NRI FAQs

There is no requirement to get permission from the RBI to acquire real estate in India even for non-resident Indian nationals. However, if they wish to purchase agricultural land, farmhouses or plantation lands in India, they would certainly have to take RBI’s permission.

Under the general permission, they can use the funds remitted through authorised banking channels or the money held in FCNR(B), NRE or NRO accounts in India. But, they must not use traveller’s checks, foreign currency or payments from foreign sources.

Yes, people of Indian origin residing in a foreign country can remit their rental income abroad. But, they have to follow some rules: the rental income remitted cannot be more than the rental amount earned, tax must be paid to the Indian government on the income thus generated, and the remittance must only be made via authorised banking channels.

They can certainly do so but for a maximum of five years. For a period more than that, they will have to get permission from the RBI.

No permission from RBI is required for an NRI or PIO (Person of Indian Origin) to sell their property to Indian residents or foreign nationals of Indian origin. But, there is one specific condition, that is, if a PIO wants to sell their land to another PIO, they must obtain approval from the Reserve Bank of India.

The documents required for obtaining NRI Home Loans are: application form, ID proofs (such as a valid passport, aadhaar card or a driving licence), address proofs, proof of NRI status, Also, income proof (salary slips and valid employment contract if the person is doing a job, and audited financial statements, income tax returns, and business continuity proof if the person is self-employed.) and property documents are required. Apart from this, they may need to grant a power of attorney if they cannot be physically present in India.

The procedure to buy immovable property by foreign nationals of Indian origin includes eligibility verification, making payments using authorised banking channels and providing the required documents. Besides, property valuation, drafting a sales agreement, paying stamp duty and updation of land records representing their ownership are also a part of this procedure. And, in case the person cannot be physically present in India, they might also have to grant a Power of Attorney.

Just like Indian residents, NRIs also have the privilege to take loans from banks or financial houses in India to purchase property. They can repay EMIs via Non-Resident External (NRE) accounts or even through Foreign Currency Non-Resident (FCNR) deposits.

Yes, but not directly. While they can inherit property from an Indian resident without any special requirement, they will have to get the Reserve Bank’s permission to purchase agricultural land, farmhouses or plantation property directly.

An in-depth market research must be conducted including a proper evaluation of the real estate trends, valuations and possible future developments if NRIs or PIOs wish to purchase property in India.

Yes, NRIs can get the same benefits as Indian residents, including deductions for principal repayment under Section 80C and interest on home loans under Section 24.

The maximum loan amount is typically determined by the NRI’s income and the lender’s policies. Banks typically provide 80–85% of the property’s value as a loan.

Yes, NRIs and resident Indians can jointly purchase property in India, but they have to abide by all applicable regulations.

NRIs can benefit from potential capital growth, rental income, tax benefits, and portfolio diversification by investing in Indian real estate.

NRIs cannot purchase Indian property with foreign currency loans. Loans must only be in Indian rupees and obtained from Indian financial institutions.