5 Best Personal Loan Offers for NRIs in India

In times of financial exigencies, Personal Loans offer you the much-required financial flexibility. There is no need to dip into your savings to meet the requirement at hand. You can avail a personal loan from any financial institution of your choice within a few working days. Moreover, the repayments have to be made in easy EMIs over an extended repayment tenure.

All these features make “Personal Loan“ an ideal credit product at the time of financial crisis. These are all-purpose loans that can be used for multiple purposes. You do not need the lender’s approval to consume the credit.

Bajaj Finserv Personal Loan, HDFC Personal Loan, and SBI Personal Loan are some of the most popular Personal Loans available for Indian residents. But if you are an NRI and looking for a Personal Loan, then you must know that not all banks offer loans for NRIs. Being an NRI, you cannot apply for a Personal Loan available for Indian residents. You are required to apply for a Personal Loan for NRIs.

Comparison of NRI Personal Loans Offered by Top Banks

Features of an NRI Personal Loan

Some common features of NRI personal loans are:

• The NRI personal loan loan needs a co-applicant who should be an Indian resident.
• The Indian resident co-applicant can be earning or non-earning member.
• Some lenders (who do not require co-application) may ask for an asset to be pledged as collateral.
• NRI personal loan interest rates are usually higher than non-NRI personal loan interest rates.
• Like regular personal loans, the application process for NRI personal loan is also quick ad easy.
• These are multipurpose loans.
• The personal loan is credited to your account in the currency of your preference.

Types of NRI Personal Loans

There are the following two types of NRI personal loans in India.

Secured Personal Loan: A secured NRI personal loan needs you to pledge an asset as collateral security. This loan can be obtained by any family member, co-applicant, or guarantor. Herein, lender ask for collateral if the loan amount is way too high or the credit profile of the borrower is insufficient.

Unsecured Personal Loans: Unlike a secured personal loan, an unsecured NRI personal loan requires zero collateral. However, the interest rates for these unsecured loans are higher than secured ones as it is a risker situation for lenders. The banks also scrutinize the borrower's repayment capability before offering an unsecured loan.

Eligibility Criteria for NRI Personal Loans

Here are the eligibility criteria followed by financial institutions for determining the eligibility for a Personal Loan for NRIs.

• Salaried professionals: An NRI Personal Loan can be obtained easily if you are a salaried professional in the country where you work. You must be working at your current job for at least one year and should have documentation to prove the same.
• Self-employed professionals: If you are a business owner abroad, then the continuity in the business must be at least 3 years. If there is any other property that you own in India, then the prospects for approval of your application significantly increase.
• Income criteria: The income criterion is significant. A lender wants that the borrower is earning a steady income for the past few years, and they expect the trend to continue in the future as well. The minimum income required for approval of the loan depends on the amount you have applied for and the country you are working in.
• Co-applicant: If you are applying for a Personal Loan for NRIs, then the lenders will ask for a local co-applicant who is a close relative. The signature of the co-applicant will be required while signing the loan agreement. Identity and address related documents have to be submitted for verification.

Documents Required for NRI Personal Loans

NRI applicants are usually required to submit some basic documents to avail personal loan as mentioned below:

• Duly filled and signed application form along with recent passport-sized photographs
• Copy of the applicant’s passport and visa.
• Proof of identity (for both applicant and co-applicant) such as aadhar card, PAN card, passport, or any other valid document.
• Proof of address (for both applicant and co-applicant) such as passport, aadhar card, or any other valid document.
• Proof of income including bank account statements of Indian and international accounts for the last 6 months, salary certificate (in English)/ salary slips for the last 6 months.
• Proof of employment such as appointment letter, HR’s email ID or official email ID, job contract, labour/ identity card/ CDC (for NRIs who are working in the Middle East or employed in Merchant Navy).
• Lenders may ask for additional documents depending on their internal personal loan documentation policies.

Things to Know Before Applying for NRI Personal Loan

If you are an NRI and applying for a Personal Loan, there are a few things that you need to know:

• High-interest rate: Since Personal Loans are unsecured loans, the interest rate will be higher than secured loans. However, the rate of interest is at par with regular Personal Loans.
• Easy communication: The queries regarding loan credit or monthly payments can be made over telephone or email. Also, any doubt can be clarified with the help of co-applicant staying in India. You need not come to India for any query or process pertaining to the said loan.
• Currency preference: The Personal Loan will be sanctioned and credited in either Indian currency or a different currency, depending on the country you live in. This preference will usually be asked when you are signing the loan documents.
• Co-applicant: If you do not have relatives in India, then the chances for approval for a Personal Loan for NRIs are bleak.

Best Personal Loan Offers for NRIs in India

If you are in an emergency and you have all the necessary documents required to avail a personal loan for NRIs, consider the following best Personal Loan offers for NRIs: –

• South Indian Bank

The South Indian Bank offers an NRI Personal Loan for up to Rs. 20 Lakhs for education, medical, and travel-related requirements. The target customers are salaried employees working in government and non-government organizations, self-employed professionals, and self-employed non-professionals like traders and wholesalers. The maximum repayment tenure available is 60 months with the interest rate at 13.10% to 20.10% p.a.. Processing charges are up to 2% of the loan amount sanctioned.

• ICICI Bank

ICICI Bank offers unsecured Personal Loan for NRIs with no collateral requirement. You can avail a Personal Loan up to 10 Lakh from ICICI Bank. The application process is simple, with minimal documentation and quick processing. The rate of interest starts from 15.49% per annum, and the maximum repayment tenure available 36 months. This money can be used for any travel, medical, or personal requirements of yours. ICICI Bank charges up to 3% of the sanctioned amount as processing fees.

• HDFC Bank

HDFC Bank does not offer unsecured Personal Loans for NRIs. HDFC Personal Loans are secured if availed by NRIs. You can avail Overdraft against your investments such as Shares, Mutual Funds, Insurance Policies, etc. Moreover, you can also apply for a loan against Fixed Deposits in the form of an Overdraft against your NRE/NRO/FCNR.

• State Bank of India

SBI NRI services offer various products for Non-Resident Indians such as NRI Car Loan, Loan against NRI Deposits, and online Overdraft against NRI deposit. To avail this facility, you need to satisfy the bank regarding your income, existing deposits, and properties. The processing fee is very less, and no hidden charges are deducted. However, an NRI account must be created with an average balance of Rs. 50,000 to avail the service.

• Kotak Mahindra Bank

Kotak Mahindra Bank offers NRI Loans for Home Improvement. The NRI Home Improvement Loan requires minimal documentation and is processed within a few working days. This loan provides funding of up to 80 percent of the expenses incurred on Home Renovation. The bank offers convenient payment options for its customers to repay the loan easily.

These are the top 5 best Personal Loan offers for NRIs in India. So, select the one which meets your requirements in the best possible manner and get rid of your financial problems effectively.