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    RBI guidelines for NRIs availing of Home Loans

    If you want to avail of a loan to acquire an immovable property:

    A non-resident Indian or a person of Indian origin resident outside India can avail of a housing loan from a housing finance institution in India approved by the National Housing Bank for acquisition of a residential accommodation in India, subject to the following conditions:

    • The quantum of loans, margin money and the period of repayment shall be at par with those applicable to housing finance provided to a person resident in India

    • The loan amount shall not be credited to Non-resident External (NRE) / Foreign Currency Non-resident (FCNR) / Non-resident Non-repatriable (NRNR) account of the borrower

    • The loan shall be fully secured by equitable mortgage of the property proposed to be acquired, and if necessary, also by lien on the borrower's other assets in India;

    • The installment of loan, interest and other charges, if any, should be paid by the borrower by
      Remittances from outside India through normal
      banking channels or

      Out of funds in his Non-resident External (NRE) /
      Foreign Currency Non-Resident (FCNR) / Non-
      resident Non-repatriable (NRNR) / Non-resident
      Ordinary (NRO) / Non-resident Special Rupee (NRSR) account in India, or

      Out of rental income derived from renting out the property acquired by utilisation of the loan;

      The rate of interest on the loan should conform to the directives issued by the Reserve Bank or, as the case may be, by the National Housing Bank.


    If you want to avail a loan against your immovable property-

    A Non-Resident Indian can avail of a loan against Immovable Property held in his name subject to the following conditions:

    • The loan can be utilised for meeting the borrower's personal requirements or for his own business purposes;

    • The loan cannot be utilised, either singly or in association with other person, for any of the activities in which investment by persons resident outside India is prohibited, namely the business of;

    • A Chit Fund or

    • Nidhi Company or

    • Agricultural or plantation activities or

    • Real estate business (excluding development of townships, construction of residential / commercial premises, roads or bridges) or

    • Construction of farm houses or

    • Trading in Transferable Development Rights (TDRs).

    • The Reserve Bank's directives on advances against Immovable Property shall be duly complied with

    • The loan amount cannot be credited to Non-Resident External (NRE) / Non-Resident Ordinary (NRO) / Foreign Currency Non-resident (FCNR) / Non-Resident Non-Repatriable (NRNR) account of the borrower;

    • The loan amount shall not be remitted outside India;

    • Repayment of loan shall be made from out of

    • Remittances from outside India through normal banking channels
      or

      By debit to the Non-Resident Ordinary (NRO) / Non-Resident Special Rupee (NRSR) / Non-Resident Non-Repatriable (NRNR) / Non-Resident External (NRE) / Foreign Currency Non-Resident (FCNR) account of the borrower or

      Out of the sale proceeds of the immovable property against which such loan was granted.