People often leave their home nation for career growth, better opportunities, or family responsibilities. If you have recently moved to India with a cheap flight ticket from Canada to India and need immediate financial help, securing a loan from local banks can be lengthy. So, flyopedia is here to assist you with NRI Personal loans. But, first of all, we have to understand what NRI Personal Loan is.
What is an NRI Personal Loan?
When you fly with cheap business class tickets to India, you should know that an NRI personal loan is available from various banks in India to meet your personal needs such as travel, medical emergencies, and home renovations. When you have financial urgency, personal loans offer essential financial flexibility. You do not need to use your funds to cover expenses. You can obtain a personal loan from any bank of your choice within a few business days. However, repayments must be made in easy EMIs over an extended repayment period.
These features make personal loans an ideal credit tool for NRIs during financial crises. These versatile loans can be used for various purposes without needing the lender’s approval for how you use the funds.
NRI Personal Loan Features:
NRI personal loans typically include the following features:
- The NRI personal loan requires a co-applicant, who must be an Indian resident. The loan amount can range from 10 lakh to 30 lakh.
- The Indian resident co-applicant can be either an earning or non-earning member.
- Some lenders, who do not require a co-applicant, may ask for an asset to be pledged as collateral.
- Interest rates for NRI personal loans are typically higher than those for non-NRI personal loans.
- The application process for NRI personal loans is quick and easy, similar to regular personal loans.
- These are multipurpose loans, meaning you can use them for various needs as an NRI.
- The personal loan is also credited to your account in your preferred currency.
Different Types of NRI Personal Loans
There are two sorts of NRI personal loans available in India:-
1. Secured Personal Loan
A secured NRI personal loan requires collateral. This loan is available to all family members, co-applicants, and guarantors. If the loan amount is high or the borrower’s credit history is unknown, the lender can ask for collateral.
2. Unsecured Personal Financing
Unlike secured personal loans, unsecured NRI personal loans do not require collateral. However, interest rates for these loans are higher due to the increased risk for lenders. Banks also assess the borrower’s repayment capacity before extending an unsecured loan.
Eligibility And Required Documents for NRI Personal Loan
if you are worried about which type of visa you require, then we have A Comprehensive Guide to NRI Visa Types. Here are the eligibility criteria used by most Indian financial institutions to determine whether an NRI is eligible for a Personal Loan.
1. Employed Professionals
Obtaining an NRI Personal Loan is straightforward for employed individuals in the country of employment. You must have held your current position for a minimum of one year, supported by relevant documentation.
2. Self-Employed Individuals
For those with businesses overseas, continuity of business operations for at least three years is required. Additionally, owning property in India significantly improves the chances of loan approval.
3. Income Requirements
Income criteria are crucial as lenders prefer borrowers with a stable income history. The lender expects this trend to continue in the future. Minimum income requirements for loan approval vary based on the applied amount and the borrower’s country of employment.
4. Co-Applicant
When applying for an NRI Personal Loan, lenders typically request a local co-applicant, often a close relative. The co-applicant’s signature is required on the loan agreement, along with the submission of identity and address documents for verification.
Final Thoughts
If you’re an Indian residing abroad and require quick funds, consider applying for instant personal loans in your home country, India. The process is straightforward with proper documentation, but ensure you can repay. Both secured and unsecured personal loans are accessible to NRIs through numerous banks. A strong professional background and a high credit score can help secure personal loans at favourable interest rates. Lastly, if you are travelling in a hurry then you should book last minute flight to India from Canada through flyopedia.
