|Every bank and housing finance companies follow the RBI guidelines to define NRI. It states, "An Indian citizen who holds a valid documents like Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI." The RBI Directive for Home Loans is different for Non-Resident Indians, NRIs. According to Reserve Bank of India (RBI), Non-Resident Indians, NRIs, purchasing immovable property in India should pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country. According to RBI Directive for Home Loans, NRIs can also acquire immovable property in India other than agricultural property, plantation or a farmhouse.
RBI has issued certain RBI Directive for Home Loans for Non-Resident Indians. The guidelines provided are :-
The home loan amount should not exceed 85% of the cost of the dwelling unit, as the remaining amount that is 15% needs to be provided an own contribution towards the cost of unit financed.
The cost of dwelling unit which is own contribution financed less the loan amount, can be met from direct remittances from abroad through normal banking channels, the Non-Resident External Account or Non-Resident Ordinary account in India.
However, repayment of the loan, comprising of the principal and interest including all the charges are to be remitted to the Housing Finance Company from abroad through normal banking channels, the Non-Resident External Account or Non-Resident Ordinary account in India.
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