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After all, managing a property from abroad is no cakewalk!If an NRI chooses to go ahead with his/her decision of investing in a property in India, the next step to consider is knowing some basic rules around investing in Indian property.
While there is no restriction on the number of properties an NRI can own in India, he/she cannot purchase agricultural lands, farmhouses or plantations.
The regulatory framework and instructions, however, are issued by the RBI (Reserve Bank of India).(5)3.
In case of purchase, payments can be made only out of funds received in India through normal Indian banking channels by way of inward remittances from any place outside India OR out of funds held in any Non-Resident External (NRE) account/Foreign Currency Non-Resident (FCNR) account/Non Resident Ordinary (NRO) account maintained in India.
However, the documentation process for availing these loans is different.
For example, Axis Bank demands the following documents from NRI investor looking for a home loan to purchase Indian property: (3)Full passport copy and work visa copyOverseas address proof e.g.