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NRI Loan
An NRI (Non-Resident Indian) can be an individual,
- Who is a Person of India Origin (PIO), residing abroad for education, employment, business-related purposes, or any other?Â
- Who is an Overseas Citizen of India (OCI), previously a citizen or native of India, guaranteed certain rights conventional for Indian citizens.
- Who stays outside India for more than 182 days in the preceding fiscal year for business, vocation, employment, or any other reason.
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NRI loan or a Non-Resident Indian Loan is a type of loan given to people who are not in the country (India) they are borrowing from. If you live in any country for an indefinite period, obtaining a loan from the residing country is complicated without a permanent resident card. Therefore, to meet unforeseen expenses, the Non-Resident Indian applicant can easily avail of an NRI loan to meet his capital requirements with the help of a personal loan for NRI in India.Â
The NRI loan is given by banks and other financial institutions to NRIs. They can be used for any purpose and repayment can be made in Indian Rupees or the currency of the country where the person is residing.
But first, according to FEMA (Foreign Exchange Management Act), the NRI carrying out financial transactions in India MUST maintain an NRI account from any of the following.
NRO (Non-Resident Ordinary): NRO is a type of bank account that is opened in the name of an individual who does not reside in India. NRIs, PIOs, and OCI holders are eligible to open an NRO account and manage their local earnings and expenses. The main benefits are that one can have multiple NRO accounts and there’s no time limit for deposits.
NRE (Non-Resident External): NRE is a type of bank account used to transfer external (foreign) earnings to India. The money deposited in this account is converted to INR (Indian Rupee) and can be used (maintained or withdrawn) by the Individual in the form of savings or fixed deposits freely without any end-use restrictions.
FCNR (Foreign Currency Non-Resident): FCNR allows NRI applicants to deposit funds or income in the foreign currency earned as an investment without any taxes or currency fluctuation losses incurred.
If you are a non-resident Indian (NRI), you should file an income tax return in India if you have taxable income in India. For example, if you earn income from a business or property in India, you will need to file a return. Additionally, if you have income from other sources such as interest on Indian bank accounts or investments in India, you may also be required to file a return. If you are unsure whether or not you need to file a return, you can contact the Indian tax authorities for clarification.Â
Remember, it is always better to err on the side of caution and file a return even if you are not sure whether or not you are required to do so. This will ensure that you are not penalized for failing to file a return when you should have.
Unique Points & Features
High LTV
Depending on the purpose of the NRI loan, the NRI applicants can avail of loans higher in amount with lump sum payout features.
Affordable interest rates
On a monthly reducing basis, an NRI loan has several affordable and convenient interest rates with several deals only available to NRIs.
Quick disbursal
The application process for a personal loan for NRI in India is hassle-free with minimal documentation usually processed within 24 hours of submission. Once processed, the loan amount is quickly transferred to the applicant’s bank account.
Advisory services
Avail of advisory services in the residing country to help you perform better buying decisions and make a sound investment.
No end-use restrictions
There are no end-use restrictions on the NRI loan sanctioned. The NRI loan obtained can be used for any purpose the individual may deem fit, besides participation in illegal activities such as gambling and speculation.Â
Access from anywhere
Talk to advisories, get an unbiased professional opinion, submit your documents online, track application progress, and access funds from any part of the world.
No prepayment charges
Little to no prepayment charges on an NRI loan. Loanz360 offers you deals to escape those pesky charges that have been burdening your loan repayment.
Ease of repayment
An NRI loan can be repaid easily through several available banking channels or NRE/NRO accounts with flexible repayment tenures ranging from 5 years to 10 years, as discussed or applicable.
Types
Type By Security
Secured Loan: Secured loans are loans obtained against collateral or security pledged to access funds.Â
Unsecured Loan: Unsecured loans do not require collateral to avail of a loan depending on several key parameters such as loan amount, creditworthiness, etc.
Type By Collateral
Loan against security: The borrower can submit collateral in Bonds / FD / Insurance / Debentures /equity shares to avail of an NRI loan.
LAP Loan: LAP or Loan against property is another type of collateral scheme where the borrower can submit a property or immovable asset(owned by him/co-applicant) such as a house or land as collateral against the loan acquired.
Loan against deposit: Gold/fixed/recurring deposits/NRE/NRO Term/FCNR can be submitted as a security against the loan.
Loan against shares: Loan Against Shares (LAS) offers a similar criterion as LAP to bring forth instant funds against Demat account shares without selling them.
Note: NRI loan has no end-use restrictions. Simply put, the NRI applicant uses the loan amount obtained for personal, business, or any other expenses as considered appropriate.
Eligibility Criteria
Age: 21 – 68 years (Conditions Apply)
Residential Status: NRI (Non-Resident Indian), PIO (Person of Indian Origin), and OCI (Overseas Citizen of India)
Type of Employment: Salaried/Self-Employed/Business Owner
Collateral: Loan against deposit/security/property/shares
Note: Only collaterals registered with the individual can be pledged. Not applicable to minors.
Co-Applicant: If requested.Â
- Indian residentÂ
- Immediate family member (Parent/Spouse/Guardian/etc)Â
- Earning/Non-earning individualÂ
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Note: The requirement for a co-borrower will vary from bank to bank, lender to lender, and property pledged.
Income: Depends on the lender (Stable income and continual flow of money)
Credit/CIBIL Score: Any profile (Credit score ~ 650 or above has a higher chance of getting a quick and instant loan with high funding at lower interest rates)
Employment Stability:Â
- Salaried: Minimum ~ 2 years of experience with 1-year experience in the current organizationÂ
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Note: The eligibility criteria mentioned above are generic and may vary from lender to lender. Please reach out to us at Loanz360 for a personalized eligibility chart.
