No matter in what part of the world you are in, it is said that the heart always craves for the home. So it’s natural that even as an NRI you have always wanted to buy a house back in India. It might be anything ranging from a palatial property in your hometown or a luxurious apartment in an upcoming cityscape. Whether you buy it for your family or just as a part of your investment, purchasing property in India is always a big decision for every NRI.
Investing in real estates in India is a very lucrative prospect for every NRI. Especially because they earn in a stronger currency and have to pay in rupees. Moreover, they can take loans from Indian banks to buy Indian property very easily.
The Foreign Exchange Management Act 1999 defines an NRI as someone who lives in any country other than India because of employment issues and is so employed in salaried job or a business abroad that he/she has no plans of returning to India within a pre-determined period of time. It is also specified under the act that any Indian who has stayed outside India for more that 182 days in the previous year would be considered as an NRI.
However, an NRI is eligible to purchase only two residential properties within India. This has got no connection with your properties abroad. But there are no such limitations in buying commercial properties. On the other hand, NRIs aren’t allowed to buy agricultural land in India at all.
So naturally, NRI home loans are formulated for buying, constructing or refurbishing a new or existing house. Loans are also available for obtaining plots of land designated for residential use.