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Q: Can an NRI / PIO avail of loan from an Authorized Dealer for acquiring a flat / house in India for his own residential use against the security of funds held in his NRE Fixed Deposit account / FCNR (B) account?

A: YES, Such loans are subject to the terms and conditions as laid down in Schedules1 and 2 to Notification No. FEMA 5/2000-RB dated May 3, 2000, as amended from time to time. Banks cannot grant...

Q: Can an NRI/PIO avail of housing loan in rupees from his employer in India?

A: Yes, NRI can avail housing loans from his employer in India.

Q: What kinds of property can NRI avail home loans for?

A: * To purchase a house which is either ready to move in, under construction or bought from another owner, an NRI is eligible to apply for home loans. Additionally, NRIs can apply for home loans - *...

Q: What is the repayment period for the home loans for NRIs?

A: The home loan offered to NRIs does not exceed 5 years in major cases. However, some financial institutions offer loans for a term of 7 years as well. The repayment for the loan is done through...

Q: What are the documents required for obtaining NRI home loans?

A: Apart from the documents mentioned under the home loan section for Indian citizens, NRIs are required to submit a few additional documents as well. These include: * A copy of the passport * A...

Q: How is the mode of payment for NRI home loans?

A: The housing loan needs to be paid upfront for the entire tenure of the loan by way of direct remittances from abroad through normal banking channels or from other financial accounts as may be...

Q: Can Indian companies grant loans to their NRI staff?

A: The Reserve Bank permits Indian firms to grant housing loans to their employees deputed abroad and holding Indian passport subject to certain conditions.

Q: Can loans/overdrafts be given to third parties against the collateral/security of NRI deposits in India?

A: Loans to third parties are allowed against the collateral/ security of NRI deposits subject to fulfillment of certain formalities. Loans/ overdrafts cannot be given for carrying on agricultural/...

Q: Can loans/overdrafts be given to third parties against the collateral/ security of NRI deposits in India?

A: Loans to third parties are allowed against the collateral/ security of NRI deposits subject to fulfillment of certain formalities. Loans/ overdrafts cannot be given for carrying on agricultural/...

Q: Can loans/overdrafts be repaid in Indian rupees?

A: Yes. Commercial rate of interest as applicable is charged if the adjustment is done in Indian Rupees.