1. Does RBI have any guidelines for loans to NRI's/PIO's?
Yes. There are guidelines issued by the by the Reserve Bank of India for grant of Housing Loans to NRIs. The guidelines are:

a. The loan amount shall not exceed 85% of the cost of the dwelling unit.
b. Own contribution, which is the cost of dwelling unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.
c. Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India

2. Can authorised dealer grant loans to NRIs for acquisition of a flat/house for residential purposes?
Authorised dealers have been granted permission to grant loans to NRI's for acquisition of house/flat for self-occupation on their return to India subject to certain conditions Repayment of the loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investors' NRE/FCNR/NRO accounts.

3. Can authorized dealer grant housing loan to NRI's where he is a principal borrower with his resident close relative as a co-applicant / guarantor or where the land is owned jointly by such NRI borrower with his resident close relative?
Yes. Such housing loans availed in rupees can also be repaid by the close relatives in India of the borrower.

4. What are the documents I have to submit along with the application?
The following documents are normally to be submitted along with the application:

a. Photocopy of the labour contract and English translation duly countersigned by your employer
b. Latest salary certificate (in English) specifying the following:
Name (as it appears in the passport)
Date of joining
Passport Number
Designation
Perquisites and salary
c. Photocopy of labour card/identity card
d. Photocopy of valid resident visa stamped on the passport
e. Photocopy of monthly statement of local bank account for the last 4 months
f. Property related documents

5. Can an NRI take loan against the security of immovable property in India? Are there any restrictions on the use of loan amount?An NRI can borrow against the security of immovable property from Authorised Dealer subject to following conditions:

i) the loan should be used for meeting the personal requirements or for borrower's own business purposes; and
ii) loan should not be used for prohibited activities, namely;
(a) business of chit fund, or
(b) Nidhi Company, or
(c) agriculture or plantation activities or in real estate business, or construction of farm houses, or
(d) trading in Transferable Development Rights (TDRs),
iii) the loan amount cannot be remitted outside India,
iv) repayment of loan shall be made from out of remittances from abroad or by debit to NRE/FCNR/NRO account or out of the sale proceeds of shares or securities or immovable property against which such loan was granted.