NRI

As per our Indian jurisdiction The Non-Resident Indians (NRIs) are considered under the Foreign Exchange Regulation Act, 1973. Every bank and housing finance company follows the RBI guidelines to define an NRI - The Indian citizen who holds a valid document like an Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is an NRI. This is the definition of the word NRI. The NRIs who are qualified for the housing loans in India is as below:

    • The 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.
    • The Indian 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.
    • The Indian 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).
    • The Officials of the State Government and Public Sector undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad.
    • The documents required for Resident Indians and NRIs for getting home loans are different in some respects. The home loans for NRIs are available for construction of new houses/ flats, purchase of old house/ flat addition/ alteration to an existing house and repairs/ renovation etc. NRIs can avail of loans by mortgaging an existing residential property. However, for availing home loans, NRIs have to fulfill certain terms and conditions, according to the provisions of the Income Tax Act of India. They should have stayed in India for a period of 182 days or more within an assessment year or they should have stayed in India for at least a total of one year or more.
    • The FDI policy that permits FDI up to 100% from a foreign/ NRI investor under the automatic route has boosted NRI confidence. The banks have attractive NRI housing schemes to accommodate the housing needs of NRIs. From the stables of HFCs, NRI housing finance plans with suitable repayment options are available as per the requirement.
    • The final updates on NRI is that the NRIs should take due care while selecting their home loan provider companies or HFCs. Considering the geographical distances involved, it is significant that loan seekers associate with a proactive and responsive HFC.

As the government continues to push through reforms (in the Land Acquisition Act, the Real Estate Regulatory Bill, relaxation of FDI rules, etc.), property continues to remain the best option for NRIs looking to invest in India.

BP Infra Group offers rewarding investment options in Mumbai. No project is executed without the help of the finest architects, designers and contractors, and the end result is always splendid. Delving deeper into the intricacies of real estate, we understand the needs of our clientele and realize that city life can often become a burden. Our homes are designed to interact with nature, as Louver glass is utilized to allow sunlight through but no sunrays, and as a result, dependency on natural light is maximized.

FAQ’S

An Indian Citizen who holds a valid Indian passport and stays abroad for employment/carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a Non-Resident Indian (NRI). Non-resident foreign citizens, of Indian Origin, are treated at par with Non-Resident Indians (NRI).

A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal) is deemed to be of Indian origin if: He held an Indian passport at any time, He or his father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (Act No. 57 of 1955).

Overseas Corporate Bodies (OCBs) are those which are predominantly owned by individuals of Indian nationality or origin residing outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin residents outside India as also overseas trusts in which at least 60% of the beneficial interest is irrevocable held by such persons. Such ownership interest should be actually held by them and not in the capacity as nominees. The various facilities granted to NRIs.

NRIs/OCBs are granted the following facilities -

  1. 1. Maintenance of bank accounts in India
  2. 2. Investments in securities/shares of, and deposits with, Indian firms/companies
  3. 3. Investments in immovable properties in India

 

  • Under the general permission, the following categories can freely purchase immovable property in India: i) Non-Resident Indian (NRI) - that is a citizen of India residing outside India ii) Person of Indian Origin (PIO) - that 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, or whose father or grandfather was a citizen of India by virtue of the constitution of India or the Citizenship Act, 1955 (57 of 1955). The general permission, however, covers only the purchase of residential and commercial property.

     

Yes

Yes, under the general permission granted by the Reserve Bank, property other than agricultural land/farm house/plantation property can be acquired by NRIs provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser's NRE/FCNR accounts maintained with the banks in India and a declaration submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

Power of Attorney (POA) or letter of attorney is a written authorization to represent or act on other’s behalf in private, business, healthcare and legal matters, sometimes against the wishes of the other. The authorized person is known as the agent or attorney-in-fact, who is usually a legally competent relative or close friend over 18 years old. The person authorizing the other to act is the principal, grantor, or donor (of the power). A Power of Attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property. Generally, one chooses a POA as a provision if he or she becomes incapacitated.

The Reserve Bank of India (RBI) has clarified that Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO), purchasing immovable property in India must pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country. The NRIs and Resident Indians can also acquire immovable property in India other than agricultural property, plantation or a farmhouse. It has issued certain directives for sanctioning home loans to Non-Resident Indians.