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NRI Corner
1. Who is a Non - Resident Indian (NRI)?

A citizen of India who stays abroad for employment or for carrying out any business for an uncertain period of time is considered as a non-resident. People who are posted in U.N. organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also considered as non-residents. Non-resident foreign citizens of Indian Origin are treated on par with NRIs and are offered the same facilities.


2. What is an OCB?

OCB (Oversees Corporate Bodies) are the bodies that are mainly owned by the individuals of Indian nationality or origin resident outside India. OCB includes all the overseas companies, trusts, partnership firms, societies and corporate bodies which are indirectly or directly owed by at least 60% of individuals of Indian nationality or origin resident outside India. However, the ownership interest should be actually held by them and not by the nominees.


3. What are the various facilities available to NRIs?

Various facilities offered to the NRI's are as follows:
• They can maintain their bank accounts in India
• They are allowed to invest in securities/shares/deposits of Indian companies and firms
• They are allowed to invest in immovable properties in India


4. Do Non-Resident Indian citizens need permission of RBI (Reserve Bank of India) to acquire residential and commercial property in India ?

NRI's are not required to take any permission of RBI while acquiring any residential and commercial property in India


5. Do foreign citizens of Indian origin need permission of RBI(reserve bank of india) to purchase immovable property in India for their residential use?

Reserve Bank of India has given permission to the foreign citizens of Indian origin to purchase immovable property in India for their residential use. Hence, they do not need to acquire any permission.


6. What are the formalities that are needed to be completed by foreign citizens of Indian origin while purchasing residential immovable property in India under general permission?

While purchasing a residential immovable property in India, the foreign citizens of Indian origin are required to file a declaration in form IPI 7 with Central Office of Reserve Bank at Mumbai within 90 days from the date of purchase of that immovable property.
They can also submit a final payment of purchase consideration along with a certified copy of document which is an evidence of transaction and the bank certificate of the consideration paid.


7. Can the foreign citizens of Indian origin sale property without the permission of RBI (Reserve Bank of India)?

Reserve Bank of India has give permission to foreign citizens of Indian origin to sale a property. However, wherever the property is purchased by them, the funds towards the purchase consideration should be either remitted to India or the paid out of balances in NRE/FCNR accounts.


8. Can foreign citizens of Indian origin acquire or dispose of residential property by way of gift?

Reserve Bank of India has given permission to foreign citizens of Indian origin to acquire or dispose of a residential property by way of gift from or to any relative who is a citizen of India or a person of Indian origin (in case he is not the citizen of India) subject to compliance with applicable tax laws.


10. Can the properties (residential/commercial) be given out on rent if not required for immediate use?

Reserve Bank of India has given permission to rent out any immovable residential/commercial property in India. However, the rental income or proceeds of any investment of such income are eligible for repatriation.


11. Are Indian companies allowed to grant loans to their NRI staff?

Reserve Bank of India has given permission to the Indian companies or firms to grant housing loans to the NRI's. However, there are certain terms and conditions that are needed to be met.


12. How and where to pay stamp duty in Karnataka?

In Karnataka, you can pay the stamp duty through:

Impressed stamps from licensed stamp vendors Adhesive stamps
By making payment through DD/pay order issued by a nationalized bank or scheduled bank or challan
Writing on a plain piece of paper and paying the stamp duty through DD/pay order issued by a nationalized bank or scheduled bank or challan within two months from the date of execution and getting it certified from the jurisdictional District Registrar or Sub Registrar.


13. When should the stamp duty be paid according to the law in Karnataka?

According to the law in Karnataka, you should pay the stamp duty before or on the date of executing a document. You can note down the document on a plain piece of paper and pay the stamp duty through DD/pay order issued by a nationalized bank or scheduled bank or challan within two months from the date of execution. You will have to get it certified from the Sub Registrar or jurisdictional District Registrar.


14. What is the procedure to pay the stamp duty in case the document is executed out of India and is to be used in Karnataka?

