NRI FAQs 

Flamingo is a trusted partner for NRIs from Nigeria to Dubai to San Francisco. We make it easy for NRIs to invest in upcoming economic hubs in Bangalore & Mysore and also help them manage their properties. 

Here are some guidelines for NRIs wanting to buy property in India.

Are you an NRI?

Under the Foreign Exchange Regulation Act of 1973, Non-Resident Indians are:

  • Indian citizens who stay abroad for employment or carrying on business or vocation outside India or for any other purpose in circumstances indicating an indefinite period of stay abroad; OR
  • overnment officials who are posted abroad on duty with the Indian missions and similar other agencies set up abroad by the Government of India OR
  • Government officials deputed abroad on assignments with foreign Governments or international agencies like the World Bank, International Monetary Fund (IMF), World Health Organisation (WHO), Economic and Social Commission for Asia and the Pacific (ESCAP) OR
  • Officials of the State Government and Public Sector Undertakings deputed abroad on temporary assignments or posted to their branches or offices abroad.
  • A foreign citizen is deemed to be of Indian Origin if : i) he held an Indian Passport at any time or ii) he or his father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955. However this does not apply to citizens of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal.

Do you require Government permission to buy property?

NRI's do not require any permission to buy any immovable property in India except for agricultural land, plantation property or farmhouses.

How do I fund the purchase?

Funds can be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from any NRI accounts maintained with banks in India.

Is there a cap on property purchases by NRIs?

There are no limits on the number of residential properties that may be bought by an NRI. However, repatriation (the process of converting a foreign currency into the currency of one's own country) is allowed for a maximum of 2 properties.

Renting out residential / commercial properties by NRIs

NRI/PIOs can rent out their immovable property without seeking any consent from the RBI. The rental income being a current account transaction is repatriable outside India, if proper tax is paid or provided for.

RBI guidelines for loans to NRI's & PIO's

The guidelines are:

  • The loan amount shall not exceed 85% of the cost of the housing unit.
  • Own contribution, which is the cost of housing unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in Indiq.
  • Reimbursement of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and/or Non-Resident Special Rupee account [NRSR] in India.

Loan tenure & repayment

Repayment of the loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investors' NRE/FCNR/NRO accounts, subject to age of the applicant.

Documents to be submitted along with the application by NRIs:

The following documents are normally to be submitted along with the application:

  • (a) Photocopy of the appointment letter / labor contract and English translation duly countersigned by your employer
  • (b) Latest salary certificate (in English) specifying the following: Name (as it appears in the passport) , Date of joining , Passport Number, Designation , Perquisites and salary.
  • (c) Photocopy of Employee card / labor card/identity card
  • (d) Photocopy of valid resident visa stamped on the passport
  • (e) Photocopy of monthly statement of local bank account for the last 4 months
  • (f) Property related documents