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NRI Investment

Home Financing Guide for NRI Buyers in India

Financing Options For NRI in India


nvesting In Indian Homes – An NRIs financial Checklist For Home Buying

Investment in real estate of NRIs has grown drastically over the last couple of years. With the introduction of RERA (Real Estate Regulatory Act) and GST (Goods and Services Tax), and because of the demonetization effect there is a positive sentiment attached to the real estate industry of India currently. Real estate developers are now more transparent in their business dealings and people are placing their trust with the builders for realizing their dreams of owning a home. This can also be said in terms of NRIs as we are now seeing a growth in the number of NRI investment options in India. There are also quite a few financing options for NRI's. Here’s how NRI’s can invest in Indian real estate:

  • Non-Residential External Accounts (NRE)
    These accounts can be savings, current or term deposit accounts, as per your convenience. Your earnings abroad are credited in this account in Indian rupees and aren’t taxed.

  • Non-Resident Ordinary Account (NRO)
    This account could either be a savings, current, term deposit or a recurring deposit account. This account is also a rupee account, but the amounts credited in here are taxable in India.

  • Foreign Currency Non-Resident (FCNR) Account
    This account, as the name suggests, is a foreign currency account and a term deposit one, at that. The interest earned on this account is tax-free in India.

Apart from the above-mentioned accounts, NRI home loans are available with better interest rates now and easily get sanctioned. And in many cases, your employer who is stationed in India can also sponsor you for a home loan. Banks and housing finance companies provide home loans to NRIs at good interest rates. While many NRIs might get perturbed by the idea of getting a home loan since you have to physically be present in the bank or the finance company that is no longer true. In its true sense, India has gone digital and NRIs can procure home loans online. All documentation and submission of details can be done online as well. The standard list of documents is passport, visa, photographs, proof of residence and employment proof. In many cases, they might need to do a verification with your employer depending on the nature of your occupation.

NRIs are subject to the same taxes as that of resident Indians they are entitled to the same tax benefits. The only restriction being, NRIs cannot invest in agricultural or farm land in India. If an NRI chooses to sell his property within 3 years, then his earnings are taxable by law. However, in cases of long term investment, the NRI is sure to make profits.

Due to the changing rules and regulations, real estate developers of the country are on their toes and are changing the way they conduct their business. However, the new norms don’t damage those who were already taking care of business in a professional manner. One of the leading real estate companies of Mumbai, Omkar Realtors is a trusted developer and is known for their well-appointed homes designed to suit the opulent lifestyles of its residents. From capacious living spaces to thoughtful amenities and strategic locations, Omkar Realtors builds homes keeping in mind the customer’s needs. Omkar Realtors has a myriad of home options that suits the dynamic needs of people and thus, is one of the best places to begin the search for your dream home.

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