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NRI Real Estate investment in India - Complete Guide

Key points for NRIs before buying property in India

Given below are the main points to be well thought-out before investing in Indian real Estate sector.

  • NRI (Non-Resident Indian) - can freely purchase fixed property in India
  • With general permission NRI's can only purchase residential and commercial properties, excluding farm house, agricultural land and plantation property. For these kinds of properties they require special approval of Reserve Bank and the applications are considered in session with the Government of India.
  • Any NRI's can purchase unlimited residential and commercial properties
  • Any (NIO) Non Indian Origin cannot be a second holder to the property acquired by an NRI.
  • NRI's can freely get hold of immovable property by means of gift either from However; the property can only be commercial or residential-. Farming land / plantation property and farm house cannot be possessed by gift.

Frequently Asked Question related to Home loan for NRI's

For what types of land is a NRI qualified for Home loans?

Home loan is approved to the NRIs for any of the following housing finance schemes:

  1. To buy a house that is ready to move in, under construction or on resale.
  2. To finance the acquisition of a plot of land allotted by a group / development authority.
  3. For development of a property on any empty land
  4. For reconstruction or development of an accessible property in India

What is the repayment period for a NRI Home Loan?

Home loan offered to NRIs generally does not over 15 years. The repayment for the finance is by EMIs. The EMIs begin only after the entire loan is paid. In case of a part payment, you pay plain interest at the rate applicable on the loan amount that is paid to you.

What is the method of payment for NRI home loans?

The loan against the home has to be paid for the total tenure of the loan through transfers of funds from overseas through usual banking channels or from such accounts as may be acceptable by RBI from time to time.

What is the Tax advantages related to NRI's?

Tax benefits are available if they file returns and in that way become eligible to benefit the tax benefits as mentioned under Home Loans.

Papers required for getting Home Loans for NRIs & POIs?

NRIs are required to present extra documents than is generally required for a resident Indian.

  1. Copy of passport
  2. A copy of the works agreement.
  3. The power of attorney (POA).
  4. Salary Slip