It is compulsory to pay the stamp duty within three months from the date of receipt in India. You will be required to produce the document before the District Registrar and he will certify the payment.


15. How to prevent the use of fake stamp papers?

Note the document on a plain paper or a Rs.2. Document Sheet. You can pay the stamp duty at any authorized bank or at the jurisdictional Sub-Registrar Office.


Loans for NRI
If you are a NRI, acquiring a home loan in India can be a complicated and a confusing process. Go through the following information to understand the process of receiving a home loan.


1. NRI

The Non-Resident Indians (NRIs) are recognized under the Foreign Exchange Regulatory Act, 1973. Every bank and housing finance companies follow the RBI guidelines to define NRI - "An Indian citizen who holds a valid document like Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI."


2. NRIs qualifying for NRI home loans

Indian citizens who stay abroad for employment or for carrying on business or vocation outside India or for any other purpose in circumstances indicating an indefinite period of stay abroad.

Government servants who are posted abroad on duty with the Indian missions and similar other agencies set up abroad by the Government of India where the officials draw their salaries out of Government resources;

Government servants deputed abroad on assignments with foreign Governments or regional/international agencies like the World Bank, International Monetary Fund (IMF), World Health Organization (WHO), Economic and Social Commission for Asia and the Pacific (ESCAP)

Officials of the State Government and Public Sector Undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad.

* Note :
Documents required for Resident Indians as well as for NRIs for getting Home Loans are different in some respect. Home loans for NRIs are available for construction of new house / flats, purchase of old house / flat addition / alteration to an existing house and repairs / renovation etc. NRIs can avail of loans by mortgaging an existing residential property. However, for availing home loans, NRIs have to fulfill certain conditions according to provisions of the Income Tax Act. They should have stayed in India for a period of 182 days or more within an assessment year or they should have stayed in India for at least a total of one year or more.

The FDI Policy that permits FDI up to 100% from foreign/NRI investor under the automatic route has boosted NRI confidence. Banks have attractive NRI housing schemes to accommodate the housing needs of NRIs. From the stables of HFCs, NRI housing finance plans with suitable repayment options are available.

Last but not the least, NRIs should take due care while selecting their home loan provider companies or HFCs. Considering the geographical distances involved, it is significant that loan seekers associate with a proactive and responsive HFC.


3. NRI loan eligibility

The eligibility criteria of NRIs differ from Resident Indians based on a few parameters. The parameters include:

Age : The loan applicant has to be 21 years of age.

Qualification : The NRI loan seeker has to be a graduate.

Income : The loan applicant has to have a minimum monthly income of $ 2,000 (although, this criterion may differ across HFCs). The eligibility is also determined by the stability and continuity of your employment or business.

Payment options : The NRI also has to route his EMI (Equated Monthly Installments) cheques through his NRE/NRO account. He cannot make payments from another source say, his savings account in India.

Number Of Dependants : The number of dependents, assets and liabilities also determines the eligibility of the applicant.

An NRI applicant is eligible to get a home loan ranging from a minimum of Rs 5 lakhs to a maximum of Rs 1 crore, based on the repayment capacity and the cost of the property, which although is variable by the priorities of the home loan provider. Also Home Loan Tenure for NRIs is different from Resident Indians. An applicant will be eligible for a maximum of 85% of the cost of the property or the cost of construction as applicable and 75% of the cost of land in case of purchase of land, based on the repayment capacity of the borrower.

However, a NRI can enhance his loan eligibility by applying for home loans with a co-applicant who has a separate source of income. Also, the rate of interest for home loans to NRIs is higher than those offered to Resident Indians. The difference is to the extent of 0.25%-0.50%. Some HFCs also have an internally earmarked 'negative criterion' for NRI home loans. As such, the NRIs who hail from locations that are marked as being 'negative' in the books of HFCs, find it difficult to get a home loan.


4. RBI directive loans:

The Reserve Bank of India (RBI) has clarified that Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO), purchasing immovable property in India should pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country.

