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Who
is an NRI?
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Under
the Foreign
Exchange Regulation
Act of 1973,
Non-Resident
Indians are:
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Indian
citizens who
stay abroad
for employment
or for carrying
on business
or vocation
outside India
or for any other
purpose in circumstances
indicating an
indefinite period
of stay abroad.
(OR) |
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Government
servants who
are posted abroad
on duty with
the Indian missions
and similar
other agencies
set up abroad
by the Government
of India where
the officials
draw their salaries
out of Government
resources. (OR) |
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Government
servants deputed
abroad on assignments
with foreign
Governments
or regional/international
agencies like
the World Bank,
International
Monetary Fund
(IMF), World
Health Organization
(WHO), Economic
and Social Commission
for Asia and
the Pacific
(ESCAP),(OR)
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Officials
of the State
Government and
Public Sector
Undertakings
deputed abroad
on temporary
assignments
or posted to
their branches
or offices abroad.
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Guidelines
Issued by the
Reserve Bank
of India for
grant of Housing
Loans to NRIs.
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The
Reserve Bank
of India (RBI)
has issued certain
guidelines for
granting loans
to Non-Resident
Indians. The
guidelines are: |
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The
loan amount
shall not exceed
85% of the cost
of the dwelling
unit. |
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Own
contribution,
which is the
cost of dwelling
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. |
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Repayment
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. |
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For what purposes
are loans available
to NRIs? |
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NRIs
can avail loan
for buying or
constructing
a new home,
extending an
existing home,
to undertake
improvements
in your home
or even to buy
a plot of land
from Development
Authorities. |
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Do
non-resident
Indian citizen
require permission
of Reserve Bank
to acquire residential/
commercial property
in India?
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No.
An Indian
citizen resident
outside India
does not require
any permission
to acquire
any immovable
property in
India other
than agricultural/
plantation
property or
a farmhouse.
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Where
can permission
be taken for
acquisition
of agricultural
land/plantation
property / farmhouse
by any person
resident outside
India or foreign
nationals of
Indian origin?
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All
requests for
acquisition
of agricultural
land/plantation
property / farmhouse
by any person
resident outside
India or foreign
nationals may
be made to The
Chief General
Manager, Reserve
Bank of India,
Central Office,
Exchange Control
Department,
Foreign Investment
Division (III),
Mumbai 400 001.
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Do
non-resident
Indian citizen
require permission
of Reserve Bank
to acquire residential/
commercial property
in India? |
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No.
An Indian
citizen resident
outside India
does not require
any permission
to acquire
any immovable
property in
India other
than agricultural/
plantation
property or
a farmhouse. |
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Who
is a Person
of Indian Origin
(PIO)? |
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A
person of
Indian origin
is an individual
(not being
a citizen
of Pakistan
or Bangladesh
or Sri Lanka
or Afghanistan
or China or
Iran or Nepal
or Bhutan),
who: - At
any time,
held Indian
passport;
- Who or either
of whose father
or whose grandfather
was a citizen
of India by
virtue of
the Constitution
of India or
the Citizenship
Act, 1955
(57 of 1955). |
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What
loans is a PIO
eligible for?
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The
PIO can avail
loans for home
purchase and
home extension.
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What
are the eligibility
criteria for
PIO? |
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Documentary
evidence and
confirmation
that the individual
is a person
of Indian origin. |
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What documents
would be required
to prove my
eligibility? |
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A photocopy
of the PIO card
OR |
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A photocopy
of current passport
indicating birthplace
as 'India' |
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A photocopy
of Indian passport,
if held by the
individual earlier
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A
photocopy of
parents/grand
parents Indian
passport/birth
certificate
/ marriage certificate. |
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Are
there any special
terms and conditions
for a loan to
a PIO? |
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All
other terms
and conditions
(relating to
rate of interest
term of loan,
fees, appraisal
norms, own contribution,
remittances
and repayment
of loan) remain
the same as
those for loans
to NRIs. |
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What
security would
I have to offer
for the loan? |
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Security
for the loan
will be mortgage
of the dwelling
unit financed
and any other
additional security
as may be required. |
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What is a PIO
card? |
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A
PIO card is
issued to a
"Person
of Indian Origin
", by the
"Indian
mission"
(Embassy of
India / High
Commission of
India / Indian
Consulate in
a foreign country.
It extends to
the cardholder
certain facilities,
as prescribed
by the Ministry
of External
Affairs, and
is valid for
a period of
20 years. |
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Do
I need to be
physically present
to avail a loan?
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No,
the power of
attorney can
apply and carry
out the necessary
formalities
on behalf of
the client.
Along with the
loan application,
the format for
the POA would
also be provided.
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How
do I make the
payment? |
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The
borrower shall
pay the installment
of loan, interest,
other charges,
by remittances
from outside
India through
normal banking
channels or
out of NRE/
FCNR/ NRO/ NRSR
account in India.
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Do
I have to have
a PIO card for
the loan? |
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It
is not mandatory
for an IPO to
have a PIO card
issued in his
name, to apply
for the loan.
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Can
I buy property
anywhere in
the world? |
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The
loan is only
for property
present in India.
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Is Bank finance
available for
properties all
over India? |
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Yes.
You can avail
of a loan from
Bank to acquire
a property anywhere
in India. |
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Who
can be co-applicants? |
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The
proposed owners
of the property,
in respect of
which you are
seeking financial
assistance,
will have to
be the co-applicants.
However, all
co-applicants
need not be
co-owners. |
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In
what form do
I make payments
to Bank? |
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Payment
of fees, charges,
Pre-Emi, additional
interest and
incidental charges: |
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Cheque
drawn on an
Non-Resident
(Ordinary)/
Non-Resident
(External)/Non-Resident
Special Rupee
account |
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Post dated
cheques drawn
on any of the
above accounts
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Demand
draft/pay order
from an Non-Resident
(Ordinary)/
Non-Resident
Special Rupee
account |
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FCNR account
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Funds transfer
from abroad
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Cash payments
are not to be
accepted. |
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Customers
making applications
at Dubai office
are required
to make fee
payments in
UAE Dirhams
through cheque/demand
draft. |
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Payments
towards EMI: |
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Payments
towards EMI
are to be made
through post
dated cheques
drawn on an
Non-Resident
(External)/
Non-Resident
(Ordinary)/
Non-Resident
Special Rupee
account. |
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Clearance
of arrears by
defaulters |
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An
NRI who is not
repaying his
loan regularly,
may subsequently
opt to clear
his outstanding
loan through
direct remittances
from abroad
through normal
banking channels,
from the Non-Resident
(External) account
in India or
through his
Non-Resident
(Ordinary)/
Non-Resident
Special Rupee
account /cash
(withdrawn from
his Non-Resident
(Ordinary)/
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Buyers
/ Sellers 
