Home Finance Option for NRI buyers

Resources, for financing a real estate investment in India
The money for choosing a property in India, has to travel through banking channels only. Subsequently, the payment may not be tendered in the form of traveller’s cheque or overseas currency. An NRI can also use the money in his/her credit, in non-resident external (NRE) rupee or non-resident ordinary (NRO) or foreign currency non-resident (FCNR) account, maintained in India.

NRIs are allowed to get property in India, by availing home lending options in Indian rupees, from banks or housing financing companies. The home loan may also be granted by the Indian employer of the NRI employee, for the purpose of financing of the property and some retirement plans for peaceful and secured life.

Obtaining a home loan
As NRI investment in Indian real estate is merely allowed in residential or commercial properties, banks too, can financing only these properties. Practically all banks offer home loans to NRIs for buying a house or constructing one. One can also get a loan, for purchase of land (non-agricultural), for constructing a house in India.

The application for the home loan can be made online, as well as offline. The size of documents that need to be submitted, will rely on whether the NRI is a salaried employee or whether s/he is a sole proprietor. It will also differ, based on the NRI’s country of residence. Nevertheless, copies of one’s passport and australian visa, passport-sized photographs and substantiation of residence in the foreign county, will be required in all instances.

According to whether the NRI is salaried or a sole proprietor, s/he also offers to satisfy a minimum amount of stay in the country of present residence, to avail of your home loan. Banking companies may also refer to an acceptable co-applicant, or an NRI guarantor. The NRI guarantor too, has to submit documents pertaining to identity proof, address confirmation and income proof.

Examining the home loan
EMIs on the home loan can be paid through remittances from outside India, through a proper savings channel, or by debiting the NRE, or NRO, or FCNR account. In case the house is let-out, the rental yields can be used for servicing the NRI mortgage loan. Money transported to the NRO consideration from close relatives, can even be used for servicing the home loans. In circumstance the exact property is purchased for self-occupancy, the NRI can acquire a loan against the FCNR or NRE accounts deposits, up to Rs you crore, for servicing the home loan.

Remittances away of India
An NRI is allowed to repatriate some of the cash, just in case the property so acquired comes. However, the number of properties (whether purchased or inherited), which is why s/he can remit or send money to India, is restricted to two. Moreover, the quantity that can be repatriated, cannot go over the amount (denominated in foreign currency) received as remittances from outside India, because of purchase or servicing of the NRI home loan. Under normal circumstances, an NRI is allowed to remit some USD 1 million in a given time, away of India, from his NRE, NRO, or FCNR accounts, which includes the quantity remitted for sale of a house.