Magnum Opus
Every Non Resident Indian dreams of owning a home in India, a project they hold very close to their heart. Diya makes you realize your dream come true. Our projects are a blend of contemporary style and ethnic beauty, a perfect harmony of the two worlds. We don’t just stop at that, we build homes for you to live and cherish every moment of your life with your loved ones.

Here is a quick list of frequently asked questions for a better understanding of our rules regarding property acquisition in India.
Who is an NRI?

  • The following are the main three categories of NRIs as per FEMA:
  • Non-Resident Indian National i.e. Non-resident Indian holding Indian Passport.

Non-residents holding foreign passports i.e. Persons of Indian Origin
“Persons of Indian Origin” means a citizen of any country other than Bangladesh or Pakistan. If,
(i) he at any time, held an Indian Passport, or
(ii) he or either of this parents or any of his grand parents was a citizen of India by virtue of the Constitution of India
or Citizenship Act, 1955 (57 of 1955) or
(iii) the person is a spouse of an Indian citizen or a person referred to in sub-clause (i) or (ii).

How can an Indian Citizen resident outside India Acquire and Transfer Property in India?

A person resident outside India who is a citizen of India may:

  • acquire any immovable property in India other than agricultural/ plantation/ farm house, and
  • transfer any immovable property in India to a person resident in India.
  • transfer any immovable property other than agricultural or plantation property or farm house to a person
  • resident outside India who is a citizen of India or to a person of Indian origin resident outside India.

What is the process of Acquisition and Transfer of Property in India by a Person of Indian origin?

A person of Indian origin resident outside India may:

  • acquire any immovable property other than agricultural land/farm house/ plantation property in India by purchase, from out of

(i) funds received in India by way of inward remittance from any place outside India or
(ii) funds held in any non-resident account maintained in accordance with the provisions of the Act and the regulations
made by the Reserve Bank under the Act;

  • acquire any immovable property in India other than agricultural land / farm house / plantation property by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India;.
  • acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or from a person resident in India; (d) transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India;
  • transfer agricultural land/farm house/ plantation property in India, by way of gift or sale to a person resident in India who is a citizen of India;
  • transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India who is a citizen of India or to a person of Indian Origin resident outside India.

How to Acquire Immovable Property for carrying on a permitted activity?

A person resident outside India who has established in India in accordance with the Foreign Exchange Management
(Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, a branch, office or other place of business for carrying on in India any activity, excluding a liaison office, may:

  • acquire any immovable property in India, which is necessary for or incidental to carrying on such activity; Provided that

i) all applicable laws, rules, regulations or directions for the time being in force are duly complied with; and
ii) the person files with the Reserve Bank a declaration in the form IPI annexed to these regulations,
not later than ninety days from the date of such acquisition;

  • transfer by way of mortgage to an authorised dealer as a security for any borrowing, the immovable property acquired in pursuance of clause (a).

What are the rules involved in Repatriation of sale proceeds?

The Reserve Bank of India (RBI) has clarified that Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO),
purchasing immovable property in India should pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country.

  • A person, or his successor shall not, except with the prior permission of the Reserve Bank, repatriate outside India the sale proceeds of any immovable property referred to in that sub-section;
  • 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 authorised dealer may allow repatriation of the sale proceeds outside India, provided the following conditions are satisfied, namely:

(i) the immovable property was acquired by the seller in accordance with the provisions of the foreign exchange
law in force at the time of acquisition by him or the provisions of these Regulations;
(ii) the sale takes place after three years from the date of acquisition of such immovable property or from the date
of payment of final installment of consideration for its acquisition, whichever is later; and ;
(iii) 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;
(iv) in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

How can a Person of Indian Origin / NRI pay for acquiring immovable property in India?

The Reserve Bank of India (RBI) has clarified that Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO),
purchasing immovable property in India should pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country.
What are the guidelines that RBI has imposed on Banks while disbursing housing loans to NRIs/PIOs?
The NRIs and Resident Indians can also acquire immovable property in India other than agricultural property, plantation or a farmhouse. It has issued certain directive for sanctioning home loans to Non-Resident Indians.

The guidelines provided are:

  • The home loan amount should not exceed 85% of the cost of the dwelling unit, as the remaining amount that is 15%  needs to be provided an own contribution towards the cost of unit financed.
  • The cost of dwelling unit which is own contribution financed less the loan amount, can be met from direct remittances from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and /or Non-Resident (Ordinary) [NR (O)] account in India.
  • However, repayment of the loan, comprising of the principal and interest including all the charges are to be remitted to the HFC from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and /or Non-Resident (Ordinary) [NR (O)] account in India. transfer agricultural land/farm house/ plantation property in India, by way of gift or sale to a person resident in India  who is a citizen of India;
  • transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India who is a citizen of India or to a person of Indian Origin resident outside India.

