Can we transfer money from US directly to the home loan account? Do we have any tax implications in US or in India? I don't have an NRE/NRO account and want to transfer directly to Home loan account. Please explain.

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    Are you a citizen of India with NRI status? Or are you a US citizen? If not, are you a US tax resident (this has nothing to do with your visa status; you might have a nonimmigrant visa but still be classified as a resident for tax purposes). If you are a US tax resident, have you been declaring all your income in India to the IRS as required and filing FATCA reports with the US Treasury each year reporting foreign assets? Is your home loan account a bank account from which you make EMI payments every month? Jul 12, 2019 at 2:50
  • I am NRI and not the US citizen. I have a savin account from which my EMI payment goes to Loan account. But I can pay directly to loan account my prepayment. So was asking can I do that and is there any tax implication. I have not declared FATCa..yet
    – Sandeep
    Jul 13, 2019 at 13:30

1 Answer 1


As per FEMA (Foreign Exchange Management Act) regulations, NRI can't hold savings account in India. Please get this converted to NRO. Can be done remotely.

Most banks don't allow direct deposit into loan account. Check with your bank if they allow.

There is no fax implications in India.

You need to declare this in your US tax returns.

It is advisable to repay the loan account via NRE account as repatriation of funds on sale is easier

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