There is a variety of personal loans that NRIs can get from banks in India. Major Banks are offering fantastic interest rates and tempting deals that will save you more money.
So, if you are a NRI planning to take a personal loan from a bank in India, make sure that you choose the best personal loan which offers you the best re-payment method of your loan.
Things to know for NRI before taking a personal loan in India:
Reputed name: There are a large number of lenders who provide attractive offers and it can be confusing to choose the best one out of them. You should remember to sift through the long list and pick the lender who has a good reputation.
Consider your needs: When you are applying for a personal loan, make sure that you know exactly what you need the money for. The usage of the loan money needs to be carefully planned in advance. It also important to consider the total amount that has to be paid back along with interest.
Never go for the maximum amount: It will be tempting if the lender offers you an attractive amount of money for a personal buy. However, you should always remember that it is best to choose the amount that you exactly need. It will make re-payment easier.
Always be clear: It is important to be clear about all the terms and conditions of the loan you are applying for. A solid plan is best, if you are planning to apply for a personal loan.
Have a Plan B: Unexpected situations can arise any moment and that is why it is crucial for you to always have a Plan B for re-payment of the loan.
Take one loan at a time: Many times, people make the mistake of taking multiple loans. This causes problems when the time for repayment is due, so always avoid taking more than one loan.
Now that you know the things you need to keep in mind when you are taking a personal loan, here is a list of the top 5 personal loan offers for NRIs:
Citibank: The amount of money that you can apply from this bank is Rs. 1, 00, 000 to Rs. 15, 00, 000. The interest rate is 14.5 per cent to 18 per cent. The processing fee is 1.5 per cent to 2 per cent of the loan amount. The tenure is 1 to 5 years. The pre-closure charge is 3 per cent of the outstanding amount.
HDFC: This bank offers personal loans from Rs. 50, 000 to Rs. 15, 00, 000. The interest rate is 14.25 to 22 per cent. The processing fee is 2 to 2.5 per cent of the loan amount. The duration is 1 to 5 years. The pre-closure charge is 3 per cent of the outstanding amount.
Standard Chartered Bank: The loan amount that you can take is Rs. 50, 000 to Rs. 15, 00, 000. The interest rate is 14 to 21 per cent. The processing fee is 1.5 to 2 per cent. The tenure is 1 to 5 years. The pre-closure charge is 4 per cent.
TATA Capital: This bank offers personal loans from Rs. 75, 000 to Rs. 15, 00, 000. The interest rate is 15.25 to 26.50 per cent. The processing fee is 1.5 to 2 per cent of the loan amount. The tenure is 1 to 4 years and the pre-closure charge is 4 per cent.
Axis Bank: Personal loans of Rs. 1, 00, 000 to Rs. 15, 00, 000 are offered by this bank. The interest rate is 14.25 per cent to 22 per cent. The processing fee is 1.5 to 2 per cent. The tenure is 1 to 5 years and for the pre-closure amount, partial payment is permitted.
India is progressing fast and this is the reason why NRIs can get the best personal loans at great interest rates at the moment. If you are considering taking a personal loan in the country, there is no better time than now. Consider all your options well and opt for the loan that will serve you best when it is time for re-payment.
South Indian Bank : 50% of the average annual remittance to their NRI account /spouse’s domestic account (excluding bulk remittance) subject to a maximum loan of Rs. 3.00 lacs.
Mode of Disbursement: By credit to NRO account only .
Security deposit: (a) for doctors (as mentioned earlier) and (b) SB account holders whose salary is credited to the account : Guaranty optional.
For persons going abroad on employment Up to Rs. 1.00 lac – one guarantor. Above Rs.1.00 lac – Property / acceptable collateral security for 125% of loan amount.
For others- at least one guarantor having NW not less than thrice the loan amount.
If you are looking for car loans, here is an article on top car loan offers from Indian banks.