Can NRIs invest in India?
Non Resident Indians can make investments in India in consonance with Indian law, RBI rules and regulations as well as other regulations set forth by the Foreign Investment Promotion Board (FIPB). NRIs can make up to 100% equity investment in real estate sector and the nation’s civil aviation sector. Further, all investments, except for the real estate investments, are fully repatriable. For real estate investments, the lock-in period on original investment is 3 years.
Can NRIs obtain loans for buying a house/flat for residential purpose?
Reserve Bank has granted general permission to certain financial institutions deals in housing finance to grant housing loans to non-resident Indians for acquisition of houses/flats for self-occupation subject to certain conditions.
How much loan can one get?
One can get a Home Loan of up to 85% of the total consideration value.
What are the formalities required to be completed by NRIs for purchasing residential immovable property in India?
NRIs are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transactions and bank certificate regarding the consideration paid.
Can such property be sold without the permission of Reserve Bank?
Yes, Reserve Bank has granted general permission for sale of such property. However whether 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 balance in NRE/FCNR accounts.
