A financial emergency can strike at any time even if you happen to be an NRI, be it in India or the country of your residence. In such scenarios, it is ideal to go for personal loans. However, it is very tough for expats to get loans in foreign countries but they can avail of the same in India. There are many banks in the country offering personal loans to NRIs and some NBFCs also provide the same due to the attractive incomes of Indians residing abroad.
What Is A Personal Loan?
It happens to be unrestrictive financial assistance that could be utilised for anything from footing medical or utility bills to paying off your creditors. Of course, NRIs have to pay back the loan in time as well.
Benefits Of NRI Personal Loans
Now, Get It Without Any Hassle
Previously, personal loan processing used to take a lot of time due to the extensive procedures involved in the same. And, the documentation requirements were also heavy-duty. But certain banks and NBFCs these days provide loans in a matter of a few hours through the website or mobile applications. Also, these days even the documents needed for the same happen to be minimal.
Use For Anything
The personal loans NRI avail of can be utilized for anything, buying an asset or paying off debts. They will not be inconvenienced by any kind of queries. However, as a note of caution, the amount cannot be used for gambling or any other unlawful activities.
Get Loan & Payback In Any Currency
The NRI personal loans are offered in either Indian or a foreign currency of the choice of the clients. Many lenders provide loans in chief currencies such as USD, GBP, EUR, AED, HKD, SGD and SAR. Even the EMIs can be paid in the currency in which an NRI has availed of the loan.
Don’t Require Collaterals
The credit history of an individual is defined by the person’s CIBIL or CRIF scores, which are based on previous loan repayment patterns. Also, a high-salaried job or a flourishing business can aid you in disbursal of loan amount quickly. Certain banks or lenders might offer loans in case you have a very good term deposit with the banks. In such a scenario, you can easily avail of a loan against the deposit without liquidating it.
Four Vital Things To Consider Before NRIs Opt For Personal Loans
- In case you are taking the loan in the currency of your resident country, you might be able to spare yourself the charges of forex conversion but end up paying an extra processing amount. This can be disadvantageous for NRIs while paying back the
- amount
- Understand critical aspects, such as processing charges, late payment charges and forex conversion charges, thoroughly
- Utilize personal loans only for extremely important matters and not for ostentatious affairs
- The interest rate can be steeper than secured loans. So, for needs such as home extension or repairs, opt for a home loan
