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Every Indian, no matter where he is located in the world dreams of having a home back in India. This leads to a high number of Non-Resident Indians (NRIs) investing in residential projects in Pune ,due to the high appreciation rate in this growing city. Plus, with the rupee falling, more investors are now considering real estate investments a lucrative option in Indian markets. The RBI’s regulations for buying property in India are also fairly easy, attracting many new NRIs to buy residential projects in Pune. If you’re an NRI thinking about real estate investment in India, we bring you some simple guidelines that will ease your process and help you make the right choice.

What Type of Property Can A NRI Buy in India?

The RBI allows NRIs to buy residential and commercial properties in India. They cannot buy an agricultural land, a farm house or a plantation land, nor can they receive such a land as a gift. They can hold an immovable property in India that they have acquired as an inheritance. It is important that NRIs ensure that when looking for residential plots in Pune, they are N.A. (non-agricultural) sanctioned plots.

Acquiring The Necessary Funds

If you are eligible and the property is clean, you will find many lenders willing to offer you property loans. It is wise to get the papers checked from a lawyer and get a bank’s clearance on the property so that you can be sure of a profitable purchase. If you’re investing in a new construction, make sure that the land title is clear and the builder has all the permits from authorities for construction. For your loan eligibility, your education and profession will play an important role. Only graduate NRIs are eligible for a home loan in India. As per the RBI rules, only 80% of the total property value can be funded by a financial institution. The rest must be paid from the NRIs personal resources. It is vital to note that Indian banks will offer loans in Rupees only and it must be paid back in the same currency. If you are working overseas and plan to stay there for long-term, you can consider getting an overseas loan if the interest rates are lower.

What Type of Property Can A NRI Buy in India?

The RBI allows NRIs to buy residential and commercial properties in India. They cannot buy an agricultural land, a farm house or a plantation land, nor can they receive such a land as a gift. They can hold an immovable property in India that they have acquired as an inheritance. It is important that NRIs ensure that when looking for residential plots in Pune, they are N.A. (non-agricultural) sanctioned plots.