NRIs Guide to Buying Property in India

NRIs have always shown a deep interest in properties in India. And why not? With more favourable currency rates these days, availability of luxurious estate at affordable rates,  and competitive home loan interest rates, many are eyeing properties in India to earn passive income or create a haven to settle in post-retirement. 

Are you an NRI looking to invest in Indian properties? If so, here are a few know-hows you should know before starting the property hunt. 

Types of properties NRIs can buy

According to the Reserve Bank of India, NRIs who hold valid passports are eligible to buy residential or commercial properties in India without hassle. In such a scenario, you don’t need to ask for special permission from the apex bank. You have the liberty to buy any number of properties in India, provided you follow the RBI regulations and income tax laws. 

However, when it comes to farmlands or agricultural lands, NRIs can’t invest based on the general permission from the RBI. You will have to apply for special permission, considered by the RBI on a case-to-case basis only. In case you had ownership of agricultural land or farmland before becoming an NRI, then you are entitled to hold your land without any permissions. But regardless of the property you choose, make sure you’ve sorted out the documents, especially if you’re planning to take a home loan


If an NRI wants to buy a property in India, all the transactions regarding the purchase must be made in INR (Indian Rupee). This means that you must open an NRI account in one of the authorized financial institutions and maintain funds following Foreign Exchange Management Act (FEMA) and RBI regulations.

If you don’t have immediate funds ready with you, you can also avail of home finance if you meet the required home loan eligibility criteria. RBI allows financial institutions registered with the National Housing Bank to disburse loans to NRIs looking to buy property in India. However, you must invest at least 20% of the total property value from your own pockets, while the loan will cover the remaining 80%. 

Power of Attorney 

If you cannot be present in India to make the property purchase, or the property is still under construction, you have the right to exercise Power of Attorney (PoA). This means that you can choose a trusted family member or friend to sign all the official documents and complete the transaction on your behalf. 

If the property is still under construction, you can provide PoA in the name of the builder or associate. Make sure you use a lawyer to prevent forgery and secure your investments in their developmental phase. 

To sum it up 

See? With due diligence and proper planning, you can purchase a property in India without any hassles. Especially now, when financial institutions are offering easy loans online at competitive home loan interest rates. So, if you’re interested, check out lenders online and use a home loan EMI calculator to understand your loan liabilities, and start planning your investment today!

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