Que:Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?

A: Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self occupation subject to certain conditions. The purpose of loan margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investor's NRE / FCNR / NRO Accounts.

Que: Can authorised dealer grant loans to NRIs for acquisition of a flat/house for residential purposes?

A: Authorised dealers have been granted permission to grant loans to non-resident Indian nationals for acquisition of house/flat for self-occupation on their return to India subject to certain conditions 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.

Que: Can authorized dealer grant housing loan to non-residents of Indian originality where he is a principle borrower with his resident close relative as a co-obligent / guarantor or where the land is owned jointly by such NRI borrower with his resident close relative?

A: Yes. However, in such cases, the payment of margin money and repayment of the loan installments should be made by the NRI borrower.

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