NRI Personal Loan

Many of the Indian citizens work in other countries for short periods of time or some work for longer tenures as well. These individuals are referred to as Non-Resident Indians. As these individuals do not have permanent residency or citizenship of the country they are residing in, availing loans for any reason gets difficult. Or there may be a requirement of some extra cash for your loved ones who reside in India. In all these cases, an NRI personal loan may prove useful. Let’s see how an NRI can get a personal loan here in India along with the eligibility conditions and documentation required for the same.

Some of the common features of NRI Personal Loans are:
  • The loan needs a co-applicant who needs to be a Resident Indian
  • The resident Indian may be earning or non-earning member
  • Some banks where co-application is not required may require an asset to be rendered as collateral

ICICI Bank is one of the banks that offer personal loans to NRIs. Some of the features of the loan are:

  • The upper limit of loan up to ₹ 10 lakh
  • Documentation is simple
  • Interest rates start from 15.49% p.a.*
  • Applicant to be a resident Indian and the co-applicant NRI to be a close relative
  • Tenure up to 36 months
  • Quick processing and disbursal

South India Bank also provides personal loans to its NRI customers. Some of the features of the loan are:

  • The Loan can be used for personal purposes like education, travel or the self-employed can use it for setting up a new business or for business expansion.
  • The maximum loan amount is Rs 10 lakhs
  • The upper tenure of the loan is 5 years
  • For NRI’s- Based on average monthly remittance to own NRE account or to any resident account of spouse during the last 12 month excluding bulk remittances
  • For NRI’s, one local co-applicant is required (Earning/Non earning)
  • The interest rate for the SIB NRI Personal Loan is linked to the Repo Rate of RBI. It can range between Repo Rate +6.60% to Repo Rate +9.10% (Based on Bureau score)

State Bank of India allows loans for NRIs against deposits maintained by the individual. Features of the loan are:

  • The loan can be taken to carry any business activities, for acquiring a flat / house in India or for meeting emergency financial requirements.
  • The loan is available in Indian Rupees or Foreign Currency against the security of NRE / NRO / FCNR (B) deposit
  • Only the depositor is allowed to avail the loan
  • Interest is charged at monthly intervals in both Indian Rupee and Foreign Currency loan
  • Premature withdrawal of underlying :
    • NRE / FCNR deposit is not permissible
    • NRO deposit is permissible but outstanding Principal and Interest will be settled first
  • The rate of interest on NRE and NRE deposits is 1% over the Rate of Interest paid on FD. For FCNR Deposits, the interest rate is 2.9% over the MLCR Rate (MLCR stands at 7.90% currently).

HDFC Bank allows overdraft against Fixed Deposits for NRIs which can be used as a personal loan. Some of the features of the loan are:

  • Instead of liquidating your NRE, NRO or FCNR deposits in times of needs, you could borrow against them as an overdraft
  • Draw as much as you need, and pay interest only on the drawn amount till you repay.
  • Your deposits continue to earn interest.
  • The maximum amount of loan availed against different kinds of deposits are
    • NRE Deposit - 90% of the deposit amount
    • NRO Deposit - 90% of the deposit amount
    • FCNR Deposit - 70% of the deposit amount
  • The deposit cannot be closed prematurely if there is an outstanding overdraft.
  • Passport copy
  • Visa copy
  • Bank statement
  • Official e-mail ID or HR e-mail ID
  • Salary slip or salary certificate
  • NRE/ NRO bank statement for 6 months

If there is a requirement of co-applicant for the loan, then documents like ID proof, address, and income proof may be required for the co-applicant as well.


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