A checklist for NRIs seeking loans in India

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NRIs are offered loans at an affordable rate of interest without providing any collateral or security. An NRI’s capacity for repayment of NRI loan is stronger than any Indian resident. You can get to know more about the types of loans that an NRI can avail of in India.

Types of NRI Loan

  1. NRI Home Loan

The Indian Real Estate market is appealing for Non-Residents of India (NRIs) as Indian rupee is observing a major drop down against the dollar in recent months, making it simple for the NRI’s to earn in a stronger currency and make payment in Indian rupees. They can also purchase the property by taking home loans from the Indian banks. NRI’s can take home loans for as many properties as they want but their ability for repayment should always be taken into consideration. The interest rate is higher for NRI’s. Banks determine the eligibility of loan amount of NRI’s based on their credit history and income. However, the documentation process and formalities are complicated for NRI’s to avail the loan.

Eligibility Criteria

  • The age of the applicant should be 18-60 years.
  • The applicant can only avail of the loan if they have been employed abroad for two years or more.
  • A valid passport is required to apply for the loan.

Documents required

  • Permanent address proof in India
  • Last three month’s attested salary certificate
  • Electricity / Telephone bills
  • Passport copy
  • Certificate of work experience and appointment letter from the current company
  1. NRI Education Loan

The growing cost of education has increased the demand for education loans. NRI Education loan is financial support for students pursuing higher studies to provide for their tuition fees, admission cost and price of books abroad or India. The loan amount may differ from 4 lakhs – 20 lakhs depending on the purpose of the loan.

Eligibility Criteria

  • Candidates who have cleared the entrance examination of the specified institutes can avail of this loan.
  • The student and parent/guardian jointly must be the applicant of the loan.

Documents required

  • Proof of admission in the specified institute and course
  • Proof of salary certificate of parent/guardian
  • Details of expenses for the course
  • Copy of passport of student and parent/guardian
  1. Personal loan for NRI’s

Indians move to abroad for different reasons like education, jobs, etc. While living abroad, unexpected financial expenses might arise and it’s hard to obtain loans when you are temporarily living in another country. With NRI personal loan, you can look after your emergency personal expenses. Application of loans and repayment method has now become easier.

Eligibility Criteria

  • NRI personal loans are provided to salaried or self-employed individuals living in abroad. Proof of income must be provided to the bank while applying for this loan. Salaried individuals must be employed in the same company for a minimum of one year.
  • The income criteria of the applicants set by the banks differ on the basis of the country in which they are employed.
  • Before providing the loan, banks require a local co-applicant who is the family member of the applicant. The local co-applicant can be employed or unemployed individuals.

 Documents required

  • Identity proof
  • Address proof
  • Salary certificate
  • Passport copy

The application of these loans from another country might be a little hard for NRI’s. They can contact the NRI helpdesk available at banks to enquire about the loans. NRI’s who are existing customers of the banks they are applying in can easily get the loan as compared to others. Applicants can contact the customer service department to get guidance with the application process.

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