Home Loans - NRI Investors
Reserve Bank of India (RBI) Guidelines on NRI Investment
I. PERMISSION FOR PURCHASE OF RESIDENTIAL
PROPERTY / COMMERCIAL PROPERTY.
- NRIs holding Indian passports — No permission required
- NRIs holding foreign passports — Intimation to RBI via form
Funds Through NRE / NRO accounts.
II. SALE OF PROPERTY1. Property held by NRIs in India can be sold. No permission is required from the Reserve Bank of India.
III. REPATRIATION OF SALE PROCEEDS1. Repatriation of proceeds from sale of residential property purchased on or after 26th May 1993 is allowed.
2. The RBI will consider repatriation of the consideration amount remitted in foreign exchange for the acquisition of 2 properties. The sale has to have taken place after 3 years from the date of final purchase deed or from the date of final payment.
3. Application of repatriation (IPI-8) has to be done within 90 days of the sale of the property.
IV. INCOME FROM PROPERTY1. NRIs can let out immovable property in India. The rental income from the investment has to be credited to the NRO account.
- Subject to changes from time to time
- E. & O.E.
RETURN ON INVESTMENT
1. RENTAL RETURNSThe rental returns on an investment in
- Residential property in Coimbatore is 5%-6% p.a.
- Commercial property in Coimbatore are normally in the range of 12%-15% p.a. on the invested amount.