How the two account types differ for a property purchase, and why it matters at resale.
Holds foreign earnings converted to INR. Fully repatriable — principal and interest can be sent back abroad without RBI approval, subject to standard reporting.
Funding a purchase from an NRE account keeps the entire investment easily repatriable later, which matters if you plan to sell and move the proceeds back out of India.
Holds India-sourced income — rent, dividends, or sale proceeds of other Indian assets. Repatriation is capped (currently USD 1 million per financial year) and requires the CA certification process (Form 15CA/15CB — see our repatriation guide).
If your down payment comes from NRO funds, factor the repatriation cap and paperwork into your exit plan from day one, not at resale time.
Payments for a property purchase can come from an NRE account, an NRO account, or an inward remittance directly from abroad through normal banking channels — never in cash, and never via a foreign currency account. Keep your funding source documented; it directly affects how easily you can repatriate proceeds later.
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