Are NRIs eligible for housing loans to buy property from any bank in India

Question: Are NRIs eligible for housing loans to buy property from any bank in India?

Answer(s)

Raju Kanumuri: An authorized dealer or a housing finance institution in India approved by the national housing bank may provide housing loan to an NRI or a PIO, for the acquisition of residential accommodation in India, subject to the following conditions, namely

* The quantum of loans, margin money and the period of repayment shall be at par with those applicable to housing finance provider to a PIO.

* The loan must not be credited to NRE, FCNR, and NRNR account of the borrower.

* The loans shall be fully secured by equitable mortgage by deposit of the title deal of the property proposed to be acquired, and if necessary, also be a lien on the borrower's other assets in India.

* The installment of the loans should be paid by the borrower by remittances from outside India through normal banking channels.

* The rate of interest on the loans shall conform to the directives issued by the RBI, or as the case may be, the national housing bank.

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