| It has been observed that most of the
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| | equated monthly Installments (EMI)
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| non-resident Indians (NRI) and persons of
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| | through Non - Resident Ordinary (NRO)
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| Indian origin (PIO) want to buy a house
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| | account or the Non Resident External
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| in India for themselves or for their
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| | (NRE) Account. For security, most banks
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| family. Generally, NRIs have a doubt in
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| | insist that the first mortgage of the
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| their mind as to whether they can invest
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| | property should be in their name. If the
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| in a residential house property in India
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| | property is under construction then
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| by remitting funds from overseas under
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| | adequate additional security is required
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| the current foreign exchange regulations
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| | such as guarantee of third party (either
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| or not. Let us look at some of the
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| | resident or non-resident).
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| aspects related to this matter.
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| | The Government of India in 1991 embarked
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| An NRI refers to an Indian citizen who is
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| | on liberalization and economic reforms
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| residing outside India.
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| | with a view to bring about rapid and
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| They can acquire any immovable property
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| | substantial economic growth and move
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| in India other than agricultural land,
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| | towards globalization of the economy. As
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| plantation and farmhouse. These days a
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| | a part of the reforms process, the
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| number of options are available to buy
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| | Government under its New Industrial
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| houses of international standard with all
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| | Policy revamped its foreign investment
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| the facilities such as clubhouse and
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| | policy recognizing the growing importance
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| gymnasium. An NRI may use his own funds
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| | of foreign direct investment as an
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| to acquire immovable property. He can
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| | instrument of technology transfer,
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| also avail of a home loan for this
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| | augmentation of foreign exchange reserves
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| purpose.
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| | and globalization of the Indian economy.
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| Interest rates for NRI home loans do not
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| | Simultaneously, the Government, for the
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| vary much from that of the Indians living
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| | first time, permitted portfolio
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| in this country. But the loans are
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| | investments from abroad by foreign
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| sanctioned only for a shorter period. An
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| | institutional investors in the Indian
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| NRI gets only 85% of cost of home as loan
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| | capital market.
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| amount. The size of the loan depends upon
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| | Basically, foreign direct investment
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| the borrower's repayment capacity. Up to
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| | relates to direct investment in an Indian
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| 36 times of the gross monthly earnings of
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| | company either through a joint venture
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| the applicant may be issued as loan.
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| | agreement or as a wholly owned subsidiary
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| However, there is a maximum limit.
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| | with management interest. Foreign direct
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| Calculation of eligibility for NRI home
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| | investment is also permitted through the
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| loans is same as that of Indians living
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| | route of Global Depository Receipt/Euro
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| in the country.
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| | issue/FCCB.
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| The re-payment has to be made through
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