Tips for NRI Buyers

NRIs are permitted to purchase both residential and commercial properties without any limitations on the number of properties they can buy. However, as per Indian law, NRIs cannot invest in agricultural land or farmhouses in their name; they can only inherit such properties.

NRIs can make payments for property purchases in India by transferring funds from their overseas accounts through regular banking channels. Additionally, they can use funds from Non-Resident External (NRE), Non-Resident Ordinary (NRO), or Foreign Currency Non-Resident (FCNR) accounts to buy properties in India.

NRIs are permitted to repatriate their original investment in foreign exchange for either residential or commercial property. However, any gains generated from these transactions must be reinvested in the Indian real estate market. In the case of residential properties, NRIs are permitted to remit sale proceeds outside India for up to two properties without seeking approval from the Reserve Bank of India (RBI). However, the RBI’s approval is required for the third and subsequent property purchases.

NRIs are eligible for home loans in India under the same conditions that apply to Indian citizens. However, the rate of interest for home loans is usually higher for NRIs compared to Indian residents. The loan tenure for NRIs typically ranges between five and 20 years, whereas Indian residents can avail a maximum tenure of 30 years. Before applying for a home loan, NRIs must fulfill certain conditions, including being aged 18 years or above, possessing a valid Indian passport, being employed abroad for two years or more, having a steady source of income, and possessing a valid work permit.