Tuesday, September 27, 2022

Can Nri Get Personal Loan In India

Don't Miss

Nri Personal Loan Overview

Can an NRI avail a personal loan from India?

A non-resident Indian is a citizen of India who holds an Indian passport and has temporarily immigrated to another country for six months or more for employment, residence, education or any other purpose. NRI can avail loan of two types of Loan ie called as NRI Home Loan and NRI Personal Loan

A personal loan is a very potent financial tool to tide over from short term cash crunch as it requires less documentation and the end use of funds is not restricted.

NRI Personal Loan are the most common source of finance which helps Indian citizens residing in foreign countries to avail personal loans in India. NRI Personal Loan are those in which one does not require give in any security or collateral, the lender relies on the borrower’s contractual obligation to repay the loan back. If an NRI has to travel urgently or if any personal emergency situation rises up, then a personal loan can be their aid and it can help them to tide over the contingency in the short period of time. Similarly, if one is looking to buy any consumer durable but is in short of cash, a personal loan can help to finance the purchase. All one got to do is choose the right lender and then apply for a loan amount as required

Benefits Of Icici Bank Nri Personal Loan

The following are some of the key benefits of ICICI personal loan for NRIs:

  • Multipurpose personal loan: You can get ICICI Bank NRI personal loan for various financial needs, such as dream wedding, home renovation, purchase of home or car, childs higher education, etc.
  • Collateral-free funding: ICICI personal loan for NRI is an unsecured loan, which means you dont have to submit any asset as collateral to get a loan from the bank.
  • Easy documentation: As the loan is collateral free, it involves minimal paperwork.
  • Quick processing and disbursal: The loan application process is short and simple. Eligible customers can get a loan in a matter of hours after application.
  • Higher loan amount: NRI customers can avail a personal loan up to Rs. 10 lakh from ICICI Bank.
  • Competitive interest rate: ICICI Bank charges low interest rates for an NRI personal loan in India, starting from as low as 15.49% p.a.
  • Longer tenure: An NRI personal loan from ICICI Bank can be availed for up to 36 months.

Can An Nri Borrow From An Indian Company

Yes, an NRI can borrow from an Indian Company subject to the following terms and conditions:

  • The loan can be granted only for personal use.
  • The loan can be granted for purchasing a housing property in India.
  • The loan shall be granted according to the Staff Housing Loan Scheme.
  • The lender shall credit the loan amount to the NRIs NRO account.
  • The repayment of loan can be done only by way of inward remittance from outside India.

Read Also: Fha Loan Refinance Calculator

Eligibility For Nri Personal In India

  • ICICI Bank offers a personal loan to salaried and self-employed applicants living abroad.
  • The salaried professionals must be employed in the same organization for at least one year and need to submit proof of income to the bank.
  • Self-employed professionals must have 3 years of business vintage. They need to provide proof of business continuity.
  • The principal applicant should be a resident Indian and the co-applicant NRI should be a close relative.
  • The minimum income criteria would depend on your monthly obligations/ liabilities.

Documents required for NRI personal loan

Here is the checklist of documents you need to submit to get a personal loan from ICICI Bank:

For NRI applicant:

  • Official email ID or HR email ID
  • Salary certificate/ salary slips for the latest 3 months
  • NRE/ NRO bank statements for the last 6 months

For resident Indian applicant

  • Identity proof: Voters ID card/ Aadhaar card/ PAN card/ passport/ driving licence
  • Address proof: Aadhaar card/ utility bill for the latest 3 months should have the same address as on loan application
  • PAN Number for credit score
  • Latest salary slips
  • Last 3 months bank statement

Note: NRI applicants should have a close relative in India and need to be present in India at the time of application.

Loan Basics: A Guide To Nri Home Loans

Can an NRI take a personal loan in India?

NRIs need to meet minimum age and work criteria to take a loan

One of the most sought-after investments for Non-Resident Indians is buying property back home. At a time when the Indian rupee is weakening against the US dollar, taking a home loan in India could be a good option for the NRIs rather than using up all the money earned in the foreign currency. Are NRIs allowed to take a home loan in India? Yes, they have. NRI Home Loans are offered both by banks and Non-Banking Financial Companies . Here we take a look at what is required to avail this loan and how it differs from a normal loan taken by a resident Indian.

Recommended Reading: Prosper Loan Approval Time

Things To Know For Nri Before Taking A Personal Loan In India:

Reputed name: There are a large number of lenders who provide attractive offers and it can be confusing to choose the best one out of them. You should remember to sift through the long list and pick the lender who has a good reputation.

Consider your needs: When you are applying for a personal loan, make sure that you know exactly what you need the money for. The usage of loan money needs to be carefully planned in advance. It is also important to consider the total amount that has to be paid back along with interest.

Never go for the maximum amount: It will be tempting if the lender offers you an attractive amount of money for a personal buy. However, you should always remember that it is best to choose the amount that you exactly need. It will make re-payment easier.

