Banking · NRI Housing Loans & FEMA Guidelines
An NRI applicant and his resident Indian spouse apply for a joint home loan to purchase residential property in India. According to FEMA and banking practices, which statement describes the standard procedure?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1NRIs can only borrow in USD foreign currency for property purchases in India.
- 2Since the co-applicant is a resident Indian, foreign income documentation and FEMA norms are ignored.
- 3The loan is permissible under FEMA; the bank requires a General Power of Attorney (GPA) from the NRI, and EMI must be serviced via NRE/NRO/FCNR accounts.✓
- 4The loan cannot be granted because NRIs are prohibited from purchasing residential properties in India.
Correct answer
The loan is permissible under FEMA; the bank requires a General Power of Attorney (GPA) from the NRI, and EMI must be serviced via NRE/NRO/FCNR accounts.
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