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Who is a Non-Resident Indian (NRI)?

Any Indian Citizen who stays abroad for employment/business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident.

Are the number of NRI investments limited in commercial properties in India?

There is no limit on the number of investments that can be made in commercial properties in India by an NRI.

Is it possible for an NRI to acquire a commercial property in India?

Yes, it is possible for an NRI to acquire commercial property in India under the general permission granted by the RBI, which are subject to further terms and conditions. According to Indian Laws, a commercial property is considered other than agricultural land/farm house/plantation property.

Can sale proceeds of such property be remitted out of India? 

Yes. Repatriation of original investment in respect of properties purchased by foreign citizen of Indian Origin on or after 26th May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final

purchase deed or from the date of payment of final installment of consideration amount, whichever is later. Application for the purpose is acquired to be made to the Central Office of Reserve Bank within 90 days of the sales of property in Form IPI 8.

What are the documents required to be carried along while planning a property in India for an NRI?

NRI customer should keep his NRO account number handy, while planning to buy a property.

Can immovable property be transferred to relatives/registered charitable trusts/organizations in India?

Yes. You can do that subject to the conditions that the provisions of any other law, including Foreign Contribution (Regulation) Act, 1976, as applicable, are duly complied with.

Can the properties (residential/commercial) be given on rent if not required for immediate use?

Yes. You can rent your property in India and all the income from these assets is eligible for repatriation.

Can NRIs obtain home loans from authorized dealers/financial institutions? 

Yes, but only from certain financial institutions which have been granted from RBI.

What are the criteria regarding avail of home loans for NRIs in India?

According to RBI guidelines, loan amount shall not exceed 85% of the cost of the property under consideration. Own contribution, which is the cost of dwelling unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India. Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.

Can Indian companies grant loans to their staff working abroad?

Yes they can, subject to certain conditions.

While purchasing real estate most developers demand a Power of Attorney in their favor, is there a way to avoid it?

This is done just to avoid the time delays in the paper work. According to the mandate, all the documents have to be mailed to your foreign residence. So Buyers usually grant POA to the developer to avoid the hassle.

What are the options available for obtaining guarantors while applying for a loan?

A guarantor is needed for a loan mainly for the collateral security and he/she will have to demonstrate the net worth to cover for the loan. Guarantor can be in any city where the loan issuer has a branch.

What are the conditions applicable for executing the power of attorney (POA) outside of India?

The attorney should preferably be a resident of India. The POA should be executed on a plain paper/stamp paper based on the rules applicable in the country of execution. Signature of the executants must be attested by an authorized official of the Indian Embassy/Consulate/Trade commissioner in the country where the executants resides. Signature of the attorney must be verified in India by Notary Public or his employer or his banker on a separate piece of paper and submitted to SHFL together with the power of attorney.


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