Is an NRI in Manila, Philippines eligible to get a home loan or personal loan? Every year a lot of Indians immigrate to different countries in search of good job opportunities, studies, business opportunities, etc. Many people doubt that, after moving to other countries whether they will be eligible to apply for a home loan or personal loan in India as Non-Resident Indians (NRIs). If you are an NRI and wondering about the same thing, then you would be happy to know that you are as eligible as an Non resident Indian or NRI to apply for a home loan or personal loan in India. If you are an NRI in Manila, Philippines, you can apply for a Non-Resident Indian home loan. A Non-Resident Indian loan is a type of home loan for buying property in India or personal loan, and it is offered to Non-Resident Indians, to meet their various expenses like financial emergencies, medical expenses, travel, debt consolidation, home renovation, etc.
Being an NRI in Manila, Philippines, you can apply for an NRI home loan or NRI personal loan and then easily repay it in Equated Monthly Instalments known as EMI. The interest rate and tenure of the NRI home loan or NRI personal loan differ from other loans, meant for resident Indians. Besides this, the interest rate will also differ from the Indian residents as you will need to pay a bit higher interest rate than Indian residents. Apart from this, the tenure of repayment of NRI home loan or NRI personal loans is also quite lower as compared to the other loans provided to resident Indians. The reason associated with this is that NRI earns a decent income which indirectly indicates a high repaying capability.
NRI in Philippines
During the Spanish administration of the islands in the sixteenth century, the Philippines were named after Philip II, King of Spain. The Philippines has significant cultural linkages with the West, having been under Spanish domination for 333 years and then under US tutelage for another 48 years. It is, for example, Asia’s second-most populous nation (after India) with English as its official language, as well as one of Asia’s only two exclusively Roman Catholic countries (the other being East Timor). Despite the preponderance of Anglo-European cultural features, the Filipinos’ attitudes and aspirations remain Asian.
During the final quarter of the twentieth century, the country was torn apart by political unrest. In 1986, following more than a decade of authoritarian rule under President Ferdinand Marcos, the People Power movement began a nonviolent uprising against the government. Marcos was deposed and exiled as a result of the conflict, which also resulted in the restoration of democratic governance in the Philippines.
Capital:- Manila
Population:- 112,917,000(2022 Est.)
Official Languages:- Filipino; English
Total Area:-295,633 (Sq Km)
Monetary Unit:-Piso
Currency Exchange Rate:- 0.68 peso
Indian Filipinos are Filipinos of Indian heritage who have established themselves in what is now the Philippines and have historical ties to the country. The word refers to Filipinos of pure or mixed Indian ancestry who are now residing in the nation, the latter as a consequence of intermarriages between Indians and locals.
Trade between the Indian subcontinent and the Philippine Islands has been documented from the ninth and tenth centuries B.C., according to archaeological data. According to National Geographic, South Asian DNA accounts for 3% of the typical Filipino’s genes or about 3,300,000 people.
The Philippines is the only Southeast Asian country that was colonised by the West before it had the chance to build a centralised government that ruled over a wide area or a dominating culture. The inhabitants of the Philippines in ancient times were a heterogeneous assemblage of peoples who arrived in several waves from the Asian mainland and had little interaction with one another.
In 982, the Indonesian dynasties of Srivijaya and Majapahit brought certain cultural influences from South Asia to the islands, such as a Sanskrit-based writing system; nonetheless, in comparison to other areas of the region, China and India had minimal effect on the Philippines. Unlike the majority of Southeast Asian peoples, the ethnic of the Philippine archipelago never converted to Hinduism or Buddhism.
Cultural life
The society of the Philippines is a unique blend of diversity and conformity. Despite its Southeast Asian setting, the country has a strong Euro-American culture. Assimilation forces have worked tirelessly to overcome cultural disparities among the island’s numerous ethnic groups, which are scattered—sometimes in relative isolation—across the archipelago. On the other hand, over four centuries of Western supremacy have left an indelible impact on the Philippines, serving as a conduit for the introduction of Western culture and a catalyst for the building of a sense of political and cultural unity in the country.
Economy
The Philippines is mostly a farming country. Individuals and nonprofit organizations are allowed to engage in its creation and maintenance, sometimes with the help of government credit.
Filipinos collectively refer to the Philippines’ ethnically diverse people. The great majority of the people have Malay forebears who originated on the Southeast Asian mainland as well as in what is now Indonesia. Nearly 100 culturally and linguistically different ethnic groups make up contemporary Filipino culture.