The NRIs and Resident Indians can also acquire immovable property in India other than agricultural property, plantation or a farmhouse. It has issued certain directive for sanctioning home loans to Non-Resident Indians.

The guidelines provided are: The home loan amount should not exceed 85% of the cost of the dwelling unit, as the remaining amount that is 15% needs to be provided an own contribution towards the cost of unit financed. The cost of dwelling unit which is own contribution financed less the loan amount, can be met from direct remittances from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and /or Non-Resident (Ordinary) [NR (O)] account in India.

However, repayment of the loan, comprising of the principal and interest including all the charges are to be remitted to the HFC from abroad through normal banking channels, the Non-Resident (External) [NR(E)] Account and /or Non-Resident (Ordinary) [NR (O)] account in India.


5. Documents required for loan:

The documentation required to be submitted by the NRIs are different from the Resident Indians as they are required to submit additional documents, like a copy of the passport, a copy of the works contract, etc. And of course NRIs have to follow certain eligibility criteria in order to get Home Loans in India.

Another vital document required while processing an NRI home loan is the power of attorney (POA). The POA is important because, since the borrower is not based in India; the HFC would need a 'representative' 'in lieu of' the NRI to deal with and if needed. Although not obligatory, the POA is usually drawn on the NRI's parents/ wife/children.

The documents needed for obtaining NRI home loans are:

• Passport and Visa
• A copy of the appointment letter and contract from the company employing the applicant
• The labor card/identity card (translated in English and countersigned by the consulate) if the person is employed in the Middle East Salary certificate (in English) specifying name, date of joining, designation and salary details
• Bank Statements for the last six months


6. List of classified documents for salaried and self employed NRI applicants:

Salaried NRI Applicants

• Copy of valid passport showing VISA stamps
• Copy of valid visa / work permit / equivalent document supporting the NRI status of the proposed account holder
• Overseas Bank A/C for the last 3 months showing salary credits
• Latest contract copy evidencing Salary / Salary Certificate / Wage Slips

Self-Employed NRI Applicants

• Passport copy with valid visa stamp
• Brief profile of the applicant and business/ Trade license or equivalent document
• 6 months overseas bank account statement and NRE/ NRO account
• Computation of income, P&L account and B/Sheet for last 3 years certified by the C.A. / CPA or any other relevant authority as the case may be (or equivalent company accounts)


7. Property documents:

• Original title deeds tracing the title of the property for a minimum period of the last 13 years
• Encumbrance Certificate for the last 13 years Agreement of sale /construction, if any
• Receipts for payments made for purchase of the dwelling unit
• Approved plan / license
• ULC clearance /conversion order etc
• Receipts for having invested the margin money through normal banking channels from the Non-Resident (External) account in India and / or the Non-Resident (Ordinary) account in India
• Latest tax paid receipt
• Allotment letter from the co-operative society / association of apartment owners
• Agreement for sale / sale deed /detailed cost estimate from Architect / Engineer for property to be purchased / constructed /extended / improved
• Copy of approved drawings of proposed construction/purchase/extension


8. Photocopy of PIO card:

If the PIO card is not available, photocopies of any of the following documents:

• The current passport, with birthplace as 'INDIA'
• The Indian passport, if held by the individual earlier
• Parents/grandparents Indian passport/birth certificate/marriage certificate substantiating the individuals claim as a person of Indian origin


9. Permissions and approvals:

Before a construction can begin, the builder must seek several permissions and approvals from relevant bodies. Without these clearances, the construction may come under litigation.


Schedule a Meeting
Call +91 9343 941001
OR
Juliet Quadros
Managing Director
Leslie Quadros
Marketing Director
Leo Quadros
Chairman
Near Nandi Hills, Melekote Cross, Tubugere Hobli, Doddaballapura Taluk,
Bangalore - 561205
info@regencyblr.com
City Office
Bangalore Regency Developers Pvt. Ltd.
13/2, El-Shaddai, Beside Assisi Church,
Hennur Road,
Bangalore - 560084
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