Who is a Non Resident Indian (NRI)?
A NRI is a person residing outside India who is either a citizen of India or a person of Indian origin who has migrated to another country.
Who is a Person of Indian Origin (PIO)?
A person of Indian origin is an individual (excluding a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, Nepal, Iran, China, or Bhutan) who :
- held an Indian passport at any time, or
- whose father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act of 1955
Can a NRI / PIO sell / buy property without the permission of the Reserve bank of India?
What kind of properties can NRIs buy in India?
A non-resident Indian can buy any residential or commercial property in India. There is a limitation to buy agricultural land, farmhouses, and land for plantation.
How should the purchase of residential immovable property be paid for by an NRI / PIO under the general permission?
The purchase consideration should be met either out of inward remittance in foreign exchange through normal banking channels or out of funds from NRE / FCNR / NRO accounts maintained with banks in India.
Can NRIs buy and sell property without their presence in India?
A Non Resident Indian cannot buy or sell his / her property without being present in India. They have to be present (a proof of their presence has to be attached along with the application) to obtain a NOC (no objection certificate), and for the registry at the Registrar’s office. We at MIRPL can expedite and formulate this process.
What financing options do NRIs have for the residential / commercial property they buy?
The Reserve Bank of India has given certain banks the authorization to grant loans to NRIs taking into account the various tax laws that apply. Loans are also available through licensed agents. The total tenure of the loan cannot exceed 15 years.
What precautions should I take when purchasing a property that is not newly built?
You have to make sure
- that the documents provided to you are not color photocopied,
- verify that all documents are valid and true in every nature,
- cross check with legal authority as to the validity of the current owner with the property documents provided,
- get a no encumbrance certificate to find the true owner and to see if the property is not mortgaged to any financier
- all tax papers should be up to date
What is the purpose and why is it necessary to register a property?
By registering the transaction it becomes a permanent public record and the title can be acquired only if the deed is registered.
What are my tax implications with regard to capital gains?
If you purchase a new property and invest the entire capital gained by selling your old property within 2 years then you are not liable to pay any capital gains tax.
How is the value of property and the rent determined?
There is no prescribed way to determine the value or rent of a property. These values can be determined by consulting individuals like brokers, registration authority, etc.
How do you work on the requirements of your clients?
We at MIRPL work on a solitary mandate, which lets us scrutinize parties so that we can provide our clients with utmost responsibility, faith, and a smooth business transaction. Our clients are updated on a regular basis on the progress of their requirement.
Do you provide various services like leasing and maintenance of property?
We provide various services like buying and selling, construction, renovation, leasing and maintenance, interior decoration, consultation, etc. of property for both NRIs and Indian nationals at a cost borne by the owner of the property. All transactions are documented.
What are the different purposes for which I can apply for a home loan?
Home loans can be to purchase a plot for construction of a house, to purchase or construct a house or a flat, as well as for renovation / modification / extension / repair / alteration of a house or a flat.
What documents are required for a home loan?
The following documents are needed while applying for a bank loan
- bank home loan application
- proof of identity,
- residence proof,
- all legal documents related to the property being bought,
- last 6 months bank statements & last 3 years ITR,
- and any other document depending upon the particular bank requirement.
How will my bank determine my eligibility of a home loan?
The bank will determine you eligibility on your capacity to pay the EMIs. The capacity to pay your EMI depends on your disposable income. The banks want to ensure that you comfortably pay your loan on time. Higher the disposable income, higher the loan amount.
What is an EMI?
Full form of EMI is equated monthly installment. An EMI is a combination of both the principal and interest, and they start from the day full disbursement of the loan has been made.
How does the tenure of the loan affect my monthly payments (EMIs)?
A simple rule applies - longer the tenure of the loan the lower will be your EMI and vice versa. Your total loan cost (principal + interest) would be higher as you would end up paying interest for a longer period.
Is there a penalty for prepayment or full payment of a home loan before it's full tenure?
Based on a recent regulation no penalty can be assessed by any bank on prepayment or full payment of a bank loan before it's maturity.