Documentation
Applicable to both applicant and co-applicant.
Identity Proof: Passport/Voter ID/Aadhar/Driving License/PAN Card/Work Visa/Visa Card
Address Proof: Passport/Aadhar Card/Resident Permit verified by Indian Embassy
Income Proof:Â
Salaried: Copy of latest 6 months bank account statement/Form 16/ITR/POA Details/Employment Certificate/NRE(or)NRO(FCNR) statements/Last 3 months’ salary slips/Active work permit
Self-employed: Business Proof/ITR/Latest 2 years Profit & Loss Statements/ Copy of latest 6 months current & savings account bank statements/Balance sheet
Additional Requirements: Property-related documents (If applicable)/On-going debt details(If any)/Duly filled application form/Passport sized photographs (2)/Signature proof
If the applicant is submitting the loan application,
From India: Trusteeship or POA (Power of Attorney) provided should be locally validated.
From Abroad: Trusteeship or POA provided by an Indian consulate in the residing country should be legally documented.Â
Charges & Interest Rate
CURRENT PERSONAL LOAN FOR NRI IN INDIA START @ 7.40% P.A ONWARDS. The interest rates are subject to change from bank to bank with parameters such as NRI loan scheme, loan type, income, pledged collateral, etc with capital support up to 75% to 90% of the expense value.
The maximum loan amount on shares is up to 10 crore in funds with monthly repayment schedules spanning over 1 – 30 years. The nature of the loan is an overdraft or term loan depending on the terms of the agreement. The Flexi loan option offers lenders an overdraft limit to utilize funds as they wish and repay only on the funds UTILIZED.Â
We are partnered with leading financiers such as Bajaj Finserv, Aditya Birla, IDBI, SBI, Kotak, IndusInd, Tata Capital, Axis, ISFC, HDFC, and 20 more banks and NBFCs to bring you the best deals on your personal loan for NRI in India with a low or zero fee guarantee.
Note: Our financial partners are not limited to the above-mentioned banks. Contact Loanz360 to discuss options. The interest rates may vary subject to conditions.
FAQ
How do NRIs get the loan amount?
The loan amount is transferred to the NRE or NRO account of the applicant in the Indian rupee or foreign currency as requested and discussed prior to the application process. Contact Loanz360 to discuss your options regarding the mode of the disbursal.
Who qualifies for NRI status?
The NRI status in India is attained by people of Indian descent who reside outside of the country for business or employment purposes for less than 182 days in the previous financial year. Individuals who live outside of India for an uncertain period of time are also eligible for this status.
Who are eligble for NRI home loans?
Besides growing services in wide nations, countries such as the U.K, U.S.A, Australia, New Zealand, Canada, European Countries, Middle Eastern Countries, and a few East Asian Countries such as Thailand, Japan, South Korea, Hong Kong, Malaysia, and Singapore do not face any complications or disturbances when applying for a home loan in India.
Who cannot open NRI accounts?
Citizens of Nepal, Pakistan, Sri Lanka, Iran, Bangladesh, Afghanistan, China, Bhutan, etc are not allowed the right to purchase assets (real estate) in India. For more information visit rbi.org
Can I take another loan if I have an active loan?
The conditions may vary from bank to bank and lender to lender. However, to avail of a personal loan for NRI in India, you should provide your lender with your existing debt information and loan-to-income value upon fulfillment of the set conditions.
Can I apply for the loan with a colleague or friend?
Most banks only accept immediate family members to be applicable as co-borrower or co-applicant to lend a personal for NRI in India. Contact Loanz360 to discuss your options. We have options for every profile and every requirement.
Does NRI need to fill ITR?
As a non-resident Indian, you are required to file an income tax return in India if you have any taxable income in India. This includes, for example, income from investments, property, or business interests in India. If you have any questions about your tax liability, or would like assistance in filing your return, please do not hesitate to contact us. We would be more than happy to help you ensure compliance with India’s tax laws.
What is the repayment tenure on the NRI loan?
On average the repayment tenure on the NRI loan is anywhere between 5 years to 15 years, some extending up to 30 years upon request or under special conditions, varying from bank to bank.
Can I get a joint NRI loan?
Yes. There are even concessions on joint NRI loans at preferential interest rates under certain special conditions. Check with our representation on how you can make the best deals out of your loan. Contact us today.
Can NRI buy property in India?
Yes. You can buy property in India as an NRI or OCI without any special conditions. But you need to file ITR in India if they possess any taxable income in India.
Can NRI claim TDS refunds?
Yes. On any type of income earned in India by NRIs, TDS can be claimed.
How do I use cash when I travel to India?
NRE account is used to withdraw cash in Indian currency. The foreign currency deposited in the NRE account is converted to INR for the NRIs to be able to use funds freely upon traveling back to the country. However, you can also use an NRO account to deposit money if you have any active income in India.
Can I transfer money to my friend’s NRE bank account?
No. You cannot deposit in someone’s NRE account even if it is a family member. But, if you have an NRE account, you can transfer the same directly from your NRE account to his NRE account. The way to deposit is by depositing it in his NRO account with the required documents.
What will happen to my accounts when I return to India?
If you decide to return to India, then the FCNR and NRE accounts should be converted to resident accounts.
Is there any tax exemption on the personal loan for NRI in India?
The tax benefits can be availed on the loan when the applicant files for ITR in India. Depending on the usage of the loan, the usual tax benefits are applied.
