Loans for NRIs | North Loop Official Blog
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08 Nov 2020

Loans for NRIs

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NRIs or Non-Resident Individuals are Indian Citizens/ residents of Indian origin who reside outside India for the purpose of education, employment, etc. for a period of 240+ days in a financial year.
While settling abroad, NRIs can face a lot of unforeseen financial difficulties in another country, and fortunately, NRIs can avail loans in order to meet their financial needs.

Like any other Indian residents, NRIs are eligible to avail loans from various banks and NBFCs in India. However, in order to do so, an NRI would primarily be required to open an NRE/NRO account, post which various loans can be availed. The type of loans, interest charged, and the amount sanctioned can vary based on various factors such as Credit Scores, the age of the loan recipient, income, etc.

NRI Loan in India

Depending on the type of financial requirements, NRI Loan in India is mainly of 2 types - Secured Loans and Unsecured Loans.

Secured Loans- These are the type of loans wherein individuals can borrow money from Banks and NBFCs upon the provision of collateral. The money sanctioned and the repayment tenure is generally higher than unsecured loans and the interest rates charged are relatively lower.
The type of secured Loans primarily offered to NRIs are Home loans and Car Loans.

Unsecured Loans- These are the type of loans that do not require an individual to provide collateral. The amount sanctioned and the repayment tenure is sufficiently lower than Secured loans and the interest rates charged are significantly higher.
The type of unsecured loans primarily offered to an NRI are personal loans.

Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes

NRI home loans

NRI home loans are the type of loans offered to NRIs for the purpose of buying a flat/plot/house or for the purpose of constructing a house.
The amount of money sanctioned to NRIs is considerably higher than other loans and the repayment can be made as a whole or in the form of EMIs. NRIs have to stake their property itself while applying for home loans from Banks and NBFCs till the loan is repaid.

Home Loan Eligibility-

In the case of Non-Resident Indians, one is required to be a minimum of 18 years and up to 65 years for a home loan to get sanctioned. At least a minimum of 2 years work experience is required in the case of salaried employees and a minimum of 3 years work experience is required in the case of self-employed individuals (varies from bank to bank). Banks also expect good credit scores (which again vary across banks). Up to 90% of property value can be sanctioned as a loan.

Home Loan Documentation-

Documents Required for NRI Home Loans (Requirements can vary depending on the bank)

  • Passport

  • Work visa copy

  • Proof of valid work permit

  • Employment contract copy

  • Current proof of residence

  • Salary slips of past 3 months

  • Salary account statement for the past 6 months

  • Property papers of the NRI

Home Loans offered in India-

Banks offering NRI Home Loans in India
Name of the BankInterest Rates Charged
NRI Home Loan- SBI7% onwards
NRI Loan HDFC6.90% onwards
ICICI Bank 6.90% onwards
Axis Bank7.75% onwards
NRI loan federal bank7.90% onwards

Car Loans-

These are the type of secured loans offered to individuals for the purpose of buying a car. The car itself will qualify as security while sanctioning a car loan. Car loan tenures often range between 5 - 7 years and banks provide up to 90% loan on the ex-showroom rate of the vehicle.

Eligibility for car loans-

Car loans can be availed by NRIs, provided they are Salaried Employees or Business persons/ professionals between the ages of 21-65 years, provided they have a good credit history and a relevant employment/business-related track record.

Documentation required for car loans-

  • Proof of income

  • Valid Passport

  • Proof of valid work permit

  • Proof of residence

  • Documents of existing NRE/NRO account

Personal Loans-

These are the type of unsecured loans that are availed by NRIs to meet any personal financial expenses such as medical expenses, wedding-related expenses, etc. NRIs can avail of Personal Loans of up to Rs. 10 Lakhs in India without the requirement of providing collateral.
However, the interest rates can be significantly high for the same.

Personal Loan Eligibility criteria for NRIs-

Personal loans can be availed by NRIs, provided they are Salaried Employees or Business persons/ professionals between the ages of 21-65 years, with a good credit score as specified by the bank.
In the case of salaried employees, the minimum years of employment should be 2 years with 1 year in current employment.
In the case of businesses, the business should have a minimum of 3 years of operation.

Documentation required for personal loans-

  • Valid Passport/Visa copy

  • Bank statements

  • Salary slips

  • NRE/NRO bank statements are specified by the bank

  • Proof of residence

  • Work permit

North Loop offers a wide range of fintech solutions, ranging from personal loans, overdrafts on FDs, credit cards, line of credit, new immigration loans, and education loans, with some not even requiring a credit history. Click here to know more about the loans offered by North Loop.

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