NRIs handbook to buying a home in India
With real estate being on an all-time boom and the fall in rupee, buying a property in India is the best investment for NRIs. In addition to this, every NRI dreams to have a place of their own back home.
Buying a property is fairly easy for NRIs in India but there are few points one needs to keep in mind before purchasing a property.
Important FEMA Rules for NRIs
RBI’s regulations for buying property in India are relaxed hence you do not need any prior permission before buying a property. You can also purchase as many commercial and residential properties as you want in India except for farmhouses, agricultural lands, and plantation plants. These properties can only be inherited or gifted.
Transactions Funding for NRIs
All transactions have to happen in Indian currency. NRIs can use their Non-Resident External (NRE), Non-Resident Ordinary (NRO), or Foreign Currency Non-Resident (FCNR) accounts for funding.
Home Loans for NRI in India
RBI allows up to 80% of the value of the property to be funded by financial institutes for any property that is registered with the National Housing Bank. Connecting NRIs, a leading portal for buying and selling for NRI properties also provides low-interest home loans for NRIs in India.
Eligibility for Home Loans
Only graduate NRIs with 2 years of work experience can avail of home loans in India. Apart from that NRIs are also required to submit documents such as valid visas, passport copies, work permit, work experience certificate, employment contract, and PIO card (Person of Indian Origin).
Power of Attorney
While purchasing an under-construction property the POA (power of attorney) should be transferred to the builder or any trusted party. A POA can complete any transactions, deed, mortgage or even sell the property on your behalf.
Repayment of the Loan
An NRI can only repay the loan through the NRE or NRO accounts by inward remittance from abroad. The transactions can only be conducted in the Indian rupee for home loans for NRI in India.
