| FAQ's |
|
| Q: Who is a non-resident
Indian? |
| A: An Indian citizen who stays
abroad for employment/carrying on business
or vocation outside India or stays abroad
under circumstances indicating an intention
for an uncertain duration of stay abroad is
a non-resident. (Persons posted in UN organisations
and officials deputed abroad by Central/state
governments and public sector undertakings
on temporary assignments are also treated
as non-residents). Non-resident foreign citizens
of Indian origin are treated on par with non-resident
Indian citizens (NRIs). |
| |
| Q. Who is a person of Indian
origin? |
| A:For investments in immovable
properties A foreign citizen (other than a
citizen of Pakistan, Bangladesh, Afghanistan,
China, Iran, Bhutan, Sri Lanka, or Nepal)
is deemed to be of Indian origin if, (i) he
held an Indian passport at any time, or (ii)
he or his father or paternal grand-father
was a citizen of India by virtue of the Constitution
of India or the Citizenship Act, 1955 (57
of 1955). |
| |
| Q: What is an OCB? |
| A: Overseas Corporate Bodies
(OCBs) are bodies predominantly owned by individuals
of Indian nationality or origin resident outside
India and include overseas companies, partnership
firms, societies and other corporate bodies
which are owned, directly or indirectly, to
the extent of atleast 60 per cent by individuals
of Indian nationality or origin resident outside
India as also overseas trusts in which atleast
60 per cent of the beneficial interest is
irrevocably 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 are also available
with certain exceptions to OCBs so long as
the ownership/beneficial interest held in
them by NRIs continues to be atleast 60 percent. |
| |
| Q: Are OCBs required to
produce any certificate regarding ownership/beneficial
interest in them by NRIs? |
| A: Yes. In order to establish
that the ownership/beneficial interest in
any OCB held by NRIs is not less than 60 per
cent, the concerned body/trust is required
to furnish a certificate from an overseas
auditor/chartered accountant/certified public
accountant in form OAC where the ownership/beneficial
interest is directly held by NRIs, and in
form OAC 1 where it is held indirectly by
NRIs and further that such ownership interest
is actually held by them and not in the capacity
as nominees. |
| |
| Q: What are the various
facilities available to NRIs/OCBs? |
A: NRIs/OCBs are granted the
following facilities :
- Maintenance of bank accounts in India.
- Investments in securities/shares of,
and deposits with, Indian firms/companies.
- Investments in immovable properties
in India.
- INVESTMENT IN IMMOVABLE PROPERTY
|
| |
| Q: Do non-resident Indian
citizens require permission of Reserve Bank
to acquire residential/commercial property
in India? |
| A: No. An Indian citizen resident
outside India does not require any permission
to acquire any immovable property in India
other than agriculteral/plantation property
or a farm house. However the purchase consideration
should be met either out of inward remittances
in foreign exchange through normal banking
channels or out of funds from NRE/FCNR accounts
maintained with banks in India. |
| |
| Q: Do foreign citizens
of Indian origin require permission of Reserve
Bank to purchase immovable property in India
for their residential use? |
| A: Reserve Bank has granted
general permission to foreign citizens of
Indian origin, whether resident in India or
abroad, to purchase immovable property other
than agriculteral land/farm house/plantation
property, in India. They are, therefore, not
required to obtain separate permission of
Reserve Bank or file any declaration. |
| |
| Q: In what manner the purchase
consideration for the immovable property should
be paid by foreign citizens of Indian origin
under the general permission? |
| A: The purchase consideration
should be met either out of inward remittances
in foreign exchange through normal banking
channels or out of funds from any non resident
accounts maintained with banks in India. |
| |
| Q: Can such property be
sold without the permission of Reserve Bank? |
| A: Yes. Reserve Bank has granted
general permission for sale of such property.
However, where the property is purchased by
another foreign citizen of Indian origin,
funds towards the purchase consideration should
either be remitted to India or paid out of
balances in non-resident accounts maintained
with banks in India. |
| |
| Q: Can sale proceeds of
such property if and when sold be remitted
out of India? |
A: In the event of sale of immovable
property other than agricultural land/farm
house/plantation property in India by a person
resident outside India, who is a citizen of
India, or a person of Indian origin, the authorized
dealer may allow repatriation of the sale
proceeds outside India, provided all the following
conditions are satisfied:-
the immovable property was acquired by the
seller in accordance with the provisions of
the Exchange Control Rules/Regulations/Law
in force at the time of acquisition, or the
provisions of the Regulations framed under
the Foreign Exchange Management Act, 1999;
the sale takes place after three years from
the date of acquisition of such immovable
property of from the date of payment of final
installment of consideration for its acquisition,
whichever is later;
the amount to be repatriated does not exceed(a)
the amount paid for acquisition of the immovable
property in foreign exchange received through
normal banking channels or out of funds held
in foreign currency non-resident account or
(b) the foreign currency equivalent, as on
the date of payment, of the amount paid where
such payment was made from the funds held
in non-resident external account for acquisition
of the property; and in the case of residential
property, the repatriation of sale proceeds
is restricted to not more than two such properties.