The total number of islands in the archipelago was previously considered to be 7,107, but in 2016, the Philippines’ National Mapping and Resource Information Authority announced the discovery of more than 500 previously unknown islands. The archipelago covers 1,150 miles (1,850 kilometres) from north to south, with the largest east-west width of 700 miles in its southern base (1,130 km).
Interest Rate of Personal Loan for NRIs in Manila, Philippines
Home loans for NRIs in Manila, Philippines
Non-Resident Indian home loans are similar to personal loans. Generally, an NRI uses an NRI home loan in India to invest in properties in India. It has the same structure as a normal home loan, and like other loans, one can repay an NRI home loan in India in EMI. NRI home loans in India offer an attractive interest rate on a monthly reducing basis and a part-prepayment facility for zero fees. Besides this, they provide you with a choice of fixed and floating interest rates and also offer you doorstep service in India to the date of disbursement.
An individual should be salaried or self-employed to get an NRI home loan in India. One can get an NRI home loan if the minimum age is 21 years and the maximum age for applying for an NRI home loan in India is 70 years. The loan tenure of an NRI home loan in India is generally up to 30 years with varying interest rates. Above all minimum salary required for applying for a non-resident Indian home loan is rupees 5 lakhs per month.
Interest Rate of Home Loan for NRIs in Manila, Philippines
Features of NRI home loans and NRI personal loan for NRI in Manila, Philippines
Following are the features of an NRI personal loan for NRI in Manila, Philippines: –
The maximum loan amount available to the applicant in NRI personal loans is up to 10 lakh rupees, and the individual can use it to meet various financial needs.
The NRI personal loan offers attractive interest rates. The interest rates of NRI personal loans are competitive and in line with other types of unsecured credit. The interest rates in NRI personal loans can vary depending upon the bank or lender.
NRI personal loans provide you with flexible repayment tenure. Specifically, unsecured personal loans come with a flexible repayment tenure, and the repayment tenure can be of 60 months.
You can use the NRI personal loan to meet any financial requirement. The NRI personal loans provide you with flexible end usage, and you can use them to meet any financial crisis, medical expenses, home renovation, debt consolidation, etc.
The NRI personal loans are easy to apply and quick to process. NRI personal loans require minimal documentation, and the process is hassle-free, ensuring quick processing and disbursal of the loan.
Eligibility criteria to get NRI home loan or NRI personal loan for NRI in Manila, Philippines
To apply for an NRI personal loan for NRI in Manila, Philippines, the applicant’s minimum age should be 21 years, and the maximum age should be 60 years.
The minimum age of 21 and maximum age of 60 years is required in the case of a salaried applicant. If the applicant is self-employed, the minimum age should be 21 years, and the maximum age should be 68 years.
If the applicant is self-employed still, they should have a minimum total work experience of 2 years in the current business.
Above all, to apply for an NRI personal loan, the applicant mandatorily needs to have a co-applicant. The co-applicant can be any close relative of the applicant, like a father, spouse, children, etc.
The salaried applicants need to reside abroad for a minimum of one year, and self-employed applicants need to reside abroad for a minimum of three years.
Here it would help if you remembered that these eligibility criteria are generic and can vary from bank to bank and lender to lender. Your credit score, employment status, country of residence, employer, and income are the other essential factors that are considered before providing you with an NRI personal loan.
Necessary documents required for NRI home loan or NRI personal loan for NRI in Manila, Philippines
To get an NRI personal loan for NRI in Manila, Philippines, the applicants need to submit some essential documents they are following: –
First, the applicant must submit a photocopy of his passport and visa.
Secondly, the applicant must provide identity proof, which can be your Aadhaar card, Personal Account Number (PAN) card, etc. Besides this, you will also need to submit the identity proof of your co-applicant.
To get NRI personal loan, the applicant needs to submit income proof. The applicant needs to submit the last six months’ account statement of both the Indian and the International bank accounts. Besides, the applicant also needs to submit a salary certificate or salary slips of the last six months.
Applicants and co-applicants are required to submit their address proof. You can use your Aadhar card, passport, etc., as proof of your address.
As your employment proof, you can submit your job contract, Human Resource (HR) email ID or official email ID appointment letter, labor identity card, etc.
If the applicant is present in India while applying for the loan application. In that case, the applicant must attest or locally notarize a power of attorney. If the applicant is outside India while submitting the loan request, then a power of attorney must be attested by the Indian consulate of the NRIs resident country.
Lastly, you need to submit your passport-size photograph.
