Compiled for NRI’s investing in India

An NRI, as defined by the FEMA act of 1999, refers to Indian citizens or foreign nationals of Indian origin residing outside the country for business, employment, or other vocations. It signifies their intention to stay abroad indefinitely. Indians who stay in the country for less than 182 days are also considered NRIs.
OCI, or Overseas Citizenship of India, opens doors for foreign citizens of Indian origin to embrace their heritage and build a meaningful life in India. Introduced in 2005, this immigration status allows you to work and live in the country indefinitely, fostering a strong connection with your roots.
PIO, or Person of Indian Origin, encompasses individuals who hail from countries other than,

  • Afghanistan
  • Bangladesh
  • Bhutan
  • China
  • Nepal
  • Pakistan
  • Sri Lanka

Additionally, those who have held an Indian passport in the past or possess grandparents or parents who are Indian citizens, as per the Citizenship Act 1955 or Indian Constitution, are also considered PIOs.

India warmly welcomes NRIs and PIOs to become proud property owners in the country. The RBI has granted general permission that extends this privilege to these categories of individuals. Whether you’re an NRI, an Indian citizen living abroad, or a PIO with strong connections to this land, you can now make your real estate dreams come true.
As an NRI investor, you have the opportunity to realize your dream of owning an apartment in India with the support of financial institutions. Funding your purchase is possible, given that you meet the eligibility criteria and the property documents are in order. As per RBI norms, financial institutions can fund up to 80% of the property’s value, while the remaining portion is to be covered by your personal resources.
NRIs have the unique privilege of investing in a diverse range of properties in India. From luxurious residential apartments to thriving commercial spaces. However, the RBI prohibits NRIs from investing in agricultural and plantation land. Moreover, the purchase of farmhouses is also restricted under the existing guidelines.
There are some essential documents NRI Investor need to have in your possession. These documents play a crucial role in ensuring a seamless and hassle-free property purchase process. Here’s a comprehensive list of the documents you’ll need:

  • PAN Card (Permanent Account Number)
  • Passport Size Photographs
  • OCI/PIO Card (In case of OCI/PIO)
  • Address Proof
  • Passport (In case of NRI)
Documents required from an individual to present for home loans:

  • Copy of their employment contract and work permit.
  • Recent salary slips and Bank statements of the last 4 months or NRO/NRE a/c statements for the last six months.
  • Visa or Passport Copy
  • Address Proof or Utility Bill
  • OCI or PIO card
  • Client credit report
  • Power of attorney according to the respective bank’s format
  • The agreement for property and related documents
  • The proof of Income tax returns for the past 2 years.
  • ITR or Income Tax Returns for three years
  • Visa or Passport Copy
  • OCI or PIO card
  • Power of Attorney according to the respective banks format
  • Bank account statements of individual and company for past 6 months
  • Profit and Loss statements and Balance sheets for the company for the past three years.
  • The documents related to property agreement.
As an NRI planning to invest in an under-construction property, you may come across the term “Power of Attorney” (PoA) during your documentation process. Don’t be alarmed; it’s a common practice that can streamline the process for you.

With a PoA, you grant someone the authority to act on your behalf. This can include executing contracts, deeds, mortgages, leases, and even property sales. It’s essential to ensure that you clearly define the extent of authority granted in the PoA.

As an NRI or OCI seeking to invest in your dream property in India, you’ll be pleased to know that any authorized dealer or financial institution in India, approved by the National Housing Bank, can assist you in securing a home loan. Here are essential guidelines to keep in mind:

  • Equal Opportunities: NRIs and OCIs are eligible to apply for a house loan with the same benefits and terms as those applicable to Indian residents.
  • Currency Considerations: The loan amount should not be credited to FCNR (Foreign Currency Non-Resident), NRNR (Non-Resident Non-Repatriable), NRE (Non-Resident External), or any foreign currency account.
  • Secure Investment: Your investment is protected by the equitable mortgage of the title deed for the proposed property. Additionally, it can also act as a lien, offering peace of mind for both borrowers and lenders.
As an NRI investor looking to make a wise real estate investment in India, there are crucial factors you should keep in mind to ensure a seamless and secure transaction. Follow these essential tips to safeguard your interests and make the most of your investment:

  • Clear Title Deed
  • Check for Mortgage Clearance
  • Necessary Clearances
  • Legal Verification
  • Buyer-Builder Agreement
  • No Dues Certificate
  • New Constructions and Civic Approvals


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