Emergencies have a tendency to show up unannounced. No matter where you are, financial crisis can arrive in the blink of an eye. During such times, a personal loan can offer a source of financial assistance. It’s an easy line of credit that can provide anyone with financial support in dire situations. Moreover, NRIs can also obtain personal loans in India as well. Keep reading to learn about personal loans in India for NRI from Shriram Finance.
Key Highlights
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What is a Personal Loan for NRIs?
A personal loan for NRI in India is an unsecured loan that can used for any financial requirement. Unlike most other loans that are strictly earmarked for specific purposes, personal loans offer a lot of flexibility.
The borrower can use it for various purposes like education, medical emergencies, weddings, home renovations, debt consolidation and more.
Over the years, the process of applying for a personal loan in India for NRI has become much simpler and straightforward. Borrowers can now complete the process from the comfort of their home country or from abroad, depending on the lender's policies.
The interest rates may vary depending on the lender's policies and the borrower's creditworthiness. If the borrower has a good credit score, they usually get a personal loan at a competitive interest rate.
NRI Personal Loan Eligibility
The eligibility criteria for personal loan for NRI differs from one lending institution to another in India. Shriram Personal Loan, for instance, has the following eligibility criteria.
- Age: The borrower should be between the ages of 21 and 60 at the time of loan maturity.
- Employment Status: The borrower should be employed or self-employed. In other words, they should have a consistent source of income to repay the loan.
What Documents Are Required for NRI Personal Loans?
The list of documents required varies across the lending institutions. And it can also vary with different borrowers. There are three main types of documents required for a personal loan in India for NRI.
- Proof of Identity: Aadhaar card, passport or other identity documents, along with your valid visa or OCI card.
- Proof of Address: Required to submit your overseas address proof, such as utility bills, rental agreements or bank statements, to establish your residency status. Apart from that, you may also require an Aadhaar card to verify your address in India.
- Other documents: This list can vary depending on the specific case. Generally, you might be asked to provide proof of income, bank statements, ITR returns and a cancelled cheque. The lender can also ask for additional documents based on their discretion.
Things to Consider Before Applying for Shriram Personal Loans for NRI
Before applying for a personal loan, there are a few things that you should keep in mind.
- Interest Rates: Personal loans come with a higher interest rate as compared to secured loans. The borrower can, however, follow some best practices to ensure that they get the lower interest rates. One option is to maintain a credit score to show their creditworthiness.
- Processing Fees: Lenders may charge a processing fee to process the loan application. This amount will be stated clearly, along with the other terms and conditions of the loan. The borrower can discuss this with the lender beforehand and factor it into the total cost of the loan.
- Prepayment/Foreclosure Charges: In some cases, the borrower might have to pay a prepayment fee if they want to repay the loan before the due date. One should check the prepayment charges before applying for a personal loan in India for NRI.
- Loan Tenure: Personal loans offer flexible tenures. You can generally choose between tenures ranging from 1 year to 5 years. Please remember that a longer loan tenure may result in lower EMI but higher interest costs, while a shorter loan tenure may result in higher EMI but lower interest costs.
- Loan Amount: When offered a flexible line of credit, it can be tempting to take more. However, you will have to repay this money with interest. In this regard, you should only borrow to meet your needs and not more.
How to Apply for a Personal Loan in India for NRI
Applying for a personal loan has become straightforward over the years. Gone are the days when you would have to go down to the bank and wait for hours. Now, the borrower can complete the entire process from home within a few minutes!
Shriram Finance, for instance, offers an easy three-step application process.
Step 1: The borrower needs to register with the mobile number and verify the personal details and bank details.
Step 2: Choose the details of the personal loan. You can select the amount and the loan tenure. Fill out the application form along with the required documents and submit it for verification.
Step 3: Upon approval of the application, the loan amount gets disbursed and credited to the borrower’s bank account.
Getting a personal loan in India for NRI is easyand involves minimal documentation. The borrower does not even need to step out of their home and can complete the application within minutes.
During emergencies, every second counts and having access to funds can be a lifesaver. Shriram Personal Loan understands this and can be the beacon of hope on a gloomy day. But don't just take our word for it, experience the peace of mind that comes with having financial support when you need it the most. Check out Shriram Personal Loan today to get started.
Frequently Asked Questions
1. How much loan can an NRI get in India?
The amount, in this case, will depend upon the lender. Shriram Personal Loan, for instance, offers collateral-free credit up to ₹15 lakhs. In other cases, you might be able to get even more, depending upon the lender’s discretion.
2. Is credit score applicable for NRI?
Yes, your credit score always impacts the approval of your loan application. It is used as an indicator of whether you are creditworthy or not. A high credit score indicates to lenders that you will be able to pay your EMIs on time. As a result, your chances of getting a loan will increase.
3. Are there any restrictions on how the money is spent?
No, this is one of the most significant advantages of a personal loan. The borrowers can utilise the funds for any purpose. Unlike other kinds of loans where the money is earmarked for a specific purpose, a personal loan in India for NRI offers much flexibility.
