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People move out of the country for various reasons like education, job, etc. Unforeseen financial expenses arise even during times when you are living abroad. If you are living in another country only on a temporary basis, it could be extremely difficult to obtain loans in that country for your urgent financial needs. In this scenario, you can take care of your emergency personal expenses with the help of personal loans available for non-resident Indians (NRIs).
There are many top banks in the country that offer personal loan for NRIs. The personal loan obtained from these lenders can be used for anything ranging from home renovation to vacations. The process for getting these loans have been simplified for NRIs. The same can also be said about repayment methods. Let’s take a look at the different types of personal loans available for NRIs.
Some of the top lenders that provide personal loans to NRIs are listed as follows:
Lender | Interest Rate | Maximum loan amount | Maximum loan tenure |
---|---|---|---|
ICICI Bank | From 15.49% p.a. onwards | Rs.10 lakh | 36 months |
South Indian Bank | From 11.70% p.a. onwards | Rs.25 lakh | 60 months |
Home Improvement Loan by Kotak Mahindra Bank | Varies based on the loan amount | Up to 80% of the home renovation expenses | 10 years |
ICICI Bank is one of the top players in the private banking sector in India. The bank has a diverse range of loan products suitable for NRIs. It is also one of the very few banks in India that offers personal loans to NRI customers. You can use this loan for any of the emergency financial needs including home renovation, wedding, medical emergencies, etc.
Benefits and key highlights:
Bank Name | Processing Fee | EMI (for Rs.1 lakh) | Pre-Closure Charges | |
---|---|---|---|---|
ICICI Bank | Up to 2.25% of the loan amount | Rs.3,491 (for loan tenure of 36 months) | 5% of the outstanding principal amount |
South Indian Bank is a renowned bank in the private sector that offers various loan products to its customers. NRIs can avail the personal loan offered by the bank to take care of their emergency financial needs. The bank offers personal loans to NRIs at an affordable interest rate.
Benefits and key highlights:Bank Name | Processing Fee | EMI (for Rs.1 lakh) | Prepayment charges | |
---|---|---|---|---|
South Indian Bank | Up to 2% of the loan amount | Rs.3,305 (for loan tenure of 36 months) | 4% of the outstanding principal (if paid within 12 months) 2% of the outstanding principal (if paid after 12 months) |
This is a personal loan taken for the specific purpose of home improvement. Kotak Mahindra Bank offers this loan to NRIs who have residential properties in India. This loan can be used for any kind of home renovation requirements including painting, decoration, waterproofing, construction, electrical work, etc.
Benefits and key highlights:Bank Name | Processing Fee | EMI (for Rs.1 lakh) | Prepayment charges | |
---|---|---|---|---|
Kotak Mahindra Bank | Contact the bank for details | N/A | N/A |
Identity and address proof documents must be submitted for the applicant as well as the co-applicant.
The application process for personal loans is typically very simple. However, it could be a little challenging for NRIs to apply for personal loans in India from another country. Since most banks have NRI helpdesks, it is possible to contact this service and enquire about the availability of loans. NRIs who are already customers of these banks may get loans easily compared to other customers. It is possible to enquire with the bank through email or phone. Those who have relatives in India can send their relatives to the branch office to get an update on these loans. The customer service department can also be contacted to guide the applicant with the process involved in getting the loan.
Lenders do not have any restrictions on how the personal loan amount is spent. Borrowers are not required to provide any bills or receipt to the bank to validate their expenses.
NRIs can get the personal loan amount from the bank in their NRE or NRO accounts. Most lenders provide the loan amount in Indian rupees. However, some banks also provide these loans in foreign currency. You may check the lender to know about the mode in which the loan amount is disbursed.
The conditions vary from one lender to another. This is typically based on the income level of the applicant. While taking a new loan, the applicant must provide information about his/her existing loans. It is necessary for the applicant to have a certain percentage of disposable income after paying all the monthly EMI installments. If this condition is satisfied, the applicant can avail a new loan even with an existing loan.
Online application facility is available for personal loans. However, NRIs might check with the bank about the process before making the application online. You may contact the customer service centre and ask them to guide you with the process.
As per the terms and conditions of most banks, the co-applicant for personal loans must be a close relative. Hence, many banks do not accept friends as co-applicants for personal loans. However, you may check with the bank to know whether this option is available.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.
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