Q. What way the Non-resident Indian can finance the flat?

Ans. The purchase of the flats can be financed from the fresh remittance through the normal banking channels or from payment from original non-resident account or from Non-resident (External) Accounts. When the flat is under construction, it may be possible to get instalment facilities from the builder. The may also be available in India for purchase of flats, for example from Housing Development Finance Corporation, ANZ Grindlays Bank, Citi Bank etc.
Non-resident Indians who are citizens of India (India Passport holders) are eligible for housing finance for the acquisition of an immovable property or construction of a new house, or a flat for their occupation or for that of their family in India. But the HDFC also considers granting of loans to non-resident Indians even if they are abroad provide a family member in India is made a co-borrower and a power of attorney is given to his representative in India.

Q. Non-resident Indians are staying abroad can the property be purchased through the agent or through the Power of Attorney?

Ans. The non-resident Indians who are staying abroad may an agreement through their relatives by executing the Power of Attorney in their favour as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or Developer, drafting and signing of agreements, taking possession, etc.). These formalities can be completed through some known person who can be given the Power of Attorney for this purpose. Power of Attorney should be executed on the stamp paper before the proper authorities in foreign countries. Power of Attorney cannot be drafted on the stamp paper bought in India.

Q. Can the rental income from such property be remitted outside India?

Ans. No. Such income cannot be remitted abroad and will have to be c#0033ffited to the ordinary non-resident rupee account of the owner of the property.Question Answers Regarding Exchange Control Regulations in Respect of NRI investment in movable property.

Q. Do non-resident Indians require permission to transfer any immovable property in India to a person resident in India ?

Ans. No specific permission is requirement by Non-resident Indians to transfer any immovable property in India to a person resident in India.

Q. Do non-resident Indians require permission to transfer any immovable property to a person of Indian origin resident outside India/Non-resident Indian ?
Ans. No specific permission is requirment for said transfer of any immovable property, other than agricultural, or plantation property or farm house.

Q. How should the purchase consideration for acquiring immovable property in India, be met?

Ans. The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from Non-resident accounts maintained with banks in India

Q. What way the Non-resident Indians can finance the flat?

Ans. The purchase of the flats can be financed from the fresh remittance through the normal banking channels or from payment from non-resident accounts. When the flat is under construction, it may be possible to get instalment facilities from the builder. Loan may also be available in India for purchase of flats, for example from Housing Development Finance Corporation, ANZ Grindlays Bank, Citi Bank etc.

Q. Can NRI/PIO rent out their immovable property in India?

Ans. Yes. The NRIs/PIOs can freely rent out their immovable property in India without seeking any permission from the Reserve Bank. The rental income being a current account transaction is freely repatriable outside India.

Q. Where can one contact with RBI for clarifications/approvals etc. in respect of immovable property in India?

Ans. The Chief General Manager, Reserve Bank of India, Central Office, Exchange control Department, Foreign Investment Division (III), Mumbai - 400 001.