees can also be repaid by the close relatives in India of the borrower.

Requirements of Documents to Execute Home Loan Cases

Photocopy of the labor contract and English translation duly countersigned by your employer 

Latest salary certificate (in English) specifying the following: name (as it appears in the passport), date of joining, passport number, designation, perquisites and salary. 

Photocopy of labor card/identity card 

Photocopy of valid resident visa stamped on the passport 

Photocopy of monthly statement of local bank account for the last 4 months 

Property related documents