In all other cases prior permission 9 RBI
is required |
| |
| Q: Can foreign citizens
of Indian origin acquire or dispose of residential
property by way of gift? |
| A: Yes. Reserve Bank has granted
general permission to foreign citizens of
Indian origin to acquire or dispose of immorelde
properties other than agricultural land/farmhouse/plantation
property by way of gift from or to a relative
who may be an Indian citizen or a person of
Indian origin whether resident in India or
not. |
| |
| Q: Can NRI's/PIO's rent
out the properties (residential/commercial)
if not required for immediate use? |
| A: Yes. Reserve Bank has granted
general permission for letting out any immovable
property in India. The rental income or proceeds
of any investment of such income is eligible
for repatriation |
| |
| Q:Can NRIs obtain loans
for acquisition of a house/flat for residential
purpose from financial institutions providing
housing finance? |
| A: Reserve Bank has granted
general permission to certain financial institutions
providing housing finance e.g. HDFC, LIC Housing
Finance Ltd., etc., to grant housing loans
to non-resident Indian nationals for acquisition
of a house/flat for self occupation subject
to certain conditions. The purpose of loan
margin money and the quantum of loan will
be at par with those applicable to housing
loans to residents. Repayment of loan should
be made within a period not exceeding 15 years
out of inward remittances or out of funds
held in the investor's NRE / FCNR / NRO Accounts. |
| |
| Q: Can authorised dealer
grant loans to NRIs for acquisition of a flat/house
for residential purposes? |
| A: Authorised dealers have been
granted permission to grant loans to non-resident
Indian nationals for acquisition of house/flat
for self-occupation on their return to India
subject to certain conditions Repayment of
the loan should be made within a period not
exceeding 15 years out of inward remittance
through banking channels or out of funds held
in the investors' NRE/FCNR/NRO accounts. |
| |
| Q: Can authorized dealer
grant housing loan to non-residents of Indian
originality where he is a principle borrower
with his resident close relative as a co-obligent
/ guarantor or where the land is owned jointly
by such NRI borrower with his resident close
relative? |
| A: Yes. However, in such cases,
the payment of margin money and repayment
of the loan installments should be made by
the NRI borrower. |
| |
| Q: What are the guidelines
for acquisition of agricultural land / plantation
property / farmhouse by NRIs and foreign citizens
of Indian origin? |
A: All requests for acquisition
of agricultural land / plantation property
/ farm house by any person resident outside
India may be made to The Chief General Manager,
Reserve Bank of India, Central Office, Exchange
Control Department, Foreign Investment Division
(III), Mumbai 400 001.
NRI Housing Loan Details
Institution Max Loan
Amt .(Rs) Ceiling Max.Term ROI EMI PER LAC
Basis of Calculation
ANZ 1 Crore 85% 7 Years 14.25% 1930 Monthly
Reducing
CITIBANK 50 lacs 80% 7 Years 13.75% 1860 Daily
Reducing
HDFC 50 lacs 85% 7 Years 5 Years-11.5% FIX
11%Variable
7 Years -12% FIX
11.5% Variable 2284
2255
1826
1798 Annual Reducing
HUDCO 50 lacs 85% 10 Years 13% 1494 Monthly
Reducing
ICICI 1 Crore 85% 5 Years 11.25% 2269 Annual
Reducing
LIC 50 lacs 75% 10 Years 13% 1536 Annual Reducing
Citibank Loans are available only for NRI's
in the middle east.
LIC will extend the term of the loan to 10
years for professionals.
Ceiling refers to the maximum percentage of
the propert value which will be funded by
the Institution and the balance has to be
funded bt the customer.
EMI per lac figures shown above on the monthly
Payments that the custome will have to make
speard over the maximum term that the institution
is willing to provide.
DISCLAMER
The above details are subject to change. |
| |
