NRI Desk


1) Who is an NRI?

An Indian citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. Non-Resident foreign citizens of Indian origin are treated at par with Non-Resident Indian citizens.

2) Who is a PIO?

A person of Indian origin means an individual who:

  • Held an Indian passport at any time, or
  • Who or whose father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.

3) What are the various facilities available to NRIs?

The facilities available to NRIs are as follows:

  • Maintenance of bank accounts in India
  • Investments in securities/shares of, and deposits with, Indian firms/companies
  • Investments in immovable properties in India

4) Who can purchase immovable property in India?

  • At any time, held Indian passport, or
  • Who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955. The general permission, however, covers only purchase of residential and commercial property.

Under the general permission available, the following categories can freely purchase immovable property in India:

  • Non Resident Indian (NRI)
  • Person of Indian Origin (PIO)

5) Can NRIs acquire or dispose residential property by way of gift?

Yes, the Reserve Bank has granted general permission to NRIs to acquire or dispose of NRI India properties by way of gift from or to a relative who may be an Indian citizen or a Person of Indian Origin (PIO) whether resident in India or not.

6) Can NRIs obtain loans for purchase of a house/flat for residential purpose from financial institutions providing housing finance?

The Reserve Bank has granted general permission to financial institutions providing housing finance and authorized dealers to grant housing loans to NRI for purchase of a house/flat for self occupation subject to certain conditions. Criteria regarding the purpose of the loan, margin money and the quantum of loan will be at par with those applicable to resident Indians. Repayment of the loan should be made out of inward remittance through banking channels or out of funds held in the investor’s NRE/FCNR/NRO accounts

7) For what kind of property is an NRI eligible for home loan?

A home loan is sanctioned to the NRIs for any of the following housing finance schemes.

  • To purchase a house either ready built, under construction or from a second owner
  • Forself construction of a property on a plot of land
  • For renovation or improvement of an existing property in India

8) What is the eligibility for obtaining NRI home loans?

Your eligibility is calculated in the same way as it is calculated for Resident Indians i.e. maximum 48 times the NMI or 4 times the NAI. Emphasis is laid on the following criteria in the appraisal of an NRI:

  • Qualifications: The NRI applicant has to be a graduate
  • Current job profile and past experience
  • Probability of continuing abroad for the loan tenure
  • Holding a job for at least 1 year in a reputed company

9) How is the mode of payment for an NRI home loans?

The loan towards the house has to be paid upfront for the entire tenure of the loan by way of direct remittances from abroad through normal banking channels or from such accounts as may be permitted by RBI from time to time. As of today, the payments are done through NRO, NRE, NRNR and FCNR accounts.

10) What are the tax benefits applicable to Non-Resident Indians?

No tax benefits are available from NRI customers unless you file returns and thereby become eligible to avail the tax benefits.

11) What are the documents required for obtaining NRI home loans?

NRIs are required to submit additional documents than is normally required for a Resident Indian

  • A copy of the passport
  • A copy of the works contract
  • the power of attorney
  • Salary certificate or statement of account of last 12 months of NRI / Parent / Spouse etc.