NRI Home Loan: Must Follow RBI Rules and Guidelines

 For NRI home loan RBI directives are..!
 

#  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.

#  Persons of Indian origin living abroad, NRI's and spouse of an Indian can acquire residential properties . But not agricultural land, farmland or any plantation land.  It has issued certain directive for sanctioning home loans to Non-Resident Indians.
  
The RBI (Reserve Bank of India) guidelines are:
 

#  The home loan amount should not exceed 85% of the cost of the house/flat, as the remaining amount that is 15% needs to be provided an own contribution towards the cost of property financed.
   
 #  The cost of property which is own contribution financed less the loan amount, can be met from direct remittances from abroad through normal banking channels, the  NRE Account / NRO account in 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.

#  The citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan cannot acquire or transfer immovable property in India without prior permission from RBI.

#  If a particular property is inherited by a resident of the above mentioned countries, he cannot sell the property to another Indian resident or transfer to someone who is permanently residing in India without the permission of RBI.

Also Read
NRI HOME LOAN : A COMPLETE GUIDE

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