NRI FAQs

NRI

At Innovative Construction Properties, we strive to maintain global standards for quality and customer satisfaction. As the India success story unfolds, we cater to a lot of customers from around the world who place their trust in our projects. As you buy a new home, these questions will answer all common queries about buying and owing a property in India. Use this guide to acquaint yourself with rules, laws and important information.

What is the definition of Non Resident Indian (NRI)?

NRIs can be defined as:
  1. Indian citizens who stay in a foreign country for employment
  2. Indian citizens carrying on their businesses or vocations
  3. Indian citizens abroad for any other purpose in the circumstances indicating a definite intention to stay outside India for an indefinite period
NRIs can also be:
  1. Indian citizens working abroad on assignment with foreign governments or international agencies
  2. Officials of central and state government and public sector undertakings deputed abroad on temporary assignments or posted to their offices abroad
  3. Indians who have settled abroad permanently or gone abroad on immigration
    Non-resident Indians become residents of India once they come back to India to engage in employment, for carrying on any business or vocation, or for any other purpose indicating a definite intention to stay in India for an indefinite period.

Are NRIs/foreigners permitted to own property in India?

NRIs / foreigners are permitted to own property in India in most of the categories. There are certain categories like agricultural land, land for housing project etc., wherein NRIs/foreigners are specifically not entitled to own property.

For what kinds of property is a NRI eligible for Home loans?

A home loan is sanctioned to the NRIs for any of the following housing finance schemes:
  1. To purchase a house either ready-built, under construction or from a second owner.
  2. For self-construction of a property on a plot of land.
  3. To finance the purchase of a plot of land allotted by a society / development authority.
  4. For renovation or improvement of an existing property in India.

What is the eligibility for obtaining NRI Home Loans?

Your eligibility is calculated in the same way as it is calculated for resident Indians. More emphasis is laid on the following criteria in the appraisal of a NRI case:
  1. Qualifications - the NRI applicant has to be graduate
  2. Current job profile and Past experience
  3. Probability of continuing abroad for the loan tenure
  4. Probability of servicing the loan with an extended tenure in case you have to return to India.

Does a foreign citizen of non-Indian origin require permission from the Reserve Bank of India (RBI) for acquisition of immovable property?

Yes. The RBI may grant permission to a foreign citizen of non-Indian origin/foreign companies if the property is purchased for residential use and the consideration is paid by way of foreign exchange.

What is the repayment period for a NRI Home Loan?

The housing finance offered to NRIs normally do not exceed 5 years. However, some HFCs offer loans for a term of 7 years. The repayment for the loan is by way of EMIs. The EMIs begin only after the entire loan is disbursed. In case of a part disbursement, you pay simple interest at the rate applicable on the loan amount that is disbursed to you.

Does a foreign citizen of non-Indian origin require permission from the Reserve Bank of India (RBI) for acquisition of immovable property?

Yes. The RBI may grant permission to a foreign citizen of non-Indian origin/foreign companies if the property is purchased for residential use and the consideration is paid by way of foreign exchange.

What are the Tax Benefits applicable to Non-Resident Indians?

No tax benefits are available for NRI customers unless you file returns and thereby become eligible to avail of the tax benefits as mentioned under Home Loans.

Who is a co-applicant? Is a co-applicant mandatory for a loan?

A co-application is the co-borrower of the loan. A co-applicant is mandatory if you want to apply to our India Home Loan.