I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See all posts Frank GogolEverything You Need to Know about NRI Personal Loans in the U.S.
Updated on April 9, 2024
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Living in the U.S. on a visa offers great benefits like work opportunities and a good quality of life. But, being a non-resident Indian (NRI) has its challenges. How can you finance important things back home in India? What financial tools can you use to help finance your needs?
Below we take a look at an NRI personal loan and how it can you help with any of your personal financial needs.
What is an NRI?
Non-resident Indians (NRI’s) are citizens of India living abroad on visas or passports. They can live in any country other than India and will be classified as NRI if they are outside of India for 182 days in a year. NRI’s don’t pay tax in India but in the country of their current stay.
Are There Personal Loans for NRIs in the U.S.?
Bing a visa holder in the U.S. can cause difficulty if you are looking to get credit. But, there are lenders who are willing to provide NRI personal loans. Let’s take a look at the different options out there.
Traditional Banks
Traditional lenders like banks have strict requirements for loan applicants. A bank often requires minimum credit scores, citizenship and other criteria that someone like yourself just can’t meet. Internationals like yourself, therefore, usually have to look for other options.
An NRI personal loan will be possible with a bank if you can meet the minimum requirements. Banks have the benefit of offering low interest rates. But, when you can’t qualify for
Credit Unions
Credit unions exist to serve specific groups of people. Each credit union serves a different type of person with a specific demographic profile. Importantly, they only serve their own members. These credit unions make use of a limited pool of money and generally, they have interest rates that are higher than that of regular banks.
It can be very hard for internationals like yourself to get into a credit union in the U.S. You might not meet the eligibility criteria and, therefore, will need to look for another type of loan.
Online Lenders
Online lenders aren’t like traditional banks. They offer to help people who have not been able to access credit in the past. Internationals like yourself who are in the U.S. on a visa can be eligible for an NRI personal loan with an online lender.
The minimum requirements with online lenders are much easier to fulfill than with traditional banks. Some online lenders don’t even require a minimum credit score or a cosigner. Unlike credit unions, online lenders will offer competitive interest rates to loan applicants.
So the good news is you can get an NRI personal loan while you are in the U.S.
6 Reasons an NRI Might Need a Personal Loan
Personal
1. To Buy Property in India
Buying property has many benefits. Not only is it in an investment, but you’ll also have a place to retire to if you buy a house back home in India. Owning a property in India can help boost your financial wealth. A property can serve as security if you apply for
Your property can also be rented out to tenants which means you can make extra income. So, buying property in India with your NRI personal loan could be a great idea.
2. To Renovate a Home in India
Perhaps you already own a family home in India. You might need some extra cash to help renovate the house.
Whether you want to redo the kitchen or build another room, an NRI personal loan for home remodelling can help to turn the house you own into the home you want. Renovating a house also increases its value. So using your NRI personal loan for this purpose can help to increase the selling price of your property.
3. To Pay for a Wedding in India
Weddings are exciting and beautiful events. Whether you are a parent or the couple getting married, you want to make sure your loved ones and guests experience the best possible wedding. Unfortunately, this will cost some money. And paying for a wedding requires lots of upfront deposits. You can pay for a wedding with your NRI personal loan, even if it is in India. So there is no reason to not make the day the fairytale it’s destined to be.
4. To Refinance a Loan in India
Refinancing a loan in India can be difficult, especially if you are looking at using another Indian loan. A good option for you could be to use your NRI personal loan in the U.S. to refinance a loan back home. The way your existing loan will be repaid back home will depend on your unique situation. It might be in form of a balance transfer or you might have to repay it physically with a lump sum.
Either way, an NRI personal loan can help to refinance your loan back home and help you save money in the long run.
5. To Pay for Funeral Costs in India
Organizing the celebration of a deceased loved one’s life takes care and effort. A funeral also usually comes with quite a few expenses that have to be paid. Consider getting a personal loan to pay for a funeral to ease the financial stress during your difficult time.
6. To Cover Medical Expenses in India
Many NRI’s have family members back home who need medical treatments. Or, you might have a large medical bill in India you need to settle. A personal loan for medical expenses can help you to cover these bills in India. Interest rates in the U.S. have a good chance of being cheaper than the penalties and interest rates of medical bills in India, so use your NRI personal loan to take care of that debt.
How to Get a Personal Loan as an NRI in the U.S.
You can apply for an NRI personal loan with Stilt. Here’s how it works.
Apply
With Stilt, can apply online for the loan amount you want. Read through Stilt’s eligibility criteria and get all your documentation and information ready. Make sure you submit all relevant information as a stronger application will lead to better loan offers.
Get Approved
You will receive feedback from Stilt within 24 hours of your application. If they need more information they will also schedule a quick verification call. Supply any final information that is required to get approved. Once Stilt has ticked all the boxes, you will receive a loan offer and a promissory note. Sign and return that note if you want to accept the loan.
Start Repayment
The loan amount will reflect in your U.S. bank account within 2-3 business days after Stilt has received the signed promissory note. Now all that is left to do is to set up your repayment method online. You can set up autopay which will help you to pay the monthly amount on time every time, as it automatically deducts your monthly repayment from your account. This is essential as it can help you to build good credit.
Getting a personal loan with Stilt as a non-resident Indian is that simple!
Personal Loans
for NRIs in the U.S.!
Loans for up to $25,000. No cosigner required. No prepayment penalty.
Conclusion
NRI personal
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.