NRIs can avail loan against their NRO, NRE and FCNR(B) Term Deposits for personal purposes or for carrying out their business activities, for making direct investment in India or acquisition of flat/houses in India for their own residential use. Loans are also available to resident individuals/firms/companies against the Term Deposits held by Non-Residents for any type of fund based and/or non-fund based activities subject to compliance of certain guidelines issued by Reserve Bank of India. Non Resident Indians may also avail loans outside India against their NRE/FCNR(B) deposits held with us for themselves or third parties for bonafide purposes through our correspondent banks abroad.
Note : Loans to Non Residents/ Third Party, against security of Non Resident (External) Rupee Accounts (NR(E)RA)/ Foreign Currency Non Resident FCNR(B) deposits
Reserve Bank of India vide its circular A.P (DIR Series) Circular No. 44 dated October 12, 2012 has amended the guidelines relating to Loans to Residents/ Non Residents (self/ third parties) against security of Non Resident (External) Rupee Accounts/ Foreign Currency Non Resident (Bank) Accounts Deposit Rupee loans to be allowed to depositor/third party without any ceiling subject to usual margin requirements.
NRIs may avail housing loan for purchase of any number of residential/ commercial properties. NRIs / persons of Indian origin having citizenship of Bangladesh, Pakistan, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan require prior permission from Reserve Bank of India for acquiring immovable property/ies in India. The loan amount can be used for NRIs' personal/business requirements in India only. Repayment of the loan is to be made either out of fresh remittances from abroad or by debit to NRO/NRE/FCNR(B) account/NRI or out of the sale proceeds of the immovable property/ies.
NRIs may avail any type of fund based/non fund based facility against the security of shares/convertible debentures for their personal requirement or for business purposes.4.d) Housing Loan in Rupees
NRIs can also avail rupee loan in India for purchasing a residential property in India from a bank or a house financing institution. 4.e) Rupee loan to NRIs/PIO employees.
NRI/PIO employees of a body corporate registered/incorporated in India may also avail rupee loan for their personal purposes including the purchase of residential property in India provided such loans are repaid by fresh remittance from outside India or by debiting NRO/NRE/FCNR(B) account of the borrower.