Have NRI loan, what to do if R2I?d ?

chanti · Post by **chanti** » Wed Mar 05, 2008 11:21 pm

Let?s say I have NRI home loan of 50L and now I want to R2I, so question is after I R2I, I cannot (and will not be able) pay EMI in foreign exchange converted rupee any more(per RBI NRI loan need to be paid by foreign exchange rupee). I can pay only with rupee?s I earn in India. My questions are:

1) Has any one in this forum had been in similar situation, if so what are options?

2) I have called some banks, and they (reps) informed, I can convert my loan to resident loan, but I am not resident any more (I am OCI). Moreover (I think) they are doing lip service just to answer my question (this is just my opinion, I am not blaming anyone/reps)

If any one has any information, please kindly advise.

manuchabria · Post by **manuchabria** » Thu Mar 06, 2008 12:09 am

Wow !!! Wonder if you can declare bankruptcy in India before you r2i and give away your house to the bank

Never heared of this kind of case before.

R2I4Bliss · Post by **R2I4Bliss** » Thu Mar 06, 2008 12:10 am

This is from a HDFC branch manager.....

you need to show proof of employment in india to pay your loan from a local account.

if you are planning to setup a business then proof of business is required.

not sure whats the process if you retire :) ... i guess no one will retire with a loan on their back :)

laks0 · Post by **laks0** » Thu Mar 06, 2008 12:16 am

chanti;86542
2) I have called some banks, and they (reps) informed, I can convert my loan to resident loan, but I am not resident any more (I am OCI). [/quote]

Just want to comment on above statement. You CAN be a resident being OCI, Resident status is independent of Citizenship. Talk to the bank manager from where you got the loan.

hs123 · Post by **hs123** » Thu Mar 06, 2008 1:49 am

As laks0 said, you can be a resident of India regardless of citizenship.
Anyway, I believe you can use your NRO account to fund the loan, if you don't want to disclose residence status to the bank. (coz NR stands for Non Resident, so am not sure if you technically might need to close those accts).

http://in.loans.yahoo.com/060904/93/6796l.html
" The NRI also has to route his EMI (Equated Monthly Instalments) cheques through his NRE/NRO account."

chanti · Post by **chanti** » Sun Mar 09, 2008 1:08 am

Thank you all for your prompt response, it helped a lot. Once again Thank you.