Best Bank to Get NRI Loan in India


This article helps you to find the best bank to get NRI loan in India and also helps you to find the important factors to be considered while applying for NRI Loan in India.

NRI Loans help the NRIs to achieve their financial goals for any kind of purpose. Apart from the regular personal loans that can be taken by the NRIs there are lot of other loan types such as Home Loans, Property Loans, Car Loans, and Education Loans etc that can be obtained against a deposit as well as without one. With the trend of lots of people living abroad for different purposes, the banking policies for the NRIs have also changed over the course of time especially for NRI loan. There are number of banks in india that provide different kinds of NRI Bank Loans but finding the best bank to get NRI loan is a daunting task. Browsing lots of banks' websites and going through their policies for NRI Loan requires a lot of patience and effort.

Best Bank to Get NRI Loan in India

Hence, we have compiled a list of the top 5 banks that you can choose for NRI Bank Loans without any hiccup.

How to choose the Best Bank to get NRI Loan in India


Finding the best bank to get NRI loan in India is really tough. Apart from the browsing efforts, you have to spend a lot of time in comparing the rate of interests at various banks on various loans. Attaching a collateral or not; pre-payment policies; loan tenure and lots of other factors make it a tough decision.

The main things you should look while choosing a bank for NRI Loan are as follows

  • Rate of interest for NRI Loans (All kinds)

  • Penalty on Pre-Payment of the NRI loan amount

  • Rewards and Points etc for keeping the instalments regular

  • Collateral or deposit requirement for the NRI loans

  • Paper work involved while applying for NRI loans

  • Physical presence for banking

  • NRI Loan Tenure

  • Processing Fees included in NRI loans

  • Marginal Cost of Fund based Lending Rate (MCLR policies)

  • Markup and Credit Profile


Eligibility to Get NRI Loans



There are different norms of NRI Loan Eligibility in different banks. The ones that are most common are as follows:

  • Minimum Income Requirement (Different for different countries) for NRI loan eligibility

  • Work Experience (different tenure for work at abroad and at home country) required for NRI loan eligibility

  • Minimum Age Requirement for NRI Loan Eligibility is around 24 years

  • Maximum Age Requirement is set for the retirement age or 60 years of age (earlier one)

  • Residential Status in the foreign country (Different for self-employed and salaried NRIs)


Top 5 best bank to get NRI Loans



  • South Indian Bank



NRI Loans are available for property, education, home, car, personal loan and in the SIB Décor (purchase of electronic goods, white goods, household articles etc) categories. Maximum NRI loan amount is 25 lacs, tenure is 5 years, Processing is very easy and fee is nominal 2% of the NRI loan amount. The NRI bank loan policies are customer oriented, Paper work is not exhaustive for NRI loan and NRIs don't have to be physically present. 0.1% relaxation in the rate of interest is given to the women borrowers.

  • Citibank

  • The NRI Bank Loans can be taken for lots of purposes. The rates of interest for NRI loans vary from 14.5% to 18%. The processing fee for NRI loan is from 1.5% to 2% of the loan amount. Loan tenure is of 5 years and pre-payment charge is around 2% of the outstanding amount.

  • Standard Chartered Bank

  • The rate of interest for NRI loan is from 14% to 21%. Processing fee is 1.5 to 2% of the loan amount and tenure is 5 years. Pre-payment charges are 3% of the outstanding amount.

  • HDFC Bank

  • Rate of interest for NRI loan is 14.25% to 22% and the processing fee is 2 to 2.5% of the loan amount. Pre-payment charges are 3%.

  • TATA Capital

  • Rate of interest for NRI loan 15.25 to 26.50% and the processing fee is 1.5 to 2%. Tenure is 4 years and the pre-payment charges are 4%.

    Having gone through the policies of the different banks, it is clear that the South Indian Bank is the best bank to get NRI Loans. Visit the official website to get more details of NRI loan.


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    Comments

    Author: Natarajan18 Apr 2018 Member Level: Diamond   Points : 8

    Many NRIs would have taxable income in India. If they do have, depending on the tax applicable, they can avail a home loan and then adjust its tax benefits against the potential tax that they have to pay.

    The other potential benefit would be to consider the traditional way of NRIs earning in dollars or international currency and then buying property upfront. Instead, they can buy a home in India with an NRI loan when the Indian rupee is weak against the dirham or dollar and save up on the stronger foreign currency in which they earn.

    ICICI bank offers an attractive package, the interest rate is around 9% (higher for non-home purchase purposes), processing fee of 0.5% with GST and surcharge tax. Up to a maximum of 80% of the proposed home cost can be availed as a loan. Part pre-payment of the loan amount is at zero cost but full repayment attracts a 2% pre-closure charge.

    NRIs should remember that such loans cannot be used to buy farms that are on agricultural land or proper agricultural properties. The NRI should be cautious while repatriating money in excess of the property's original, it is better to discuss with the tax authorities.

    Author: K Mohan03 May 2018 Member Level: Platinum   Points : 3

    What I feel is that most of the banks that include Nationalized and private banks give a red carpet welcome to the NRIs while coming to giving lavish loans. But it is invariably noticed that NRIs earned good money outside India and they are now coming back to the country to replenish their earnings by setting up an industry or institution and for that money or investment won't be a problem. What they want is the land to set up such industries or institutions as they cannot invest in real estate to acquire land and in that regard, governments should come forward to give the land free of cost.

    Author: Umesh03 May 2018 Member Level: Diamond   Points : 4

    This is a nice article explaining the various aspects of NRI loans by banks in India.

    In my opinion, NRI persons are generally well paid and can manage to purchase the house or any household item without taking a loan. Taking a loan at such high rates 14-25% does not make a sense until unless it is inevitable. Why I am telling this is because for a tenure of 5 years if an NRI takes a loan of 10 lac then he will have to pay almost 10 lacs or even more as interest only and as well he has to repay the principal amount.

    So one should work out one's financials properly before going for these costly loans.



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