Hi. To answer, are gift funds allowed on an investment property purchase, the answer is both a yes and a no. This is because the allowance of gift funds depends on the situation. Gift funds are allowed when sent to NRIs and resident Indians when no loan is borrowed for the purchase. However, when a loan is to be borrowed for the property purchase, gift funds aren’t allowed. I will tell you why.
Gift Funds and Investment Property Purchase
Yes, so continuing from above, if you're taking a loan for the purchase of the investment property, banks or the financial institution you’re borrowing from won’t allow gift funds. This is because the lender needs to see your income and repayment potential. Gift funds come in as an aid and that puts the borrower’s capability of repaying the loan in a doubtful state.
Rules for Gift Funds for NRI
Here are some rules for NRIs regarding gifts they can receive from a resident Indian and those from another NRI/PIO/OCI:
Gifts from resident Indians: Other properties (including residential and commercial) are permitted. Agricultural land/farmhouse/ plantation property is not permitted.
Gifts from another NRI/PIO/OCI: Gifting of residential and commercial property is permitted for relatives only. Agricultural land/farmhouse/plantation property is not permitted.
This is all. I hope this will help you.
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Are Gift Funds Allowed on an Investment Property Purchase?
brijesh60
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5 months
2025-07-14T17:06:04+00:00 2025-07-14T17:06:06+00:00Comment
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