Yes, NRI can purchase any immovable property in India such as investing in real estate property. As real estate transactions fall under purview of the Foreign Exchange Management Act (FEMA), a Non-Residential Indian or individual who is of Indian origin can acquire possession other than a cultivation land or a manor house that is either gifted or inherited by the NRI.

For processing huge exchange of amount for property deals in India, NRI/PIO [Person of Indian origin] can submit the payable amount via:

• Funds remitted to India through normal banking channel.
• Funds held in NRE/FCNR (B)/NRO account maintained in India.

Note: No payment can be made outside India. Also, payment made through travellers cheque or any type of foreign currency will not be accepted.

Yes, NRI’s are eligible for loan like any other Indian citizen. The RBI has given a general permission to banks and housing finance companies registered with the National Housing Bank to provide loans to NRI;s for buying residential property within India. Home load can be granted only in Indian rupees for the respective purchase made. An NRI can avail for loan, on up to 80 per cent of the property value of the investment varying on the eligibility of the individual. Loan can be repaid by the means of:

• Inward remittance through normal banking channels.
• By debit to his NRE/FCNR (B)/NRO account.
• Out of rental income from such property.
• By the borrower’s close relatives, as defined in Section 6 of the Companies Act, 1956, through their account in India, by crediting the borrower’s loan account.

This procedure follows certain guidelines directly. An NRI or Person of Indian origin (POI), who has Indian descent or was born in India may repatriate the proceeds from the sale of former purchased property in India on the defined terms and conditions by the law such as:

• The property must have been purchased in accordance with the FEMA directives, applicable at the time of purchase.
• The amount repatriated cannot exceed the original amount paid for the property, if the property was acquired in foreign exchange remitted through normal banking channels or out of funds held in an FCNR (B) account.

PIO stands for Person of Indian Origin. The term specifies that the individual do not belong to Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan as a citizen and is an Indian by origin. An individual who at any time held an Indian passport, or either his parents or grandparents were a citizen of India according to the Indian Constitution or the Citizenship Act, 1955, or has Indian descent is considered as a PIO in the country, India.

So as per legal rights and laws of the judiciary, focusing on these criteria’s the Person of Indian Origin can be permitted and is completely authorised to make any or multiple purchase or deal on properties that are within the Indian states.

Like any other Indian citizen an NRI has to submit all the documents mentioned under the home loan section. For specifying their citizenship in the foreign country that they belong, these are few essential documents that needs to be presented and submitted at the time of the loan processing and adherence. These includes:

• A copy of the passport.
• A copy of the works contract or the labour card.
• The power of attorney (POA).

Note: Power of attorney is only required because the borrower is not based in India.