Reserve Bank of India

What is the Best way to finance a house in India for an NRI?

I am an NRI (in USA) and am planning on buying a house in India. I see that the current interest rates for loans in India are around 12% and think they are a lot more than the loans here in US. I don't have a house here in the US. Can I take a loan here in the US and pay for my house in India? If possible, what would the best way be? Secondly, can I claim any tax benefits for the money I would be paying towards principal, interest for the house in India while staying in USA?

Public Comments

1. No you can't because the U.S. banks are not licensed to do business in India. Let me make sure I explain this a little. As allot of international banks, that are also in the US are, they will go by the interest rates in India, and the loan will be from a subsidiary bank in India. Also banks in the US can't foreclose on property in another country. Don't miss understand me I know there are banks in LA that you can walk into and get a loan for a home in another country, if they do business in that country and at the rate that country will allow them to charge. And on the taxes you won't be able to claim it because the property is not in the US, and was not paid to a US bank. I have clients with property in Mexico and I do hold an international real estate license.