How to Buy Property in
India as an NRI

06 September, 2018

On 26th March 2016 Indian government enacted Real Estate Regulation Development acts. The functioning of law came into effect from May 1, 2017.

I feel that this is a wise decision, as it is always best to keep your roots firm in your hometown. You never know, what might happen, when. With favorable currency rates, the real estate area is seen as one of the hot spots for Indians living abroad.

Conditions for Purchase

But the Indian government has its own ideas too. As you can see, the RBI permits NRI’s in limited purchases in the fixed property.

As an NRI, you can buy residential and commercial property but cannot purchase plantations or agricultural land. On this condition, you can purchase any number of properties and you need not inform the RBI, regarding your purchases.

But, if you are buying agricultural land or plantation property, you will need an approval from the RBI and the Indian government. Currently, I have found that NRIs prefer to acquire farmhouses in India.

Purchasing a farmhouse too requires approval from the government and the RBI.


Properties can be purchased by NRI’s through a home loan in Rupees. You can make payment only through banking channels.

You cannot use any foreign currency or your traveler’s cheque for this purpose. You can, however, use the money from your FCNR or NRE or NRO account.


The EMI’s can be done through the Indian currency or can be directly remitted from abroad. If the NRI is receiving income through rent, the rent amount can also be used to make EMI payments.

If you are an NRI, you need not have any worries about your future home or property in India. As you can see, everything is made easy for you and provisions are made for easy payments.

Own Residential Property:

If you are buying the property for your own residential purpose, you can get a home loan of up to Rs. 100 lakhs to service the loan. This can be obtained against your FCNR or in your NRE account.

You can purchase the property in your own name. You can also purchase it jointly with another NRI.

But you cannot purchase the property jointly with a resident Indian. You cannot purchase it jointly with another person who cannot invest in Indian property.

Applying for a Loan

As an NRI, you can get your home loan from banks and other housing financial institutions too.

All companies that are registered with National Housing Banks have permission from the Reserve Bank of India, to provide loans to NRI, for the purpose of buying Indian residential property.

The loans will be sanctioned in the Indian rupee and the payment is also to be made in the Indian currency. With global growth, people keep shifting their occupations and their countries.

But, I have observed that each person cannot give up contact with their hometown and love to keep in touch with their country too. Your love for your own country makes such investments essential.

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