Who are NRIs
Under the Foreign Exchange Regulation Act, 1973, Non Resident Indians are:
- Indian citizens who stay abroad for employment, or for carrying on business or vocation outside India, or for any other purpose in circumstances indicating an indefinite period of stay abroad
- Government servants who are posted abroad on duty with the Indian missions and similar other agencies set up abroad by the Government of India where the officials draw their salaries out of Government resources
- Government servants deputed abroad on assignments like the World Bank, International Monetary Fund (IMF), World Health Organisation (WHO), Economic and Social Commission for Asia and the Pacific (ESCAP)
- Officials of State Governments, and public sector undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad.
According to provisions of the Income Tax Act, a person can be called non resident in India if he does not fulfill the following conditions
- He is in India for a period of 182 days or more within an assesment year. or,
- He is in within India for a total of 365 days or more within the 4 years prior to the assesment year and has been in India for 60 days or more within the assesment year.
RBI guidelines for loans to NRIs
The Reserve Bank of India has issued certain guidelines for granting loans to NRIs. These are:
- The loan amount should not exceed 85% of the cost of the property.
- Own contribution, which is the cost of the dwelling unit financed, less the loan amount, can be met from direct remittances from abroad through normal banking channels from the NRE account in India and/or NRO account in India.
- Repayment of loan which comprises principal and interest including all charges are to be remitted to housing finance company from abroad through normal banking channels, the NRE and/or NRO account in India.
Housing finance companies offer a range of housing loan options for Non Resident Indians. [
