NRIs (of
Indian nationality or foreign citizens of Indian Origin) can avail loans for the purpose
of acquiring flats / house in India for their own residential use against their NRE
deposit in India. The other salient features of this facility are listed below:- |
| a. |
Tenure: -
The
period of loan can not exceed the period of the NRE deposit/s pledged as securities. The
loan as well as the deposits can be renewed at the request of the borrower and the
depositor subject to prevailing RBI directives for interest rate/s. RBI directives, as
applicable from time to time, with reference to margin, interest rates.
The
period of loan can not exceed the period of the NRE deposit/s pledged as securities. The
loan as well as the deposits can be renewed at the request of the borrower and the
depositor subject to prevailing RBI directives for interest rate/s. RBI directives, as
applicable from time to time, with reference to margin, interest rates. |
| b. |
Re
payment: -
These
loans can be repaid out of the remittance from abroad or by utilising the proceeds of the
NRE deposits accepted as security for the funds held in FCNR / NRNR / NRE accounts of the
borrower. |
|
Repayment out of local sources i.e funds held in NRO account of the NRI
borrower also is permissible. However, commercial rate of interest will be charged in this
case by the Bank/s. |
| c. |
Use: -
The house / Flats / Constructed /
Acquired under this loan facility should be strictly for residential purpose and not for
commercial purpose. |
| d. |
Repatriation
Prohibited: -
The sale proceeds of
the House / Flat can not be repatriated outside India. The sale proceeds of
the House / Flat can not be repatriated outside India. |
Specific
Provisions: - Foreign citizen of
Indian origin has to obtain approval from RBI under section 31 of FERA 1973, for
acquisition of property. Foreign citizen of
Indian origin has to obtain approval from RBI under section 31 of FERA 1973, for
acquisition of property. |
In case of a resident who had availed of loan / over draft facility while
resident in India and who subsequently becomes Non Resident is now permitted to repay the
liability not only out of funds held in NRE / NRO account but also from the borrower's
FCNR and NRNR accounts. |
For further details: www.adcbindia.com |
