Often, tracking and managing your finances as an Indian living abroad can be a challenge. Different policies, banking systems, criteria, and other factors add to the adversity.
However, finding a personal loan in India as an NRI is simple and effective. Thus, understanding NRI personal loan eligibility and interest rates is crucial. You can always return to your homeland during any big or small trying time.
Today, personal loans are among the most necessary financial facilities that help manage expenses and savings. Just like a personal loan, an NRI personal loan is just a variant that works in the same way to assist Indians residing abroad to handle finances.
Several Indian banks render loans to NRIs starting at interest rates ranging from 10.05% per annum to higher. Banks like HDFC, Citibank, ICICI, Punjab National Bank, State Bank of India, etc., are popular choices.
Overall, booking NRI personal loan in India gets simplified with transparent procedures, hassle-free disbursements, and minimal documentation. Usually, these are short-term loans that require paying back within 5 years.
There are two types of NRI personal loan in India.
A secured NRI personal loan requires a pledged collateral security. These loans can be obtained from any family member, co-applicant, or guarantor. Here, banks demand collateral if the loan amount is too high or the borrower’s credit profile is insufficient.
Compared to a secured personal loan, an unsecured NRI personal loan demands zero collateral; however, the catch is that the interest rates are higher as it is a risker situation. The banks also assess the borrower's repayment capacity before offering this unsecured loan.
An NRI personal loan in India is offered only to salaried or self-employed individuals. Check out the NRI personal loan eligibility criteria.
While these are the general criteria, some banks may also have specific norms for eligibility. Besides, banks also specify a minimum loan amount and a maximum tenure for repayment.
Take a look at the different interest rates offered by the top banks in India:
Depending on the bank/lender, applicants may have to submit other documents too.
Emergency financial needs may arise anywhere at any time. These situations can be more challenging for individuals residing outside India as banking and credit systems abroad are more complicated for immigrants.
Whatever the need, there are several options for an NRI personal loan in India, fulfilled by banks. All you need to know is the basic NRI personal loan eligibility criteria and the interest rates set by banks/lenders.
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Usually, lending banks specify different maximum and minimum loan amounts. However, NRI applicants can apply for personal loans ranging from INR 2,00,000 to INR 20,00,000.
Each bank offers different services and norms for a personal loan to NRIs. Applicants must fit into the eligibility criteria as specified by banks and submit the necessary documents. NRIs can receive a personal loan from the bank into their NRO/NRE accounts.