The repayment option for NRIs as they can pay through the funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999, and the regulations made by the RBI from time to time. As most of the home loan provider companies consider the economical stability of the applicant, home loans for NRIs are quite feasible, because they are well in economic resource.

How is the eligibility criteria of NRIs to take a loan in India?

The parameters include:
Age: The loan applicant has to be 21 years of age.
Qualification: The NRI loan seeker has to be a graduate.
Income: The loan applicant has to have a minimum monthly income of $ 2,000 (although, this criterion may differ across HFCs). The eligibility is also determined by the stability and continuity of your employment or business.
Payment options: The NRI also has to route his EMI (Equated Monthly Installments) cheques through his NRE/NRO account. He cannot make payments from another source say, his savings account in India.
Number of dependants: The eligibility of the applicant is also determined by the number of dependents, assets and liabilities.
An NRI applicant is eligible to get a home loan ranging from a minimum of Rs 5 lakhs to a maximum of Rs 1 crore, based on the repayment capacity and the cost of the property, which although is variable by the priorities of the home loan provider.
Home Loan Tenure for NRIs is different from Resident Indians. An applicant will be eligible for a maximum of 85% of the cost of the property or the cost of construction as applicable and 75% of the cost of land in case of purchase of land, based on the repayment capacity of the borrower.
However, a NRI can enhance his loan eligibility by applying for home loans with a co-applicant who has a separate source of income. Also, the rate of interest for home loans to NRIs is higher than those offered to Resident Indians.
The difference is to the extent of 0.25%-0.50%. Some HFCs also have an internally earmarked ‘negative criterion’
for NRI home loans. As such, the NRIs who hail from locations that are marked as being ‘negative’ in the books of HFCs,
find it difficult to get a home loan.
What are the Documents requirements for NRI to Obtain a Bank/HFC Loan?
The vital document required while processing an NRI home loan is the power of attorney (POA). The POA is important because, since the borrower is not based in India; the HFC would need a ‘representative’ ‘in lieu of’ the NRI to deal with and if needed.
Although not obligatory, the POA is usually drawn on the NRI’s parents/wife/children.
The documents needed for obtaining NRI home loans are:

  • Passport and Visa
  • A copy of the appointment letter and contract from the company employing the applicant.
  • The labor card/identity card (translated in English and countersigned by the consulate) if the person is employe
  • employed in the Middle East Salary certificate (in English) specifying name, date of joining, designation and salary details.
  • Bank Statements for the last six months

List of Classified documents for Salaried and Self Employed NRI Applicants
Salaried NRI Applicants

  • Copy of valid passport showing VISA stamps
  • Copy of valid visa / work permit / equivalent document supporting the NRI status of the proposed account holder
  • Overseas Bank A/C for the last 3 months showing salary credits
  • Latest contract copy evidencing Salary / Salary Certificate / Wage Slips

Self-Employed NRI Applicants

  • Passport copy with valid visa stamp
  • Brief profile of the applicant and business/ Trade license or equivalent document
  • 6 months overseas bank account statement and NRE/ NRO account
  • Computation of income, P&L account and B/Sheet for last 3 years certified by the C.A. / CPA or any other relevant authority as the case may be (or equivalent company accounts)

Property Documents:

  • Original title deeds tracing the title of the property for a minimum period of the last 13 years.
  • Encumbrance Certificate for the last 13 years.
  • Agreement of sale /construction, if any
  • Receipts for payments made for purchase of the dwelling unit.
  • Approved plan / license.
  • ULC clearance /conversion order etc.
  • Receipts for having invested the margin money through normal banking channels from the Non-Resident (External) account in India and / or the Non-Resident (Ordinary) account in India.
  • Latest tax paid receipt.
  • Allotment letter from the co-operative society / association of apartment owners.
  • Agreement for sale / sale deed /detailed cost estimate from Architect / Engineer for property to be purchased / constructed /extended / improved.
  • Copy of approved drawings of proposed construction/purchase/extension.

Additional documents to be submitted by Person of Indian Origin (POI)
Photocopy of PIO card
If the PIO card is not available, photocopies of any of the following documents:

  • The current passport, with birthplace as ‘INDIA’
  • The Indian passport, if held by the individual earlier.
  • Parents/grandparents Indian passport/birth certificate/marriage certificate substantiating the individuals claim as a person of Indian origin.

(SOURCE: Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations,
2000 – Notification No.FEMA 21 /2000-RB dated 3rd May 2000)

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