For NRI

BUYING GUIDE FOR NRI

Settled up in other countries.? no problem, try these guidelines.

Who is the Non-Resident Indian?

An NRI is an Indian citizen who stays outside India:
– For purposes of carrying out employment or any business or vocation
– under circumstances indicating an intention to stay outside India for an uncertain duration
– Any Indian citizen deputed outside India for a temporary period in connection with employment

Who is the person of Indian origin (PIO)?

A citizen of a foreign country (other than a citizen of Bangladesh or Pakistan) is a PIO if:
– He / She at any time held an Indian Passport
– He / She or either of his/ her parents or grandparents was a citizen of India
– Spouse (not being a citizen of Bangladesh or Pakistan) of an Indian Citizen or (a) or (b) above.

What process should (NRIs) & foreign citizen of Indian origin (PIOs) allowed acquiring or disposing immovable property in India?

A citizen of a foreign country (other than a citizen of Bangladesh or Pakistan) is a PIO if:
– He / She at any time held an Indian Passport
– He / She or either of his/ her parents or grandparents was a citizen of India
– Spouse (not being a citizen of Bangladesh or Pakistan) of an Indian Citizen or (a) or (b) above

What process should an NRI or PIO use in order to purchase in India?

An NRI or PIO can purchase a property either through an inward remittance in foreign exchange through normal banking channels or through the funds available in the NRE/NRO/FCNR accounts maintained in India by the investor.

Can the property (Resident/Commercial) be given on rent if not required for the immediate use?

There is no clause by the RBI, which restricts an NRI or PIO to rent the properties acquired by them. The amount received from rentals can also be repatriated back to the country they are residing in, without any restriction.

Can an NRI give ‘power of Attorney’ to a person in India for completion of loan formalities on their behalf?

Yes. NRIs can definitely appoint a Power of Attorney to complete all loan formalities towards the purchase of a property in India, considering the fact that an NRI wouldn’t be in India for long periods. The stringent formalities followed by Indian banks, only mean that the appointment of a Power of Attorney would be ideal.

Is there a limit to the no of investments an NRI can make an acquiring Residential/commercial property in India?

The Reserve Bank of India has not fixed any restrictions on the number of Residential/Commercial properties that can be purchased by an NRI/PIO. However, the RBI has a restriction in the purchase of Agricultural Land/Plantation Property or Farmhouses in India.

What are the facilities provide by the SPE Homes for an NRI investor?

At SPE Homes, we have a team of qualified individuals, specially trained on Foreign Investment policies, pertaining to Property. We also have a dedicated Sales number that can be called for further assistance by our representatives. The team is also updated on each property development at SPE Homes, so they would be able to assist NRI customers on any queries related to project status, payment schedules, loan assistance etc.

Does SPE Homes arrange for the site visits, if the NRI customer wants to take a look at their Property, upon their visit of India?

we do the facility of site visits for customers on their arrival in India.

How much loan is an NRI or PIO eligible for?

An NRI or PIO can get a Home Loan of up to 85% of the Total Consideration Value of the property. Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., to grant housing loans to NRI’s for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of loan margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investor’s NRE/FCNR/NRO accounts.

Are there any tax implications for NRIs on the purchase, sale?

There aren’t any tax implications for NRIs for the purchase of properties in India, however any income earned from the rental of a residential property would be taxable under House Property, in the Income Tax Act of 1961. Income earned out of the rental of a commercial property would be taxable under Business Income in the Income Tax Act of 1961 & Income earned from the sale of a property is taxable under Capital Gains of the Income Tax Act of 1961.

NRI Checklist

– Two-passport size photograph of applicant, co-applicant, and GPA Holder.
– Age, address, identity, signature proof for applicant/co-applicant/GPA holder.
– GPA has to be attested from Indian embassy for customer signature and to be notarized locally for GPA holder’s signature.
– Academic Qualification proof.
– HR email address and applicant official and personal E-Mail address.
– Work permit, Copy of Passport and Visa.
– Last 3 years employment continuity proof.
– Copy of the appointment letter with Latest CTC.
– Latest 4-months pay slip.
– Latest six month NRE/NRO bank statement & Salary credit bank statement with 6 salary credits.
– Processing fee Cheque Initially, from NRE/NRO a/c paid in favor of AXIS BANK LTD., RAC PF ACCOUNT (which is Non-Refundable).
– GPA Relationship proof.
– Property Details: Property should be insured for SBA value for fire and earth quake or natural calamities.
– No Fore-Closure charges.
– No Prepayment Charges.
– No Take over Charges.
– Rate of Interest: Up to 30 Lahks – 10.25% & Above 30 Lakhs – 10.75%.
– Processing fee: 1.00% of the loan amount + 10.30% Service Tax.
– Funding of Ratio: 85% of the property cost and bank valuation which ever lesser Loan period will be 15 to 20 Years.