About NRI

If you are a Non-Resident Indian and dream of owning a home back in India, you have reached the right place. With HDFC loan you can buy or build a house, extend or renovate a house or buy land to build a house.

Who is a NRI?

A person resident outside India who is a citizen of India or a person outside India who is of Indian origin is a NRI

The definition of Person resident outside India is defined under section 2(w) of Foreign Exchange Management Act, 1999 is as under:-

?person resident outside India? means a person who is not resident in India?

A person shall be deemed to be a person not resident in India in the following cases:-

• 1. When the person stays in India for less than or upto 182 days during the preceding financial year
• 2. When a person who has gone out of India or who stays outside India, in either case ?

• (a) for or on taking up employment outside India, or
• (b) for carrying on outside India a business or vocation outside India, or
• (c) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;

Who is a PIO?

• A. The definition of Person of Indian Origin is defined under section 2 (b) of Foreign Exchange Management (Borrowing and lending in rupees) Regulations, 2000 and under section 2 (xii) of Foreign Exchange Management (Deposit) Regulations, 2000 as given under:-

(i) he at any time held Indian passport; or

(ii) he or either of his parents or any of his grand- parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or

(iii) the person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b)?

• B. Person of Indian Origin (PIO) for the purpose of acquiring immovable property in India as given under:-
  

  “Person of Indian origin' means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who

  (i) at any time, held Indian passport; or

  (ii) who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955)?

  The following regulations are applicable for granting Housing Loans in rupees to a Non-Resident Indians

  A housing finance institution in India approved by the National Housing Bank may provide housing loan to a non-resident Indian or a person of Indian origin resident outside India, for acquisition of a residential accommodation in India, subject to the following conditions, namely:-
  

• (a) The quantum of loans, margin money and the period of repayment shall be at par with those applicable to housing finance provided to a person resident in India. Thus, the quantum of loans shall not exceed 80% of the cost of the property funded.
  
• (b) Own contribution (margin money), which is the cost of dwelling unit financed less the loan amount, shall be paid by the borrower by remittances from outside India through normal banking channels or out of funds in his Non-resident External (NRE)/Foreign Currency Non-resident(FCNR)/Non-resident Non-repatriable (NRNR)/ Non-resident Ordinary (NRO)/Non –resident Special Rupee (NRSR) account in India,
  
• (c) The loan amount shall not be credited to Non-resident External (NRE) / Foreign Currency Non-resident (FCNR)/Non-resident Non-repatriable (NRNR) account of the borrower;
  
• (d) The loan shall be fully secured by equitable mortgage of the property proposed to be acquired, and if necessary, also by lien on the borrower's other assets in India;
  
• (e) The instalment of loan, interest and other charges, if any, shall be paid by the borrower by remittances from outside India through normal banking channels or out of funds in his Non-resident External (NRE)/Foreign Currency Non-resident(FCNR)/Non-resident Non-repatriable (NRNR)/ Non-resident Ordinary (NRO)/Non –resident Special Rupee (NRSR) account in India, or out of rental income derived from renting out the property acquired by utilisation of the loan (or by any relative of the borrower in India by crediting the borrower’s loan account through the bank account of such relative.

Explanation ? the word relative as defined under section 6 of the Companies Act, 1956 is as given under:-

?A person shall be deemed to be a relative of another if, and only if, -

• (a) they are members of a Hindu undivided family; or
• (b) they are husband and wife; or
• (c) the one is related to the other in the manner indicated in Schedule IA of the Companies Act, 1956.]”

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