Paisa

NRI Personal Loans

Overview

There are very few private banks available who offers personal loans to NRIs including both secured and unsecured personal loan.

When it comes to Personal Loan, you should not be left out just because you are an NRI. While most of the banks and financial institution ignore lending personal loan to an NRI, be it unsecured or even secured; However, there are very few private banks available who offers personal loans to NRIs including both secured and unsecured personal loan.

An eligible NRI can avail personal loan in India either in Indian Rupees or in a foreign currency, be it a salaried working in an organization overseas or a self-employed applicant running his/her business or working as self-employed professional.

Types of NRI Personal Loan


- Secured Personal Loans

Secured Personal loans are the ones that you take against any of your asset. You offer a collateral to the lender for a predefined period and get it released when you repay the loan amount in full including interest and all the other charges. This asset can be anything such as FCNR Deposit or NRO/NRE Accounts. An eligible borrower can avail as high as up to 95% of their deposit/account.

- Unsecured Personal Loans

Unsecured Personal loans are the loans that you avail without offering any collateral to the lender. The interest rate for unsecured loans are usually high. Since this kind of loans are not secured with any asset or lien, most of the banks and financial institution avoid offering unsecured personal loans to NRIs.

NRI Personal Loan Offers


Bank/FI Interest Rate Processing Charges Loan Amount Tenure
ICICI Bank 15.49% Onwards 5.49% Onwards Upto Rs. 10 Lacs 12-36 Months
South Indian Bank 11.45% - 11.55% 2% of loan amount Up to Rs. 25 Lacs 12-60 Months
SBI 10.75% - 15.15% Nil No Max Limit 12-36 Months
Andhra Bank NRI Personal Loan 2% to 3% over Foreign deposit rate 2.75% of the loan amoun Upto Rs. 20 Lacs 12-60 Months
BOB 10.30% - 13.30% 2% of the loan amount Upto Rs. 10 Lacs 12-60 Months

Eligibility for NRI Personal Loans


  • Co-applicant is must to have, either earning/non-earning.
  • The co-applicant must be an resident indian citizen and should be presented in India at the time of loan application.
  • NRI Applicant should have a regular source of income.
  • Must have a foreign account (NRE/NRO) account for remittance for the loan EMIs.
  • NRI must have located overseas for more than 24 months in continuity.

Documentation for NRI Personal Loans


Documents Required for Salaried NRI Applicants:

  • Passport copy
  • Visa copy
  • Bank statement of NRE Account
  • Official e-mail ID or HR e-mail ID
  • Salary slip or salary certificate
  • NRE/ NRO bank statement for 6 months
  • Documents for Local Co-applicant

Documents Required for Self-Employed NRI Applicants:

  • Passport copy
  • Visa copy
  • Bank statement of showing inward remittances
  • Residence proof in the name of the applicant / parent
  • Documents for Local Co-applicant

Things to Consider before Applying


- Margin Money

Personal Loan usually don't have margin money clause; However, it is applicable in case of personal loans to NRIs. An eligible NRI might have to pay margin money from 5% to up to 50% of the loan amount, depending upon if the loan is takes against NRO/NRE account or FCNR Deposit.