How to buy a home in India for NRI’s?
Non resident Indians, more often than not, like to have a base in India – a home so to speak. But many hesitate from doing so because they believe that applying for a loan is a big hassle and the process is simply not worth it. Well, my friend, I beg to differ. Applying for a loan in India has, in fact, never been easier or smoother if you are a Non Resident Indian.
If you are a foreign citizen, who is also a resident of India, you can buy as well as sell properties in the country freely, without obtaining any permission from the Reserve Bank of India – a misconception which people commonly suffer from! There are a few restrictions though.
If you are a foreign citizen who is not of Indian origin, you cannot purchase any agricultural land or a farmhouse or even a plantation or property along those lines within the boundaries of India if you don’t have any approval from the Reserve Bank of India. On the other hand, if you inherit the property that is a different issue altogether. Leasing of any immovable property such as a home or land plot for about five years or less is freely smiled upon.
If you are a person of Indian origin or an NRI, you will have a general permission to purchase freely any residential property or commercial property. What is more, there is no upper limit to the number of such properties you want to purchase so go right ahead! But, at the same time, the name of any foreign national who is not of Indian origin cannot be put as the second holder of such property if it has been purchased by an NRI or a person of Indian Origin.
At the same time, any foreign national who is not of Indian origin may not purchase any property which is immovable without the permission of the Reserve Bank of India. But you can acquire such property on lease for a period of not more than five years without the permission of the Reserve Bank of India.
Citizens of Bangladesh, Pakistan, China, Iran, Nepal, Sri Lanka, Bhutan and Afghanistan may not acquire immovable property in India either – except for lease for a period of five years- if they don’t have permission from the Reserve Bank of India.
Selling of property too has some norms. An NRI can sell any property acquired by them to an Indian citizen, person of Indian origin or NRI. On the other hand, a person of Indian origin can only sell their property to people who are citizens of India. He would need to get permission from the RBI in order to sell his property to another person of Indian origin or an NRI. Foreign nationals who are or aren’t residents of India would require prior approval of the Reserve Bank of India in order to sell any property they may have acquired in India (again after getting approval from the RBI).
Any NRI or Person of Indian Origin can sell his agricultural land, plantation, property in India to any resident of the country or a citizen of India. In the case of foreign nationals who do not reside in India, prior approval from the Reserve Bank is a must. Gifting property in India to people who are residents of India is freely permitted – for NRIs and persons of Indian origin. Gifting of farmland or farmhouses to residents of India is also permitted. Buying and selling property in India does have some rules and regulations, just look them up before you embark on any transactions!