Being an NRI (Non-Resident Indian) comes with its own set of challenges, especially when it comes to managing affairs back home. Whether it's securing an education loan for your child or taking care of real estate investments, navigating legal hurdles can be daunting. That's where the power of attorney (POA) comes in – a life-saving tool that lets you entrust someone you trust to handle things on your behalf.

Why Do NRIs Need POAs?

• Physical Distance: As an NRI, being physically present for tasks like signing loan documents or managing property becomes difficult. A POA empowers a representative to handle these matters in your absence.

• Efficiency and Speed: Dealing with bureaucracy can be time-consuming. A POA streamlines processes by authorizing your representative to act on your behalf, saving you precious time and travel expenses.

• Peace of Mind: Knowing someone reliable is looking after your interests in India offers incredible peace of mind, especially when you're miles away.

Types of POAs for NRIs:

• General POA: This grants broad authority to manage your overall affairs, including bank accounts, investments, and property matters.

• Specific POA: This provides limited authority for specific tasks, like signing loan documents for your child's education or managing rentals from your property.

Creating a POA If you are physically present in India and plan to leave soon:

• Choose your attorney: Select a trusted individual, ideally a family member or legal professional, who understands your needs and has the necessary expertise.

• Documents Required

  • The office of the registrar would need 2 witnesses to sign the POA in front of the registrar (Physical presence is required). Tip: Arrange for any 2 friends or relatives to visit the registrar’s office with you. There are always some people available outside the registrar’s office to help, with money.

  • Carry self-attested documentary proof like address proof, voter ID card, passport, and Aadhar card in original along with their photocopies.

• Draft the POA: Consult a lawyer to draft a well-defined POA on a stamp paper of Rs. 100 that clearly outlines the scope of authority granted, specific tasks, and validity period.

• Registration: Visit the office of the Registrar (commonly known as the office of the sub-registrar) for your residential location. Each region within your city may have different offices. Example: Residents of Malviya Nagar, South Delhi would have a regional Registrar office located at Mehrauli, Near Qutab Minar. Consult a lawyer to understand the registration requirements.

• Photo Click: The registrar will click and store pictures of you, the POA holder, and the witnesses in the government records.

  The registrar will keep a copy of the POA in government records and provide one to you with his office registry stamp. At this time, your simple POA becomes ‘Registered Power Of Attorney‘.

Creating a POA If You are physically NOT present in India – NRI holding Indian passport:

• Choose your attorney: Select a trusted individual, ideally a family member or legal professional, who understands your needs and has the necessary expertise.

• Draft the POA: Consult a lawyer to draft a well-defined POA that clearly outlines the scope of authority granted, specific tasks, and validity period. You do not need Indian Stamp Paper since you ate not in India.

• Attestation: The POA needs to be attested by the Indian Embassy or Consulate in your country of residence.

• Sending the POA: Send the original POA to your chosen attorney in India via a secure courier service.

• The PoA holder in India needs to get this POA registered to make it a valid document and term it as a Registered power of attorney.

  Visit the SDM (Sub-divisional magistrate) office in the POA holder’s residence district in India (the person who you name in the POA) and NOT your address.

  NOTE: The SDM (Sub-divisional magistrate) office and the office of the registrar are two separate government departments/offices.

Processing time is 15 business days. Once this POA is stamped by SDM, it is considered a registered power of Attorney. No witness is required in the SDM office for registration.

Registered POA is acceptable in any government office for possession and registration of property.

Education Loan POA:

You can create power of attorney for taking an education loan from any national or private bank in India.

For example, You can create tried and tested power of attorney for banks like SBI, Punjab National Bank, or a private bank like ICICI, HDFC, etc to help your relative sign loan papers for you in India. The education loan POA does not usually need registration in India. Only the notary in a foreign country or the Indian Embassy attestation is enough.

If your bank is asking you to specifically get the POA registered in India, then you can get it registered in the sub-registrar office.

The POA should also give rights to the POA holder to sign, a mortgage (any security to cover the loan) and you should explicitly mention that you will be liable for all actions taken by the POA holder.

Real Estate/ Flat/ Land Buying Power of Attorney:

An NRI (non-resident Indian) can use the special power of attorney to buy, sell, or take possession of a real estate property in India.

The same POA can be used for managing home loans in India by a member of the family. Your POA holder can make payments for home loans like SBI, HDFC, ICICI, and other banks.

Note that you will need to get the POA attested by the Indian embassy before registering it in India.

Documents Required for Registration of POA:

If you are an NRI, you should check the process to have the attested power of attorney from the Indian Embassy.

1. Affidavit (on stamp paper of Rs. 100) for PoA holder’s swearing for his/her identity.

2. The Envelope which was used to send the POA from the US to India is also required. Sounds strange but it is asked by the officer in the SDM office.

3. Passport photocopies of the Executants (Person/s who have created the POA) in the Power Of Attorney. For example, both husband and wife are executants of the POA.

4. 2 (number) Address and ID proof of the POA holder. One could be a passport and another can be an electricity bill, water bill, etc.

5. A document that can prove the relationship between the POA holder and POA executants. For example a daughter will have the name of her mother listed in her passport and thus proving that she is her mother.

6. You will have to submit the original POA along with the documentary proof to the SDM office.

Additional Tips:

• Communicate Clearly: Maintain open communication with your lawyer, keeping them updated on any changes in your needs or instructions.

• Review and Update: Regularly review your POA and update it if necessary, especially when the scope of tasks or your attorney changes.

• Seek Professional Help: Navigating legal matters can be complex. Don't hesitate to seek professional legal guidance from a qualified lawyer.

Living as an NRI doesn't have to be a logistical nightmare. By understanding and utilizing the power of attorney effectively, you can seamlessly manage your affairs back home and focus on achieving your goals, wherever you are in the world. Remember, a well-drafted and executed POA empowers you to be present in two places at once, ensuring your interests are protected and your dreams stay on track. Amrita Jaiswal & Associates help you navigate all requirements NRIs.

NRI Power of Attorney for Loan and Real Estate