Posts Tagged ‘banking’

Real estate for the eager NRI

April 12, 2013

When it comes to investments and returns NRI’s across the board are ever eager for such opportunities. Making the government even more eager to please and attract such investors from abroad. Real estate is constantly drawing the NRI attention and with a stabilized market looking good, these investors are most ready to buy.

The Reserve Bank of India has permitted those NRI’s with Indian passports and people of Indian Origin, to freely put their money in real estate (residential & commercial) and has increased the number of such investors on account of a depreciating rupee value and the offer of better returns. For reasons sentimental and for a sense of security, a homeland investment makes quite the number of NRI’s happy.

On an interesting note, the RBI along with Foreign Exchange Management Act (FEMA) has made rules and regulations lenient for NRIs, by not only simplifying investments policies, but also providing repatriation of capital involved. While an investment promotional council by the government is further creating a more investment-friendly environment appropriate for NRIs.

How NRI’s can invest in Real Estate?

According to the regulations of FEMA and RBI, an NRI is permitted to make specific investment in real estate and is allowed to do the following investment in property:

1] Any immovable property can be purchased by NRI in India other than any agricultural land, farm house and plantation property.

2] Get any immovable property as mentioned above by gift from an Indian resident, Indian citizen residing outside India or person of Indian Origin.

3] Obtain any property by inheritance.

4] Transfer immovable property to any resident of India by sale.

5] Transfer any agricultural land, farm house or plantation land to any resident of India by gift.

6] Transfer residential or commercial property by means of gift to any person either residing in India or abroad or person of Indian origin.

Sources of Finance
Financial institutions consider the NRI Diaspora, one of the most sought after clientele and aim at offering, such a potential group with valued added terms and services. Keeping in mind that NRIs tend to be prompt at the time of repayment. Not to mention, that inward remittance and return on investments via, rent/dividends are a big bulk of business offered by NRIs.

The RBI has also predetermined norms in home loan for NRIs buying any property:

1] A maximum of 80% amount is financed by the financial institution. Rest should be paid by an NRI.

2] The remittance of the amount for down payment can be done from the place of residence by normal banking channels, i.e., NRO/NRE account in India.

3] Furthermore, an NRI has to repay his principal amount as well as interest part from that similar channel only.



To know more about NRI Money Transfer and other Online Remittance To India services to make your investments choices  you can also visit our website

Financial Year 2011 For NRIs

January 4, 2012

  Almost any NRI has an inextricable link with his or her family, friends and associates back home in India. This bond works on several levels. At the most basic and essential level, it is a strong albeit intangible bond that an Indian overseas shares with the home land. Of memories of childhood, a cultural ethos and context. And then of course, on a regular basis, us NRIs are always connected with India, because of our families and various other reasons.

  While the emotional bonds with India are often talked about, there also exists a very real financial relationship with our home country, that is often not spoken of, as much. Whoever I know, including myself, has a dedicated and ongoing financial relationship with India. This may be for a number of reasons. Taxation, investments, and most importantly, money transfers. And the rupee rate has a direct and big impact on the quality of these sub-relationships, all the time.

  In 2011, by and large, things were good for the NRI financially in terms of India. While the rupee rate fell quite regularly, and this meant an unpleasant situation for the indigenous economic situation with India; for us as NRIs, it simply increased our buying power. So be it wanting to invest in say property, or just sending money home to our families and our loved ones – our pounds, euros and dollars, fetched us a lot more than it did earlier, when the rupee was a bit stronger. Especially towards the end of the year, with the rupee sliding from as high as 45 rupees to the US Dollar to a low of 52 rupees to the dollar; the NRI buying power was immensely boosted. To put it plainly, we got a lot more value for our foreign exchange in India, than before.

   Coupled with the fact that the rest of the world was seeing rather uncertain financial times, at least in a relative sense India made for a much safer option to invest and park our money. I personally invested in two real estate projects and had the continued satisfaction of seeing my money return a lot more rupees, once I had transferred it to my parents in Delhi. So all in all, 2011 proved to be rather fruitful financially with relation to India. A good year, with good results.

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