NRI Loan

An NRI Loan is a loan offered to an NRI (Non-resident Indian). There are special types of loan schemes tailored to fulfill the requirements of Non-resident Indians.

What is an NRI Loan?

An NRI loan is a type of bank loan that the NRIs (Non-resident Indians) use for different purposes. The Foreign Exchange Regulation Act, 1973 identifies the NRIs. Every bank and financial institution in India complies with the Reserve Bank of India guidelines to define an NRI.The definition of an NRI according to the RBI is as follows: “An Indian citizen who holds valid documents like Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI.”

What is the purpose of an NRI loan?

An NRI Loan serves various purposes of the Non-resident Indians. They can build or buy a house or purchase a plot for building a house in India for self-occupation when they come back to the country. An NRI loan can also be used for higher education, marriage expenses, home renovation and other purposes.

Eligibility for getting NRI loans

Nearly all major banks in India offer NRI loans. However, there are certain requirements that need to be fulfilled.

The loan applicants have to furnish the appropriate documents to the banks to ascertain their eligibility for the loan. Documents like proof of income and a valid passport have to be furnished with the bank. One significant prerequisite for the sanctioning of an NRI loan is that the borrower should have a bachelor’s degree with at least 21 years of age. In addition, as per the rules and regulations of the Reserve Bank of India, the NRI loan applicants should possess their own properties in India. Close relatives and spouses of Non-resident Indians can also qualify for NRI loans. The NRI should be working overseas for at least 3 years without break and the account relationship should be of minimum one year. Therefore, even if you’re staying away from India right now, the formalities can be completed online and you can qualify for an NRI loan.

Types of NRI loans

Given below are the different types of NRI loans that are offered to NRIs and the relatives of NRIs:

1. Car loan
2. Housing loan
3. Education loan
4. Mortgage loan
5. Overdrafts

Benefits offered by NRI loans

Given below are the important benefits offered by NRI loans:

1. Online application facility
2. Online monitoring of loan application status
3. You can select from floating or fixed interest rates
4. Affordable interest rates
5. Prepayment facility
6. Personal accidental insurance coverage

Repayment plans of NRI loans

You can pay off an NRI loan in the following ways:

1. Flexible Loan installments Plan
2. Step Up Repayment Facility
3. Accelerated Repayment Scheme
4. Tranche Based EMI

Banks offering NRI loans

Given below are the names of the prominent banks that offer NRI loans:

1. State Bank of Travancore
2. UCO Bank
3. Indian Overseas Bank
4. ICICI Bank
5. Sundaram Finance
6. HDFC Bank
7. Citibank

No matter in which place of the world you are, you can always go for an NRI loan to own a home in India.