Hi,

I purchased a house while in India, took loan from IDBI for part of the total amount. I shifted to US 1 yr back and now want to repay the loan amount.

Q: Which account I should use to repay the loan?
1) HDFC NRO
2) NRE or
3) Pay through Relatives account by transferring amount to them.

Q: Will there be any tax applied towards any transfer I do to make the payment?

Q: Will there be any issues in future if I resell the house paid thru NRO/NRE?

Thanks & Regards,
BM
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  • Originally Posted by bsoman
    Hi,

    I purchased a house while in India, took loan from IDBI for part of the total amount. I shifted to US 1 yr back and now want to repay the loan amount.

    Q: Which account I should use to repay the loan?
    1) HDFC NRO
    2) NRE or
    3) Pay through Relatives account by transferring amount to them.

    Q: Will there be any tax applied towards any transfer I do to make the payment?

    Q: Will there be any issues in future if I resell the house paid thru NRO/NRE?

    Thanks & Regards,
    BM


    Hey harivishnu; Could you please help bsoman; on the above queries? Your inputs here will be really appreciated. thank you. :)
    CommentQuote
  • Hi,

    This should be answered by any auditor, however even bank executive(Home loan guy) can guide you on this matter.
    CommentQuote
  • Point-wise reply:

    Originally Posted by bsoman
    Hi,

    I purchased a house while in India, took loan from IDBI for part of the total amount. I shifted to US 1 yr back and now want to repay the loan amount.

    Q: Which account I should use to repay the loan?
    1) HDFC NRO -

    If your loan was from normal Indian account before moving to US you CAN continue to repay with that account but AFAIK it's not a legal way and not advisable.


    2) NRE or

    Via NRE account is the legal way to repay the loan and I did the same bcoz my initial loan was from NRE Account.


    3) Pay through Relatives account by transferring amount to them.

    Not advisable in any case and I don't think they can pay for your loan by cheques n their name.


    Q: Will there be any tax applied towards any transfer I do to make the payment?


    No ; if your transaction is for NRE account


    Q: Will there be any issues in future if I resell the house paid thru NRO/NRE?

    NRE money is repatriable to US but dont't know abt NRO. As per law short/long term capital gain tax is always there in all cases ; whether you sell via Indian account or NRE account.


    Thanks & Regards,
    BM
    CommentQuote
  • I have a nre account with axis bank but am planning to get housing loan from hdfc. so is there anything like we need to have nre account with the same bank to get home loan.
    CommentQuote