The Non-Resident Indians (NRIs) are
recognized under the Foreign Exchange Regulatory Act, 1973.
Every bank and housing finance companies follow the RBI guidelines
to define NRI -
"An Indian citizen who holds a valid documents 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."
Broadly categorized, Non-Resident Indians qualifying for
NRI housing loans are:
- Indian citizens who stay abroad for employment or for
carrying on business or vocation outside India or for any
other purpose in circumstances indicating an indefinite
period of stay abroad;
- Government servants who are posted abroad on duty with
the Indian missions and similar other agencies set up abroad
by the Government of India where the officials draw their
salaries out of Government resources;
- Government servants deputed abroad on assignments with
foreign Governments or regional/international agencies like
the World Bank, International Monetary Fund (IMF), World
Health Organization (WHO), Economic and Social Commission
for Asia and the Pacific (ESCAP);
- Officials of the State Government and Public Sector Undertakings
deputed abroad on temporary assignments or posted to their
branches or offices abroad.
Documents required for Resident Indians as well as for NRIs
for getting Home Loans are different in some respect.
Home loans for NRIs are available for construction
of new house / flats, purchase of old house / flat addition
/ alteration to an existing house and repairs / renovation
etc. NRIs can avail of loans by mortgaging an existing residential
property. However, for availing home loans, NRIs have to fulfill
certain conditions according to provisions of the Income Tax
Act. They 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. Banks have attractive NRI housing
schemes to accommodate the housing needs of NRIs.
From the stables of HFCs, NRI housing finance plans
with suitable repayment options are available.
Last but not the least, NRIs should take due care while selecting
their home loan provider companies or HFCs. Considering the
geographical distances involved, it is significant that loan
seekers associate with a proactive and responsive HFC.