Personal Finance

Personal loans for NRIs: Your full guide

Aman Saxena

12.04.22 (updated more than 1 year ago)

Read time 4 minutes

Personal loans for NRIs can be used for large purchases, home renovations, education, or a dream wedding. Let’s take a closer look at the loans that NRIs have to choose from and the banks that carry them.

In no particular order, here is a list of the top banks in India for NRIs to get a loan:

ICICI Bank

State Bank of India (SBI)

HDFC Bank

Punjab National Bank (PNB)

Axis Bank

South India bank

Kotak Mahindra

Tata Capital

To help you decide which one might be the best for you, here is a handy table:

Provider	Eligibility	Interest Rate (p.a.)	Fees	Loan amount	Loan tenure
ICICI Bank	Must apply with a Resident Indian as co-applicant	Starting from 15.49%	Mention different types of fees and their amounts.	₹10 lakh	3 years
State Bank of India	Must have a NRE, NRO or FCNR (B) deposit	1.00% over the interest rate paid on the deposit used as collateral	1% of loan amount, with a cap off ₹50,000	No limit, based on deposit	Up to the remaining time till maturity
HDFC Bank	Must have a NRE, NRO or FCNR (B) deposit	Starting at 10.25%	Up to 2.50% of the loan amount with a cap at ₹25,000 if you salaried income	70-90% of deposits	Up to the remaining time till maturity
Punjab National Bank	Must be for building, repairing or renovating a flat or home	Starting from 7.50%	0.35% + ₹1350 for documentation charges	₹25 - 50 lakh	No more than 30 years
Axis Bank	For home or commercial real estate	6.75-12%	Up to 1% of the loan amount with a cap at ₹10,000	₹30 - ₹75+ lakh	1-25 years
South Indian Bank	Must apply with a Resident Indian as co-applicant	7.35% - 9.60%	2% of the loan amount	₹1 - ₹10 lakh	1-5 years
Kotak Mahindra	Must be a home or home improvement loan	6.55% - 7.15%	0.5-1% of the loan amount	Upto 80% of the cost of the property or improvements	5-15 years
Tata Capital	Must be a home loan	From 9.00%	Up to 1.50% of the loan amount	₹2 lakh - ₹10 crores	10 years+

How to choose the right personal loan for NRIs

While there are a lot of personal loans out there, not all are available for NRIs. Let’s take a look at them closer.

Type of loan

In most banks in India, you’ll find that NRIs are able to get home loans for purchasing a new home or for renovations to an existing property. The loan amounts are given based on a percentage of the home or renovations costs.

But only a few like ICICI Bank and South Indian Bank actually offer personal loans for other expenses like education, medical, or travel.

Other banks like SBI or HDFC only offer loans against existing NRE or NRO deposits you have at the bank.

So identify what you need the loan for and from there you can look at what is possible with the banks that you have an existing relationship with. Many banks require at least a certain amount of history of an NRE, NRO, or FCNR (B) account before a loan can be offered.

🔖 Read more: Home loans for NRIs

Eligibility

Eligibility can make or break getting a loan. Be sure to read the small print for each loan carefully and make sure you meet all requirements. This can mean having a Resident Indian as a co-applicant or meeting a certain salary requirement.

Repayment

How long are you comfortable with repaying a loan? The pressure of repayment can feel overwhelming, so make sure you have a repayment schedule and interest rate that works for your financial situation. And of course, keep an eye out for additional fees that can accrue when managing your loan.

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Ease of application

It can sometimes be overlooked, but how easy it is to submit an application and manage a loan can help make the process easier. Some banks like SBI will require that you apply in person, while other more digitally native banks will allow you to complete the forms online. Make sure to keep into account the ease of completing an application.

ICICI bank NRI personal loans

Loans can be used for weddings, home renovations and other personal spending Co-applicant must be an Indian resident No security or collateral is required

ICICI provides an easy and simplified method to get an NRI personal loan. But the bank does require that the resident Indian co-applicant is a close relative and the NRI applicant is in India at the time of application. An NRI applicant will also have to show a salary slip and an NRE/NRO bank statement.

SBI NRI personal loans

Loan is made against an NRE, NRO, or FCNR (B) deposit Repayment up to maturity No minimum loan amount

State Bank of India offers NRI a loan against deposits for use in India. It can be used for business purposes, purchasing a house or flat, or due to an emergency situation. Only a loan against an FCNR (B) is possible to open from an overseas SBI office and in a foreign currency.

HDFC Bank NRI personal loans

Borrow up to 70-90% of deposit amount Easy online application Interest-only payment until repayment

HDFC lets NRIs borrow against their NRE, NRO, and FNCR (B) deposits in times of need or emergency. If you are looking for a loan for a home purchase in India, HDFC has a separate home loan for NRIs.

PNB NRI personal loans

Loan only for a flat or house Can be held by a PIO Repayment through an NRE, FCNR(B), or NRO account in India

PNB offers personal housing loans to NRIs for purchasing, renovating, or repairing a flat or home in India. The loan is required to be used for a flat or home that the account holder is occupying or putting on rent, and not for a real estate business.

Axis Bank personal loans

Loans for home or commercial real estate Unique option for NRI entrepreneurs Income and overseas stay requirement

Axis bank offers NRI loans for home or investment property purchases. Axis bank has an easy-to-use application process and you can be approved in 5 days. There is an income requirement of $3,000 USD per month and a minimum tenure abroad of 2 years to qualify.

South Indian Bank NRI personal loans

Can be used for education, travel, medical or asset purchases No security or collateral is required Prepayment charges apply

South Indian Bank offers their regular resident personal loans to NRIs, but there are differences in eligibility amounts versus residents. NRIs are also required to show 12 months of an NRE account and have a Resident Indian as a co-applicant on the account.

Kotak Mahindra NRI personal loans

2 home-focused loans available Co-applicant is not required Insurance options available

Kotak Mahindra is offering an NRI home loan and an NRI home improvement loan for first-time homebuyers or those looking to update a family home. Both types are suited for NRIs and eligibility is based on income requirements from overseas earnings.

Tata Capital NRI personal loans

Only for home purchases Easy to apply online Attractive interest rates and tenure

Tata Capital is a go-to for loans in India but only offers loans on homes for NRIs. The benefit of Tata Capital is that NRIs do get attractive rates, a flexible EMI option, and customizable tenure on their loans.

Sources used for this article:

All sources checked as of 30 March, 2022

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