NRI's Guide For Investing In Property In India
As the rupee is depreciating, several Non-resident Indians (NRIs) are keen to invest in India. NRI's and Person of Indian Origin (PIO) are looking forward to invest in India as they feel that India's property market is a lucrative investment option.
Given below are some pointers that will clear doubts on NRI's property investment in India.
- No prior permission is required to buy a property in India.
- People can own both residential and commercial properties in India.
- There is no limitation on the number of properties that an NRI can own/buy.
- NRI's are not permitted to buy agricultural land, plantation property and farmhouse. But, they can own such property if they have got it as an inheritance or as a gift.
- Monetary transaction should be done be in Indian rupees (INR).
- Banks and financial institutions can offer loans of upto 80% of the property value to an NRI.
- Education qualification as well as profession, play a key role in deciding a PIO's loan eligibility. Only a graduate NRI can apply for home loans in India.
- NRIs can avail overseas funding where they can get lower interest rates.
- Loan repayment should done by inward remittances.
- It is advisable to get the papers checked by a lawyer before proceeding for a property deal.
- Take no dues certificate and all necessary documentation from the seller, make sure the title of property is clear and the property is not entangled in legal disputes.
- A PIO can sell any property that he/she has bought or inherited.
- If an NRI has inherited a farm house, plantation or an agricultural property he can either gift it to another NRI or he has to find an Indian resident to buy it.
- Some specific RBI guidelines are set for repatriation of sale proceeds to which one needs to adhere to.
- Repatriation should not exceed the foreign exchange amount that was paid for the property purchase through banking channels.
- There are no limitations on refund of application money, advance on cancellation.
- An NRI can repatriate the proceeds of only two properties.
- NRI's are entitled to all tax benefits that are offered to an Indian resident for purchase of a property.