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The NRI's guide to buying a home in India: Everything you need to know

By Finserv MARKETS - Aug 21,2019
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NRIs Guide to Buy Home in India

Due to the state of the economy and the ongoing liquidity crisis in the country, property prices nationwide are at an all-time low and are expected to go back up again after the uncertainty of the upcoming election is over. Given this, it seems like now would be the best time to invest in or buy a property for you and your family.

However, if you are a Non-Resident Indian (NRI) and wish to purchase a property in India, there are some details and rules you must know. With a Home Loan available on Finserv MARKETS, you can get an online approval in less than 3 minutes and have the funds credited to your bank account within 24 hours. So what are you waiting for? Go ahead and take advantage of this lucrative market opportunity and buy your dream home.

Nature of property

NRIs are allowed to buy any form of property in India, other than agricultural land, farmhouses and any form of plantation property. If you wish to acquire such property as an NRI, you will have to seek out special approval from the Reserve Bank of India (RBI) and the government. NRI’s are allowed to buy commercial property in India as well.


When NRI’s sell property in India, TDS (tax deducted at source) calculation is done at the rate of 20.6% on long-term capital gains and 30.9% on short-term capital gains. However, final taxation rates are similar for both NRIs and resident Indians. NRI’s that come under a lower tax slab can apply for a return of the TDS when they are filing their income tax returns.

Documents required

It is critical to ensure that you have all the legal documents required to purchase a property as an NRI in place when you are buying a home. One of the most important documents required is your passport or if you hold a foreign passport then a Person of Indian Origin (PIO) card. If you are an individual who is not an Indian citizen but has the eligibility to be one, you will have to present an overseas citizen of India (OCI) card.

Another indispensable document is your Permanent Account Number (PAN) card, which you can obtain by filling out the online application. In addition to this, you will also need to have a power of attorney certificate as it will help in the registration, execution and sale of your property.

Power of Attorney

It is almost impossible for an individual to keep travelling back and forth from their country of residence to India and hence to ease the procedure of maintaining and executing the property, individuals can appoint a power of attorney. Granting someone the Power of Attorney allows them to make decisions and sign documents on your behalf and saves you the trouble of being physically present for all these decisions.

Payment Options

In most cases, individuals are highly unlikely to have all the liquid funds required to purchase a property. As per provisions made by the RBI, NRIs can get home loans in India. Any bank or financing company registered with the National Housing Board is eligible to grant house loan to NRIs who are planning to buy a property in India. The loan can be used to purchase land, apartment, house or renovation.

Also, read about prepayment of home loan.

Furthermore, there is no restriction on the number of commercial or residential properties an NRI can purchase or build. Here it is important to note that banks accept directly credit the funds to the NRI’s account and instead money have to disbursed by the seller of the property. All transactions need to be done in Indian rupees and see their Non-Resident External account (NRE), Non-Residential Ordinary (NRO) account or Foreign Currency Non-Residential (FCNR) account for sending and receiving funds.

Bajaj Finserv Home Loans, available on Finserv MARKETS, come with instant approval and offer incredibly flexible repayment tenure of up to 300 months with no charges for prepayment or loan foreclosure.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!


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