People choose to move to a new country for many reasons like education, better economic opportunities, or to start a new life. Moving to another country has its fair share of challenges when you are adjusting to entirely new living conditions. Mainly, unforeseen financial expenses. And it can be extremely difficult to get financial aid to meet your urgent financial needs when you have just moved there or are staying only on a temporary basis.
Fortunately, for a non-resident Indian (NRI), there are various types of loans that are offered by major banks in India to meet your financial expenses or for other purposes. Popular loans available for NRIs include:
You can take personal loans to take care of your emergency financial needs including any large purchases, consolidating debt, medical emergencies, travel, education, even home renovation. Most banks in India provide secured NRI loans, meaning you need to provide a collateral or security such as home, high valued asset, even bank fixed deposits. In case of unsecured personal loans where you need not give any collateral, it will be based on your income details and/or creditworthiness among other factors. The process of getting these loans is not complicated although the criteria vary from bank to bank.
Common eligibility criteria for personal loans in India
Documents requirement for personal loans
Banks go through several documentation processes to verify the background details of the applicant. NRIs are required to provide the following documents to avail of the loan.
In addition, you will need to provide the identity and address proof of your co-applicant.
How to apply for a Personal loan?
It is possible to apply online for personal loans if you are not able to visit the bank in person. But it is better to check with the bank of your choice about the availability of the loans and the online application. They can guide you through the process. It may be easier for NRIs who are already customers of the Indian banks.
It helps if you have a relative in India so that they can go to any bank branch and enquire about the loans. Most banks have NRI help desks, or you can do it via email or phone.
Additional points to consider when applying for NRI personal loans:
NRI has the option of opening saving accounts or recurring deposits or fixed deposits in Indian banks. Read more on what bank accounts an NRI can open in India.
Top Indian banks offering personal loans to NRIs
With so many options available, it’s best to compare and go for the one that is suitable for you. Look for a good rate and a good repayment facility while choosing one.
You can take NRI home loans for purchasing a flat or plot, or home construction and renovation. The lowest interest rates start from 6.85%. Several banks in India like Axis, SBI, HDFC, Kotak, Citibank, Federal Bank, ICICI, etc provide various home loans to Non-resident Indians (NRIs) and Persons of Indian Origin (PIO).
Eligibility (may vary from bank to bank)
Basic document requirements
Income and other documents
For salaried applicants
For self-employed applicants
Documents for Balance Transfer/Loan Takeover
You can use the online home loan calculator on the bank’s website to check your loan EMIs by entering the loan amount, tenure, and interest rates.
As an NRI, you can apply for car loans in India whether you are a salaried employee or a self-employed professional in a foreign country. Major banks like SBI, Federal Bank, Bank of Baroda, etc, offer car loans to NRI.
Documentation required for a car loan in India
Documents for Guarantor (resident Indian)
The car loan interest rates by the banks are applicable both to resident Indians and NRIs. For example, the SBI car loan interest of 10.45% is the same for both NRIs and Indian residents.
There are many other loans such as property loans, education loans that banks in India offer to NRIs. Always check with the banks and financial institutions for the availability of loans that you are interested in.
You can repay your loan through remittance sent through normal banking channels, or your NRE accounts or from your income earned from an investment like real estate in India. Your relatives can also repay the loans on your behalf.
If you are looking for money transfer services to send money online to India, CompareRemit is a platform to compare top money transfer companies and let you choose the one with the best exchange rate and fees when sending money internationally.
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