How are housing loans taken out and to be repaid by NRIs / PIOs?
Ans: Authorised banks are permitted to provide housing loans to NRIs / PIOs for acquiring residential accommodation in India, subject however, to certain conditions. The quantum of loans, margin money and the period of repayment is at par with the housing loans provided to residents in India; the loan amount cannot be credited to the NRE / FCNR account; it has to be fully secured by equitable mortgage of the property proposed to be acquired, and if necessary, also by lien on the NRIs / PIOs other assets in India; the instalment of loan and interest and other charges has to be paid by the NRI / PIO by remittances from outside India through normal banking channels, or out of funds in the NRE/FCNR/NRO account in India. In the last case, the loan and interest can also be repaid out of the rental income of such property.
