SMS / Whatsapp ‘Modispaces NRI’ to – 750 600 2900
Email: nrisales@modispaces.com

1. An Indian citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident.
2. Persons posted in U.N. organizations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary (or non-temporary) assignments are treated as non-residents.
3. Non-resident foreign citizens of Indian origin are treated on par with non- resident Indian citizens (NRIs).

A Person of Indian Origin (PIO) 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:

1. Held an Indian Passport at any time, or
2. Who or whose father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955

NRIs are granted the following facilities:

1. Maintenance of bank accounts in India
2. Investments in securities/shares of, and deposits with, Indian firms/companies
3. Investments in immovable properties in India

Under the general permission available, the following categories can freely purchase immovable property in India:

1. i) Non-resident Indian (NRI) – that is a citizen of India resident outside India
2. ii) Person of Indian Origin (PIO) – that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who

At any time, held Indian passport, or

Who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

The general permission, however, covers only purchase of residential and commercial property.

YES

Yes, the Reserve Bank has granted general permission to NRIs to acquire or dispose of NRI India Properties by way of gifts from or to a relative who may be an Indian citizen or a person of Indian origin (PIO) whether resident in India or not.

The Reserve Bank has granted some general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc, and authorized dealers to grant housing loans to NRI nationals for acquisition of an NRI house/flat for self-occupation subject to certain conditions. The criteria regarding the purpose of the loan, margin money and the quantum of loan will be at par with those applicable to resident Indians. Repayment of the loan should be made within a period not exceeding 15 years, out of inward remittance through banking channels or out of funds held in the investors’ NRE/FCNR/NRO accounts.

A Power Of Attorney (POA) or letter of attorney is a written authorization to represent or act on another’s behalf in private affairs, business, or some other legal matter, sometimes against the wishes of the other. The person authorizing the other to act is the principal, grantor, or donor (of the power).

A Power Of Attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property.

A Power Of Attorney, or letter of attorney, is a document that authorizes another person, known as the agent or attorney-in-fact—usually a legally competent relative or close friend over 18 years old—to handle any combination of financial, legal and health care decisions. A power of attorney is also referred to as a POA. Generally, one chooses a POA as a provision if he or she becomes incapacitated.

Types of Power of Attorney:

1. A Power Of Attorney (POA) is an instrument that is used by people to confer authority on somebody else to legally act on their behalf. POA are of two types.
2. Special Power of Attorney (SPA), while an SPA is used for transfer of a specific right to the person on whom it is conferred.
3. General Power of Attorney (GPA), the GPA authorizes the holder to do whatever is necessary.
4. There is no sale clause of immovable property mentioned in POA (notarized)
5. Registered POA from the registration office allows sale clause and POA to anyone
6. Following are the important things to be kept in mind while executing the POA

Customer Prepares POA as per defined format.

1. Executants have to paste his/her photograph along with signature on each page.
2. Authenticate/adjudicate the POA from Indian Embassy or local authority.
3. Send authenticated/adjudicated POA in India.
4. In India, the POA holder has to paste his/her photograph along with his/her left hand thumb impression and signature.
5. Then this document will have to be stamped for Rs. 500/- (ESBTR, Franking, Stamp paper) and notarized from a Registered Notary. Please ensure that a stamp of “Before Me” is affixed to the document.
6. POA holder and executants Photo ID attach before Notary.

The documentation required to be submitted by NRIs are different from Resident Indians as they are required to submit additional documents, like a copy of the passport and a copy of the works contract, etc. NRIs also have to follow certain eligibility criteria in order to get Home Loans in India.

Another vital document required while processing an NRI home loan is the power of attorney (POA). The POA is important because, since the borrower is not based in India, the Home Finance Company would need a ‘representative’ ‘in lieu of’ the NRI to deal with. Although not obligatory, the POA is usually drawn on the NRI’s parents/wife/children/ close relatives or friends.

The documents needed for obtaining NRI home loans are Bank specific. General list of documents is as mentioned below:

Passport and Visa

1. A copy of the appointment letter and contract from the company employing the applicant.
2. The labour card/identity card (translated in English and countersigned by the consulate) if the person is employed in the Middle East.
3. Salary certificate (in English) specifying name, date of joining, designation and salary details.
4. Bank Statements for the last six months
5. List of Classified documents for Salaried and Self Employed NRI Applicants. Banks may have specific requirements apart from the below listed documents.

Salaried NRI Applicants:

1. Copy of valid passport showing VISA stamps
2. Copy of valid visa / work permit / equivalent document supporting the NRI status of the proposed account holder
3. Overseas Bank A/C for the last 3 months showing salary credits
4. Latest contract copy evidencing Salary / Salary Certificate / Wage Slips

Self-employed NRI Applicants:

1. Passport copy with valid visa stamp
2. Brief profile of the applicant and business/ Trade license or equivalent document
3. 6 months overseas bank account statement and NRE/ NRO account
4. Computation of income, P&L account and B/Sheet for the last 3 years certified by the C.A. / CPA or any other relevant authority, as the case may be (or equivalent company accounts)