Personal Loan for NRI: Eligibility and Interest Rates

Indians living abroad may need funds to meet their unforeseen expenses, like medical exigency, unplanned travel, wedding in family, etc. A personal loan can be an ideal credit product at the time of financial crisis. Many banks and NBFCs offer an NRI personal loan in India at competitive interest rates. 

Personal Loan for NRI: Eligibility and Interest Rates
Personal Loan for NRI: Eligibility and Interest Rates

What is NRI Personal Loan

NRI personal loan is a variant of personal loan and is extended to Non-Resident Indians. NRIs can get a personal loan for various financial needs, like payment of medical bills, home renovation, wedding expenses, and a lot more. Aspects like application process, eligibility and repayment of the loan are the same just as a regular personal loan.

However, Non-Resident Indians who need a loan to buy or build a house or flat in India can get an NRI home loan at attractive interest rates. 

Top Banks for NRI Personal Loan in India

Some of the top banks that offer a personal loan for NRIs are mentioned below. You can compare personal loan interest rates and other features offered by different banks.

BanksInterest RatesMaximum Loan AmountMaximum Loan Tenure
ICICI Bank15.49% p.a onwardsRs. 10 Lakh36 months
South Indian Bank12% – 19.5% p.a onwardsRs. 1 lakh to Rs. 20 Lakh12 to 60 months
Kotak Mahindra Bank (Home Improvement Loan)10.25% to 24%Up to 80% of renovation cost10 years
Personal Loan for NRIs

ICICI NRI Personal Loan

Personal Loan for NRI: ICICI Bank

ICICI Bank is a premier Indian bank that offers a wide range of products and services to Non-Resident Indians. Personal loan for NRIs can be availed at an ICICI branch in India or NRIs can send an email at [email protected] to apply for a personal loan. Some of the key features of ICICI Bank personal loan for NRIs are as under:

  • Flexible tenure up to 36 months
  • No collateral/ security required
  • Quick processing and disbursal
  • Loan amount up to Rs. 10 lakh
  • Attractive interest rates 15.49% p.a.
Processing FeeUp to 2.25% of loan amount
Easy Monthly Installment (EMI) (for Rs. 1 Lakh)Rs. 3,491/- (loan tenure: 3 years)
Pre-Closure Charges5% of outstanding principal amount

Key Highlights and Benefits:

  • Applicant must be Resident Indian while the co-applicant can be an NRI and must be a close relative of applicant
  • Loan offered without security or collateral
  • Instant distribution of loan with a simple documentation process
  • Document proof required from both applicant and co-applicant

Apply for Personal Loan in ICICI Bank

South Indian Bank NRI Personal Loan  

Personal Loan for NRI: South Indian Bank

NRIs can get a personal loan from South Indian Bank for personal needs like medical expenses, debt consolidation, emergency travel, etc. 

Processing FeeUp to 2% of loan amount
TenureUp to 60 months
Pre-Closure Charges– Pre-payment charges: 5%
– Pre-closure charges: 5% after 6 months of loan disbursal
– 6% within 6 months of disbursal

Eligibility Criteria:

  • Employment Norms: Minimum of 2 years experience with 1 year in the current organization. Minimum 3 years for self-employed/ business person.
  • A resident co-applicant/ guarantor is required.
  • Loan offered without security or collateral.

Apply for Personal Loan in South Indian Bank

Kotak Mahindra Bank NRI Personal Loan (Home Improvement Loan)

Personal Loan for NRI: Kotak Mahindra Bank

Kotak Mahindra Bank offers Home Improvement Loans for NRIs having residential properties in India. The loan can be obtained for any type of home renovation requirements such as painting, waterproofing, electrical work etc.

Key Highlights and Benefits:

  • Provides funding for up to 80% of renovation charges
  • Loan offered is based on repayment capabilities of applicant and co-applicant
  • For properties with multiple owners, the co-owner must be included as co-applicant
  • Income of applicant and the co-applicant will be clubbed if both the applicant and co-applicant are NRIs. If applicant is an NRI and co-applicant is RI, income won’t be clubbed.

