What kind of regulations govern the financing of properties that NRIs want to buy in India? What are the different kind of home financing options available?
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  • @kapilsemailinbox Well, there are several regulations governing the financing of a property that an NRI intends to buy in India. Apart from the regulations that govern the type of properties that NRIs can buy, there are legal provisions dictating the finance options.
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  • Thanks! What are the sources that NRIs can use to get a property financed?
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  • NRIs can buy a property in India, by availing home loans in Indian rupees, from banks or housing finance companies. The loan should only be availed through banking channels and no other source.
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  • Can NRIs avail a home loan from sources else than banks?
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  • Well, there is another mode of financing that can be done through the Indian employer of the NRI employee. The employer can grant a home loan to his or her NRI employee.
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  • Thanks! In what manner can NRIs pay back their home loans?
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  • @kapilsemailinbox If you mean the channel of repayment, then like said before, the payment has to be done through banking channels only.
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  • Okay. Can NRIs buy a house through a traveller's cheque or foreign currency?
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  • @kapilsemailinbox No, traveller's cheque or foreign currency cannot be used for buying a house in India and all transactions should be in Indian currency and only through banking channels.
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  • Okay! How is the repayment of the loan? Through what channels can NRIs repay a home loan?
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  • @kapilsemailinbox As per the processing of the loan, an NRI can use the money in his/her credit, in non-resident external (NRE) rupee or non-resident ordinary (NRO) or foreign currency non-resident (FCNR) account, maintained in India.
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  • Nice topic here. Can an NRI buy any kind of property and avail a loan for it?
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  • As per law, an NRI can invest in a residential or commercial property and banks offer loans for buying or constructing one.
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