Always be clear: It is important to be clear about all the terms and conditions of the loan you are applying for. A solid plan is best if you are planning to apply for a personal loan.

Have a Plan B: Unexpected situations can arise at any moment and that is why it is crucial for you to always have a Plan B for re-payment of the loan.

Take one loan at a time: Many times, people make the mistake of taking multiple loans. This causes problems when the time for repayment is due, so always avoid taking more than one loan.

Related: Check out loan EMI calculators from top banks in India here.

For others- at least one guarantor having NW not less than thrice the loan amount.

Key Features Of Icici Bank Nri Personal Loan

As an NRI, you have the options to apply for other loans such as housing loans, car loans, etc. For all this, you need to have a good credit score. One of the easiest ways to get a good credit score is to repay the loan amount on time. Since ICICI Bank NRI Personal Loan is a short-term loan, it is a good way to create a good track record.

Interest Rates: One of the major features of ICICI Bank NRI Personal Loan is the interest rates of the loan. The rate of interest is pretty much affordable for the working class when compared to other major loans.

Fast Processing: When you apply for ICICI Bank NRI Personal Loan, you need to make sure that you have submitted all the required documents. Once the documents have been verified, the processing of the loan happens quickly and the amount will be credited to your bank account within no time.

Don’t Miss: What Happens If You Default On An Sba Loan

What Is A Personal Loan

A personal loan is an unsecured credit that you can borrow from a bank or any other financial institution to meet your immediate financial need that may range from home renovation, travel to expanding your business, or medical emergencies. The documentation required is minimal, and approvals are fast and hassle-free. Besides, personal loans do not seek collateral or security. Interest rates on personal loans vary from bank to bank, but factors like credit history, loan tenure, income, occupation, etc., will help get a better interest rate.

What Are The Procedures To Be Followed By Indian Company While Borrowing

How can NRIs avail home loan in India?

After taking a loan, the borrowing company should submit to the nearest office of the RBI:

  • Full details of the remittance received including a list containing name and address of NRIs who have given loan
  • Amount and date of money received
  • A certificate from the Company Secretary of the Indian company stating that all applicable provisions in regards to issue of Non-Convertible debenture have been followed

Also Check: Navy Federal Auto Loan Pre Approval Hard Inquiry

What Are The Conditions To Be Satisfied By Residents Of India For Borrowing In Indian Rupees From Nris

Resident of India can only borrow money in Indian rupees from NRIs. The conditions under which he/she can borrow are:

  • Borrowing shall be only on a non-repatriation basis. This means that funds once given cannot be taken back.
  • The loan can be received only in two ways. The first way is to debit the NRE/NRO/FCNR account of the NRI and give the loan to the Indian resident. The second way is by inward remittance from outside India.
  • The loan cannot be given for more than three years.
  • The rate of interest on such loan is fixed. The rate of interest should not be more than two percent above the Bank Rate prevailing on the day of giving of loan.
  • The repayment of the principal amount and the interest can be done only to the NRO account of the NRI.

Can An Nri Borrow From A Resident Indian

Yes, a resident Indian can give loans to an NRI relative subject to the following terms and conditions:

  • The loan should be free of interest.
  • Minimum maturity period should be one year.
  • The limit of loan is US$ 25.000.
  • The loan should be utilized by the NRI for his personal use.
  • Loan amount should be credited to the NRO account of the NRI.

Recommended Reading: Advantage Auto Loans Legit

Nri Personal Loan Documents

List of Documents for NRI and Co applicant

  • 1 passport size latest photograph of each applicant with signature across
  • Valid passport copies for all the applicants
  • Valid visa copies for all the applicants
  • Cheque / Draft in INR for fees and the date must be in.
  • Pan Card copy of Co Applicant
  • Address Proof of Co Applicant
  • Power of Attorney document as per Bank Format duly signed by all the applicants
  • Company details as per our format
  • Copy of current overseas residential verification proof of all the applicants to the loan.
  • Copy of PAN Card for the Ist applicant OR Form 60 as per bank format
  • Self attested address proof of all applicants

Faqs For Nri Personal Loan

NRI Queries on Mutual Funds, Home Loan, Personal Loan and ...

1. Does a person have to be a resident Indian to qualify for NRI personal loan?

A. Yes. Banks or other institutional lenders do not directly give the loan to any NRI. They require the primary applicant to be a resident Indian and the co-applicant can be an NRI.

2. Are the interest rates higher for NRI personal loans?

A. Yes. The risk of providing a loan to an NRI is higher hence the interest rate is slightly higher than rates for normal personal loans of the bank.

3. Are personal loans to NRIs short term loans?

A. The maximum tenure offered by most banks for NRI personal loans is 5 years. Many lenders provide loans for a shorter duration for example up to 3 years. Hence, like any other personal loans, NRI personal loans can be considered to be short term loans.