Eligibility Criteria

  • Minimum education: Graduation
  • Age: The maximum age shouldn’t exceed 58 years at the time of maturity of the loan
  • Work experience: Should be employed for at least 3 years
  • Minimum income:
    • For loan tenure up to 5 years: Annual gross salary should be at least:
      • $30,000 for NRIs based in USA/ UK/ other countries excluding Gulf
      • Dirhams 36,000 for Gulf Countries
      • $20,000 for merchant navy professionals
    • For loan tenure above 5 years
      • $42,000 for NRIs based in USA/ UK/ other countries excluding Gulf
      • Dirhams 48,000 for Gulf Countries
      • $26,000 for merchant navy professionals

NRI Personal Loans are very helpful but are offered by only a handful of Indian Banks. Therefore, it’s essential that you know about the eligibility details for such kinds of loans.

Eligibility for Personal Loan for NRIs

While the eligibility criteria may slightly vary from lender to lender, following are some basic eligibility criteria for NRI personal loans:

  • Loans provided to salaried and self-employed NRIs.
  • Age of the applicant should be between 21 years at the time of application and should not exceed 55 years when loan is closed.
  • Salaried: The applicant must be employed in the same company for at least 1 year and a proof of income is mandatory while applying for the loan.
  • Self-Employed: Continuity of business proof is required (at least 3 years of business vintage). Some banks waive this requirement if the applicant has a real-estate property in India.
  • Most banks have Specific income criteria for NRIs based on the country of employment
  • A co-applicant is must. He/she must be a close relative (earning or non-earning).
  • In most cases, applicant to be a resident Indian and the co-applicant should be NRI close relative.

Documents Required

  • Copy of Passport and Visa
  • NRE/ NRO bank statement for last 6 months
  • Proof of Identity
  • Proof of Address
  • Salary Slips or Salary Certificate

Note: Identity and Address Proof documents must be submitted for the applicant as well as the co-applicant.

Verify your documents

Things to Consider before applying for NRI Personal Loans

  • Personal Loans help to overcome emergency financial needs. These loans are often unsecured with no security or collateral, hence they bring in higher interest rates. If you get a an alternative, make sure to compare the pros and cons
  • NRI Personal Loan can be tough to access being abroad. You can enquire directly with the bank or send your relatives/friends to the bank branch in India to get more information
  • Check with the bank about their loan currency and disbursement policies. In some banks you can choose between Indian Rupees and US Dollars based on their policy
  • Having a co-applicant is essential and that too a close relative. Therefore, if you don’t have any close relatives in India, getting a personal loan can be very difficult. Contact the bank to know more about their co-applicant policies

Once you have checked these boxes, you can move ahead and go through with the application for Personal Loan. How? Well, let’s discuss that in the next segment.

NRI Personal Loan: How to Apply?

The process of obtaining an NRI Personal Loan is simple. However, it can be challenging for NRIs who are residing abroad. But, you don’t need to worry. Most of these banks that provide such loans have a completely dedicated NRI Helpdesk for enquiries about loans and other NRI Banking Solutions. If you are already a customer of these banks, the entire process becomes easier for you compared to others who don’t have an account here. Enquiries can be directed to these banks through phone and emails. Also, NRIs having relatives in India can ask them to visit the bank branch and enquire about the personal loan facility for NRIs. Or you can also contact the customer service department and they will guide you through the entire process involved in obtaining these NRI Personal Loans.

Personal Loans for NRI is a very useful blessing for NRIs in need of an emergency financial aid but a word of caution is always welcome. The applicants must compare and contrast the available mediums of financial aids and then only go ahead with the best suited option. Nevertheless, Personal Loans for NRIs have made it easier to tackle emergencies when staying abroad and is an element of backup for all our NRI friends scattered across the globe.

For more queries on Loans and Investments, visit our SBNRI Blog.


1. Are there any restrictions on how the money is spent?

A- No. There are no restrictions. No bills or receipts are required to validate the expenses

2. How can NRIs get the personal loan amount?

A- The loan amount is credited in the NRE or NRO Account of the NRI. Most banks provide loans in INR while some also provide the loan in foreign currency. You can check with the bank about their currency and disbursement policies

3.Can I take a personal loan even if I am already paying EMIs for another loan?

A- Yes. You can take a personal loan even if you are already paying EMIs for another loan. This is totally dependent on the income level of the applicant. If he/she has a certain percentage of disposable amount after all the monthly EMIs are deducted, a new loan can be availed

4. Can I apply online for personal loans? 

A- Yes, you can apply for a personal loan online. However, you need to check with the bank to guide you through the entire process

5. Can I ask my friend to sign as the co-applicant?

A- No. Most banks require the co-applicant to be a close relative of the applicant. However, you can check with the bank to know whether this option is available

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