OCBs and NRIs can invest in India in accordance with RBI rules, Indian laws and Foreign Investment Promotion Board (FIPB). Both OCBs and NRIs can invest up to 100% except for the real estate investments are fully repatriable.
All commercial properties other than agricultural land, farm, house, plantation property can be acquired as per the general permission granted by RBI.
Foreign citizens of Indian origin can dispose or acquire residential property (up to two houses) as a gift as per the general permission by RBI. It may be given to a relative by a person of Indian origin whether resident in India or an Indian Citizen. The said permission is subject to compliance with applicable tax laws.
Reserve Bank of India (RBI) has granted general permissions to ‘certain financial institutions that deal in housing finance to grant housing loans to NRIs to buy property for self-occupancy. The permission is subject to certain terms and conditions.
NRIs and OCBs can get a Home Loan of up to 85% of the Total Consideration Value.
RBI guidelines state –
1. The loan amount shall not surpass 85% of the cost of the dwelling unit.
2. Own contribution can be met from direct remittances from abroad only through normal banking channels such as your Non-Resident Special Rupee account [NRSR] or Non-Resident (Ordinary) [NR (O)] or Non-Resident (External) [NR (E)] account in India.
3. Repayment of the loan, comprising the principal and interest including all the charges are to be remitted from abroad only through normal banking channels.
Can an NRI give a Power of Attorney to a person in India for completion of loan formalities on their behalf? The laws of Indian government allow 100% repatriation for NRIs.
File a declaration in form IPI 7 with the Central Office of RBI, Mumbai within a period of 90 days from final payment of purchase consideration or the date of purchase of immovable property along with a certified copy of the document showing all transactions and bank certificate regarding the consideration paid.
Such property can be sold. RBI has granted general permission for it. However, if the property is purchased by another foreign citizen of Indian Origin, the funds towards the purchase consideration should be either paid out of balance in NRE/FCNR accounts or be remitted to India.
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