NRI Loans

Every year, a large number of Indians move abroad for jobs, higher education, etc. Many of them live abroad only on a  temporary basis and wish to return to India in future. Those NRIs may need loans in India for a variety of financial requirements. Many Indian banks and NBFC offer NRI loans to non-residents to help them fulfill their financial needs.

What is NRI loan?

Similar to people living in India, non-resident Indians can also get loans from a bank or NBFC (Non-Banking Financial Company) in India. A loan offered to non-resident Indians is called an NRI loan. NRIs can get loans to buy a house, car, or to meet several kinds of unforeseen financial expenses. Interest rates vary depending on the type of loan and bank you apply for the loan with.

NRI loan types 

There are various types of NRI loans viz. personal loan, home loan, car loan, loan against deposits, etc.  Irrespective of which loan you get, you need to repay the loan amount along with the applicable interest to the bank in monthly installments called EMI over a period of predefined time.  

NRI personal loan

NRIs can get a personal loan to meet an array of unforeseen financial expenses, such as emergency travel, home renovation, debt consolidation, medical emergency, or for any legal purpose. Interest rates on NRI personal loans vary from bank to bank. Following are the top Indian banks that offer a personal loan to Non-Resident Indians. 

Bank NameInterest RateLoan Amount Tenure
ICICI Bank 15.49% p.a.Up to Rs. 10 lakh36 months
HDFC Bank10.50% – 21.00%Up to Rs. 40 lakh62 months
South Indian Bank– Minimum: Repo Rate (4%) + 6.60% = 10.60% p.a.

– Maximum: Repo Rate (4%) + 14.10% = 18.10% p.a.

– Concession of 0.1% is offered to woman borrowers

Rs. 1 lakh to Rs. 20 lakh12 months to 60 months
Kotak Mahindra NRI Home Improvement LoanVaries depending on the loan amountUp to 80% of the home renovation expensesUp to 10 years

                                          NRI personal loan comparison

Note: Interest rate and loan amount are subject periodic change and vary depending the eligibility of the applicant

Features and benefits of NRI personal loan

  • Flexible loan amount: You can get a personal loan starting from Rs. 50,000 to Rs. 10 lakh to meet various financial needs.
  • Flexible end-usage: A personal loan can be availed to any personal financial requirements unless the fund is used for illegal activities.
  • Easy application: Personal loans are unsecured loans and require minimal documentation. 

NRI home loan

Indians living around the world can realize their dream of buying their own home in India with an NRI home loan. A home loan can be availed for a wide range of housing needs, such as purchase of flat/ house/ plot, construction, and renovation/ repair of an existing home.  Listed below are the top banks for an NRI home loan:

Bank/ LenderInterest RateLoan AmountTenure
SBI7.55% onwardsUp to Rs. 30 lakh30 years
HDFC Bank6.75% to 8.20%Up to Rs. 75 lakh25 years
Bank of Baroda6.90% onwardsUp to Rs. 2 cr30 years
ICICI Bank7.10% onwardsRs. 5 lakh to Rs. 1cr30 years
Federal Bank8.55% to 8.70%Up to Rs. 15 cr20 years
PNB Housing Finance7.50% to 9.95%Up to Rs. 75 lakhUp to 15 years
Axis Bank7.60% to 12%Up to Rs. 30 lakh25 years

                                      NRI Home Loan Comparison

Note: Interest rate and loan amount are subject periodic change and vary depending the eligibility of the applicant

Features and benefits of NRI home loan

  • Attractive rate of interest: Banks and NBFCs offer NRI home loans at attractive interest rates starting from as low as 6.75%. 
  • Longer repayment tenure: A home loan for NRIs can be availed for up to 30 years, which means NRIs have sufficient time to repay the loan.
  • Higher loan amount: Home loans are secured loans. Many banks offer a home loan up to Rs. 1 cr or even more than it. 
  • Multipurpose loan: Home loans are available for a variety of purposes, such as purchase of house/ flat/ plot and construction house.

NRI Loan against FD

Non-resident customers can also get loans against NRI fixed deposits to fulfill their financial requirements. Loan against NRI FD is a type of secured loan extended to customers who can pledge their NRI fixed deposit as security and get a loan in return. The loan amount will depend on the FD amount, ranging from 80% to 95% of the FD amount. 

You can get a loan against NRE/ NRO rupee deposits or FCNR deposits. Listed below are the loan limit against NRI FDs:

BankLoan Limit
SBI NRI DepositUp to 90%
ICICI Bank NRI DepositUp to 90%
HDFC NRI DepositUp to 90%
Axis Bank NRI DepositUp to 85%
Citibank NRI DepositUp to 90%
Kotak Mahindra BankUp to 85%
Yes Bank NRI FDUp to 90%
Bank of Baroda NRI FD95%
PNB NRI FD90%
Canara Bank NRI FD90%

                                                       Loan against NRI FD

Note: Banks do not offer loans against FD benefits to the investors of 5-year tax-saving FDs.

Features and benefits of NRI loan against property

Here are key benefits of a loan against NRI FD

  • Lower interest rates: Interest rate charged on a loan against FDs is lower when compared to other loans.
  • No need to break FD: To take a loan, you don’t need to go for premature withdrawal.
  • No processing fee: Processing fee is not charged.
  • Easy repayment: Loan can be repaid in one go or in installments (not later than the FD tenure).

Eligibility for NRI loan

While eligibility criteria will vary depending on the type of loan and lender, here are common conditions to get a loan in India for NRIs:

  • Age: Minimum 21 years to 65 years or retirement age whichever is earlier at the time of maturity of loan.
  • Eligible profiles: Salaried and self employed NRI and OCIs.
  • Minimum income: Varies depending on the loan amount, country of residence, loan type, etc.

Documents required for NRI loan

Like eligibility criteria, documentation also varies depending on the loan type, lender, etc.

  • NRI loan application form and passport size photographs – signed by applicant(s)
  • KYC documents – Identity proof, overseas/ Indian address proof, signature proof, etc.
  • Residence proof in India – Aadhaar card/ passport copy
  • Valid passport and visa copy
    • For OCIs and PIOs – OCI/ PIO card
  • Cheque for processing fee from NRE/ NRO/ overseas salary account of applicant
  • Power of attorney document duly signed by applicant
  • Property papers in case of home loan

If you want to get a home loan in India, you can get in touch with us. We at  SBNRI are here to help you out with everything related to home loans and other financial and legal services required by NRIs. 

You can  download SBNRI App to connect with our experts and get end-to-end assistance related to an  NRI home loan.

You can also click on the button below to ask any questions Visit our blog and YouTube Channel for more details.

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