Thank you!

Read Also: Upstart Vs Avant

Can A Person Take 2 Home Loans In India

So, although, you can take home loans for more than one property, the aggregate amount of deduction shall be restricted to Rs 1.5 lakhs, for repayment of the principal amount of all the home loans taken together. This deduction too can be claimed, only after you have taken possession of the property.

Kvb Gruhapravesh For Nri

KVB to cater the needs of Non-resident Indians and Persons of Indian Origin has designed a specific product in the name of KVB – NRI – Gruhapravesh. The loan shall be availed for purchase of a ready built house in India, construction of a new house in India, home improvements / extension, land purchase and subsequent construction thereon within 6 months & for taking over of loans from other banks.

Non-resident Indians and Persons of Indian Origin shall avail the loan.

Personal Criteria:

  • Valid Indian Passport / Valid foreign passport .
  • A steady source of income.
  • Employed abroad for at least 2 years.
  • Valid job contract or work permit.
  • Minimum Net Monthly Income of US$ 1500 or Minimum Net Annual Income of US$ 18000/- .

Read Also: Can You Use The Va Loan To Buy Land

Documents Required For Nri Personal Loan

  • A copy of your passport and visa.
  • Salary certificate in English, specifying name, date of joining, designation and salary details.
  • Both domestic and international bank statements for the last six months.
  • If the applicant is not available in India when the application form is submitted, then a General Power of Attorney duly attested by the Indian consulate in the NRI’s resident country needs to be submitted. If applicant is present in India then the Power of Attorney can be locally notarized.
  • A copy of NRI’s appointment letter as well as contract.
  • In case the applicant is employed in the Middle East, then they need to submit a copy of their labour card/identity card that is translated in English and countersigned by the respective consulate.
  • In case the applicant is employed in the merchant navy, then they need to submit a copy of their CDC as well as their contract slip with Income details.

What Are The Conditions To Be Satisfied By Indian Companies For Borrowing In Indian Rupees From Nris

NRI Housing Loan In India l NRI Home Loan
  • The borrowing company should not be engaged in agriculture or real estate business or a chit fund company.
  • Borrowing can be done only by way of issuing non-convertible debentures. Such issue of a non-convertible debenture is made by public offer.
  • The rate of interest payable on such debentures shall not be more than three percent of the interest charged by the State Bank of India while lending. For example: If SBI charges 10% interest to anyone who takes a loan, then the interest payable on debentures issued to the NRIs by the Indian company cannot be more than 13%.
  • The loan should be repaid by the Indian company within three years.
  • If the borrowing is on repatriation basis, then the percentage of NCDs issued to NRIs to the total paid up value of all NCDs issued shall not exceed the ceiling prescribed for issue of equity shares/convertible debentures for foreign direct investment in India.
  • If the borrowing is on a non-repatriation basis from NRIs, then the amount of loan should be received either by inward remittance from outside India or by debit to NRE/NRO/FCNR/NRNR/NRSR account of the investor maintained with an authorized dealer or an authorized bank in India. Payment of interest and repayment of principal shall be made only to the NRO account of the lender.

Recommended Reading: Loan Signing Officer

Online Loans V/s Personal Loans: Know The Difference

  • In online personal loan no physical documentation is required where as in general personal loan physical documentations are required at many stages.
  • Processing and loan disbursal is very fast in the online personal loan which is generally from 2 to 4 hours, but in the case of conventional personal loans the processing takes much more time and that can be between 4t o 5 days depending on the financial institution with which you have applied.
  • Online personal loans are best option in case of emergency situations like medical emergency, travel emergency or any kind of financial emergency. When you are in any emergency then time matters for you a lot and for that online personal loan is best as it is having quick disbursal. Whereas the personal loan from a bank / NBFC can be availed for any personal requirement but for emergency we cant rely on the disbursal speed of the loan.
  • Online loans are being offered by only few organisations like Finance Buddha. In case of Finance Buddha for online loan the loan amount can be from 50,000 to 5,000,000. Whereas in case of personal loan you have many options i.e. many banks to go with. And in that case your loan amount depends on the bank with which you have applied.
  • As regards the interest rates and tenor period, for online personal loans the rates are somewhat higher than general personal loan as the tenor period is less as compared to that of the personal loan.
  • Personal Loan For Nris

    Non Resident Indians move out of the country for various reasons and throughout their stay outside India, many unforeseen situations can arise. As it can be hard to get financial aid in a foreign country where you are staying on a temporary basis, the facility of Personal Loan for NRIs can take care of your emergency expenses.

    There are many banks in India that offer this facility. The personal loans obtained from these banks can be used for anything ranging from home renovations to vacations. Both the process of getting these loans and the repayment methods have been simplified for NRIs. In this article, we will explore the different types of Personal Loans available for NRIs.

    Read Also: Used Car Loan Rates Usaa

    More articles

    Popular Articles