Can an NRI Take Personal Loan in India?

Yes, NRI’s can take personal loans in India. The NRI personal loans are accessible from various banks in India. No matter what purpose is the loan offer, there are many prominent banks that offer personal loans to NRIs against fixed deposits while private part banks give NRI personal loans that might be unbound. In fact, the personal loans for NRIs are a decent alternative to get speedy financing for diverse prerequisites.

The NRI personal loans are intended to help Indians who are living abroad to profit from the advantages of a personal loan in India. Some of the most famous banks which provide loans for NRI are State Bank of India, HDFC Bank, ICICI Bank, Canara Bank, Axis Bank, Standard Chartered Bank, Citibank, etc.

1. Eligibility: 

  • There are some requirements an NRI is supposed to meet in order to qualify the process of getting a loan. They are:
  • The applicant applying for the loan should be a citizen of India.
  • The applicant must also be at least 21 years of age.
  • It is important for the applicant to be a professional with a consistent salary or to run a business and be self employed.
  • The salary or the income of the applicant should be enough to qualify for the loan.
  • A number of documents which are required to be submitted as a formality.

In addition to all these things, it is possible that there may be some additional criteria dependent on the bank rules. The best to gain a better understanding of all the prerequisites is to go through the website of the bank you’ve chosen and be clear about everything that is required to get a personal loan.

2. Documentation: 

  • Coming to the documents required for NRI loans, the process is pretty simple to get any other personal loan. Salary details and KYC details need to be shown while applying for a loan. If a person is an NRI then reports which affirm the residential status are also important. Other important things are a passport and a VISA of the country the candidate is living in currently. In addition to all these documents, some other important documents are:
  • A photocopy of passport and VISA of the candidate. 
  • A certificate of salary determining the name, date of joining, designation and compensation details in English. 
  • Bank statements of both domestic and International banks throughout the previous half year. 
  • In the event that the candidate isn’t accessible in India when the application of loan is submitted, at that point a General Power of Attorney should properly bore witness from the Indian office of the NRI’s occupant nation. In the event that the candidate is available in India, the Power of Attorney can be privately legally approved. 
  • A duplicate copy of the appointment letter of NRI just as the contract.

You might be required to present some extra documents, so the best approach is to recheck the formalities of the bank that you have chosen for a personal loan.

3. Personal loans for NRIs: 


There are many banks in India that offer both rupee and foreign currency personal loans to NRIs who have FCNR or NRE term accounts. These personal loans are accessible against the sum in the FCNR or NRE accounts at highly competitive international rates. The loans are usually accessible up to 90% of the sum in the account with each bank having its own maximum limit on personal loan amounts.

4. Some highlights of personal loans are: 

  • The NRI loans have a wide scope of highlights as talked about below:
  • The NRI loans are actually accessible for a higher amount of money. 
  • The rates of interest involved in these loans are pretty competitive.
  • Time frame involved in the reimbursement of these loans ranges between one year to as long as five years.
  • An NRI can get a loan to fulfill almost any purpose.

5. Advantages of NRI loans:

  • The NRI personal loans offer many advantages of quick financing and many other things, for example,
  • Simple financing for individual credit prerequisites. 
  • The loans can be obtained from many other banks of your choice. Each bank has its own rules and advantages.
  • Extremely simple documentation and the application process. 
  • Bother free and quick preparing of all the important applications. 
  • The loans are accessible for both the salaried employees and people who are self employed.

This is a guest post by Shipra Aggarwal