Again, the list of documents mentioned here is generic, and they can vary from bank to bank. There is a probability that some banks may ask the applicant to submit some additional documents.
Essential financial documents required for salaried applicants for NRI home loan or NRI personal loan for NRI in Manila, Philippines
The minimum work experience required to apply for an NRI personal loan is two years, with at least one year in the current organization.
The individual needs to submit a copy of their current appointment letter. If you don’t have your recent appointment letter, you can submit a copy of your salary certificate with your joining date, current salary, and your designation in the company.
The applicant needs to submit the previous appointment letters, the last three-month salary slips for a fixed salary, and the previous four months’ salary slips if the applicant has a variable salary.
Lastly, the individual is required to submit the last six-month bank statements that should mention the salary credits in the applicant’s account.
Financial documents required for salaried applicants for NRI home loan or NRI personal loan for NRI in Manila, Philippines
The self-employed applicants need to submit the following financial documents: –
Firstly, the individual needs to submit a copy of the incorporation of the business.
Next, the individual is required to produce income proof.
In case the individual is in a partnership firm, the individual is also required to produce the partnership deed.
If the company of the applicant is a private limited company, then the applicant is required to submit the Memorandum of Association (MOA) and Articles of Association (AOA)of the company.
The bank will also demand a business profile and office address proof of the applicant.
The applicant needs to submit the last six months’ bank statements, which should be in the company’s name.
And lastly, the individual needs to submit the last six months’ bank statements in his name.
Frequently Asked Questions for NRI in Manila, Philippines
Is it possible to apply for an NRI personal loan for NRI in Manila, Philippines without going to the branch office of the lender?
The majority of banks and lenders allow the applicant to apply for NRI personal loan through an online medium. However, you are requested to carefully check the application process through the bank’s customer service department, or you can also take help from the NRI help desk. Knowing all the essential details of any bank before applying for the NRI personal loan is very important. Besides this, there is a possibility that some banks or lenders may require you to visit their branch physically while applying for the loan.
Is it possible to get another NRI personal loan for NRI in Manila, Philippines if I already have one?
Yes, you can have more than one NRI personal loan at a time. It means that even if you already have an NRI personal loan, you can still apply for a second NRI personal loan. If you already have an existing NRI personal loan, they will provide you with a specific disposable income after paying the monthly EMIs for both. Besides this, if you already have one, the terms and conditions to apply for another NRI personal loan can vary from bank to bank or lender to lender.
Can I use NRI personal loan for my wedding expenditure or my education expenses?
Yes, NRI personal loans can be used for any purpose. These loans have flexible end usage, and you can meet any financial expenses through NRI personal loan. The financial expenses can be anything like a wedding party, home renovation, education, debt consolidation, etc.
In the case of co-applicants, who can be my co-applicant?
If you are applying for an NRI-secured personal loan, then the bank or lender will demand a co-applicant or guarantor, and it can be any close relative or family member. Remember that friends are not permitted to be co-applicants or guarantors while applying for NRI personal loans in India.
How will I receive the loan amount?
Once all the formalities are done and the bank or the lender approves the loan, the loan amount will be disbursed to the borrower’s Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account. The loan amount you have applied for is usually disbursed in Indian rupees, but there are some exceptions where lenders can also provide you with a loan in foreign currency. Before applying for the loan, you should confirm it with your lender or bank.
Final words for NRIs aspiring to take Home loan or personal loan for NRI in Manila, Philippines
Being an NRI in Manila, Philippines, you can easily take advantage of NRI personal loans. Different banks offer NRI personal loans at different interest rates. Besides this, you will receive flexible repayment tenure, and they also provide flexible end usage. There are certain things that you should keep in your mind while applying for NRI personal loans. The interest rates of NRI unsecured personal loans are quite high compared to NRI secured personal loans; the reason behind this can be the greater degree of risk for the lender. Being an NRI has some advantages and disadvantages. For example, an NRI personal loan has a high-interest rate than a personal loan available to Indian residents. The repayment tenure of NRI personal loans also differs from the repayment tenure of a personal loan of Indian residents.
The banks offer higher interest rates and less repayment tenure than Indian residents’ loans because the income of NRIs is relatively good compared to the Indian residents. Apart from this, the best part about NRI personal loans is that one can use them to meet any financial requirement. You can use it for your medical expenses, the financial crisis, debt consolidation, home renovation, education of a child, etc. It would be best if you always compared the interest rates and repayment tenure of different banks before applying for the NRI personal loans, and you should always choose the bank that meets your requirements.
