NRI's Services

Q1. Who is a non-resident Indian?

Ans.: According to FEMA (Foreign Exchange Regulation Act) rules and guidelines for the Indians, Non-resident Indian is:

A citizen who lives overseas for occupation or carrying on business or career outside the country or for any other reason pointing an unfixed period of stay outside the national country; OR

Government officials who are working overseas on an assigned Indian task or with several other agencies establish overseas by the Government of India where the government officers draw their earnings through Government means; OR

Government officials appointed overseas on duties with abroad governments or territorial/global authorities like the World Bank, International Labor Organization (ILO), World Health Organization (WHO) & Economic and Social Commission for Asia and the Pacific (ESCAP) OR

Bureaucrats of the central government and PSU's delegated overseas on certain assignments or delegated to their divisions or offices overseas.

Q2. Who is a POI or person of Indian Origin?

Ans.: A PIO or person of Indian origin is considered to be of Indian region if :

  • He had an Indian Passport at any time or
  • He or his father or parent grandfather was a citizen of India by merit of the constitution of India or the citizenship Act, 1955.

But, these rules do not follow to residents of Pakistan, Bhutan, Bangladesh, Sri Lanka, Afghanistan or Nepal.


Q3. Are there any rules & regulations for loans to NRIs / PIOs by RBI?

Ans.: There are certain rules and regulations settled by the central bank of India for granting Housing Loans to non-resident Indians. These rules and regulations are:

  • The borrowing amount would not surpass 85% of the price of the housing part.
  • Own share, which is the price of property supported less the advance amount, can be fulfilled from straight payments from overseas only via common banking channels, your bank accounts maintained in India.
  • Compensation of the loan, including the principal, interest and all the fees that are to be canceled from overseas only via common banking channels.

Q4. Can registered agents give loans to non-resident Indians for buying a property for residential purpose?

Ans.: Registered agents have been given authorization to give loans to non-resident India for buying a residential property for self-usage on their come back to county object to some conditions. The process of returning the loan should be settled within a time period not surpassing 15 years out of internal payment via banking channels or out of monetary finances held in the capitalists NRE/FCNR/NRO accounts.

Q5. Can registered agents give loans to non-resident Indian where he is a principal lender with his occupier close person as a co-candidate / guarantor or where the land is owned together by such NRI lender with his resident close relative?

Ans.: Of course, it is possible. Such residential property loans availed in rupees can also be given back by the close relatives in India of the lender.

Q6. What are the documents I have to submit along with the application?

Ans.: The below mentioned papers are usually to be proposed along with the request:

(a) Xerox copy of the labor contract and English interpretation properly checked by your employer
(b)Last current salary details defining the below facts:

  • Name (as it mentions in the passport)
  • Date of Joining
  • Passport number
  • Designation
  • Benefits and allowances

(c) Xerox copy of identity card of genuine visa imprinted on the passport
(d) Xerox copy of valid resident visa stamped on the passport
(e) Xerox copy of monthly statement of national bank account for the past 4 months
(f) Property related documents


Q7. Is it possible for an NRI to get a loan against the official document of immovable property in India? Does the use of loan amount have any guidelines?

Ans.: A non-resident Indian can lend against the legal document of immovable property from registered agent subject to below mentioned terms:
i) The borrowing amount should be intended for meeting the individualized needs or for lenders own business intentions; and
ii) borrowing amount should not be desired for prohibited activities, viz.;

  • Work of chit fund or lottery
  • Agriculture or cultivation work or in construction business, or development of farm houses, or
  • Doing business in Movable Development Rights,

iii) the borrowing amount cannot be remitted out of India,
(iv) the process of returning the loan would be made from outside payments from abroad or by transfer to non-resident account or apart from the sale profits on shares or dividends or residential property against which such advance was approved.


Q8. What types of benefit can non-resident Indians or persons of Indian origin expect to in the country's real estate sector that attracts investment?

Ans.: The benefits of foreign direct of Investment in the real estate sector declared in March 2006 enables non-resident Indians, persons of Indian origin and all foreigners close possibility with their Indian competitors in the Indian construction industry. The new rules and regulations declare that prior selling, the website has to be evolved, built upon or accomplish the principle of minimum one year evolution.

i) Non-resident Indians, persons of Indian origin and foreigners can now spend on land, purchase it build upon it or evolve it, sell designed buildings/developed plots.
ii) Foreign direct investment through automatic way can also tide in not only for the residential industry, however also for townships, residential, commercial region, and retail development
iii) Limitations on a minimal region of land, minimal number of parts has been eliminated
iv) Minimal built area needed is 50, selected region is 25 acres

Q9. What is the specific target of carrying out your construction development work?

Ans.: The guidelines are quite broad. It enables you 60 months to carry out at least half of your project from the period of acquiring all the consents. In common cases, the project can be carried out within the fixed period of time. It assists assure the client and keeps unscrupulous people at bay.

Q10. How does the automatic route work?

Ans.: The automated way has facilitated many of the slow or complicated investment process. Clearance from the central bank of India is not needed any longer. It is not necessary to visit the Foreign Investment Promotion Board either. The simplification of documentation and relaxation of formalities has conferred a boost to foreign investor assurance for spending money in India.

Q11. What benefits should abroad investors look at in the Indian construction market to ease the appropriateness of their projects?

Ans.: Any non-resident India prior spending money in the Indian property should also concentrate on the specific section that he decides to spend in – like residential, commercial or retail area. Having discussions with legal organizations and real estate developments offering reliable NRI solutions can be quite helpful.

Q12. Explain the pace that a non-resident Indian should keep in mind from getting all the consents in a trouble-free manner? Whom should a person match in the process?

Ans.: A plenty relies upon the section you need to spend in. It adds to ascertain the approaching state and to know what benefits are available.

  • A corporate market investment, as an example, needs you to:
  • Talk to consultants for the suggestion on the city of selectionM
  • Design your goals, the size of your investment funds
  • Make a guess of the returns you are hoping for.
  • The return that has gained from different factors varies between 8 - 8.5% to 12% for commercial building and 4% - 6% in residential.
  • Whether the property is for residential or for investment is also a determining element, as is the native demand-supply condition

While spending money in India, the locality of infrastructure or utilities such as electricity, internet connectivity, security and good investment plans have to be examined.

Q13. What is a single window clearance?

Ans.: In India, the single-window clearance is used in construction. At times, the clearance may be complex, because of the involvement of different authorities. Suppose you want to construct a multi-story building, then you need to take approval from town planning authorities, consent in design and lifts & fire fighting agencies. Determined attempts are about to create the process easier and crystal clear, though.

Q14. How is the sanctioning authority and monitoring authority different in India?

Ans.: (a) In several regions, the Municipal authority is the sole examining authority.
(b) In smaller regions and in villages, the urban and national planning corporation works as the examining authority.
(c) In a metropolis where most of the construction carries out, the central authority manages responsibility in offering the final consent and affirming drawings and ideas. Consents on power, water supply and other benefits available from here.

The new foreign direct investment guidelines describe that the minimal investment has to be USD 5 million for 51% shareholding. Does this involve investment of subsidiaries too?

a) Suppose you have a completely owned subsidiary of a foreign organization then the minimal capitalization guideline is USD 10 million.
(b) If you have a joint venture, the ratio 74:26 or 51:49 is immaterial. For a joint venture, the minimum capitalization is USD 5 million in foreign exchange.
(c) The minimal amount of abroad exchange is needed to reach within half an year from the date of establishment of the enterprise.

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