NRI's holding Indian passport do not require prior permission of RBI to buy residential or commercial immovable property in India.

Further, there is no limit on the number of residential or commercial properties that an NRI can purchase in India.

Payment for the purchase of property can be made either by way of funds remitted to India from abroad through regular banking channels or through the balance in the NRE, NRO or FCNR Account.

Under the general permission to NRI's holding foreign passport, the RBI has allowed them to acquire, hold, transfer or dispose off by way of sale or inheritance, immovable properties situated in India.

It is necessary for foreign citizens of Indian origin to declare such property to RBI within a period of 90 days from the date of purchase in the prescribed IPI 7 to RBI.

The RBI has granted general permission for sale of such property without its permission. However, where the property is purchased by another foreign citizen of Indian origin, the funds towards the purchase should either be remitted to India or paid out of the balance in a NRE or FCNR account.

The remittance of the sale proceeds depends on the mode of acquisition -whether it was acquired out of funds remitted from outside or out of rupee funds

On residential properties purchased, the RBI considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of 2 properties.

Applications for the repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final installment of consideration amount, whichever is later.

If you are buying the property through your NRE accounts, then you could repatriate your sale proceeds and rental income to your foreign account after deduction of Income Tax and Capital Gains on the Sale proceeds as applicable.

NRIs can rent out the property without the approval of the Reserve Bank. The rent received can be credited to NRO / NRE account or remitted abroad.

The RBI allows NRIs to take home loans for buying property in India

If you are settled outside India and come once if a couple of years, then for all practical purposes, you should give a specific power of attorney to some one here in India, so that in your absence, things like registration, possession, execution of agreement for sale, agreement of leave and license etc, can be taken care of with ease.

A. Loan application form duly filled and signed. Two photographs of both the applicant and the co-applicant with signature on front and back.

B. Copy of passport. (Along with latest visa stamp and date of entry stamp), Proof of residence in India. (Electricity / Telephone bill / Ration card / Society maintenance bill / LIC Policy / Mobile bill / Utility bill like Gas Supply bill), Proof of residence in Abroad (Electricity / Telephone Bill / Mobile Bill / Utility Bill e.g. Gas Supply bill / Driving License), Copy of Identity card / Social Security card / Work permit (Hikama) Copy of credit card. Last six months bank statements of all the NRE / NRO account in India.

C. Last six months bank statements of bank account held abroad where salary is credited Copy of Contract / Employment Certificate Copy of Annual Salary Certificate specifying the mode of payment (If payment is fully or partly received in cash) Salary Slips for the immediately past 06 months.

D. Copies of Sanction Letter of Loans availed in India and abroad Self Declaration of Residential Status Initial Processing fees cheque of Rs 5612/-, this is charged by the Bank, we can do away with this for the time being and once you want to have the application approved you please send this to us.

E. Please note that all the above documents need to be certified by the Indian Embassy abroad. Documents relating to income / salary needs to be attested as true by your employer.

F. All documents in foreign language need to be translated in English.