Home Loans
NRIs are recognised under the Foreign Exchange Regulatory Act, 1973. Every financial institution in India follows the RBI guidelines that define an NRI as - "An Indian citizen who holds a valid document like Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI."
Home loans for NRIs are available for the construction of new residences, purchase of old houses/flats, repairs/renovation/alternations etc. NRIs can also avail of loans by mortgaging an existing residential property. However, basis the Income Tax Act an NRI should have stayed in India for a period of 182 days or more (within an assessment year) or they should have stayed in India for at least a total of one year or more.
The FDI Policy that permits FDI up to 100% from foreign/NRI investor under the automatic route has boosted NRI confidence. Furthermore banks have attractive NRI housing schemes as well
