Frequently Asked Questions for Non-Resident Indians
Q : A : |
Who is an NRI? Under the Foreign Exchange Regulation Act of 1973, Non-Resident Indians are: 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. OR 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. OR 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), OR Officials of the State Government and Public Sector Undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad. Guidelines Issued by the Reserve Bank of India for grant of Housing Loans to NRIs The Reserve Bank of India (RBI) has issued certain guidelines for granting loans to Non-Resident Indians. The guidelines are:
|
Q : A : |
For what purposes are loans available to NRIs? NRIs can avail loan for buying or constructing a new home, extending or improving an existing home or even to buy a plot.
|
Q : A : |
What is meant by "Own Contribution"? How can this "Own Contribution be paid"? Own Contribution is the cost of the dwelling unit financed less the loan amount. The own contribution should be met from direct remittances from abroad through normal banking channels or from the Non-Resident (External) Account/Non-Resident (Ordinary) or the Non-Resident Special Rupee account in India. |
Q : A : |
Where does one register new tenancies in Mumbai ? The following documents are required along with the application form:
|
Q : A : |
What security will I have to provide? Typically the security for the loan is first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary. |
Q : A : |
Can I give a Power of Attorney in favour of a person of my choice in India to complete loan formalities on my behalf? Yes. Normally it is desirable to appoint a Power of Attorney in India to represent you in dealings in India. The Power of Attorney should be executed as per drafts provided by the housing finance company. The Power of Attorney can be given to any person of your choice in India. |