Is an NRI in Wellington, New Zealand 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 Wellington, New Zealand, 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 Wellington, New Zealand, 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 New Zealand
New Zealand, an Island Country, Situated in the southwestern Pacific Ocean. New Zealand is the Sixth-Largest Island Country. It Consists of Two –the north island and the south Island & 700+ Small Islands. Total area covering by New Zealand is 268,021 square Kilometres (103,500 sq mi) with Total Estimated population of 5,129,810 at May 2022. It has an advanced market economy. In 2019, ranked 14th in Human Development Index and In 2020, ranked 3rd in Index of Economic Freedom.
Capital – Wellington
Largest City – Auckland
National Language – Maori & New Zealand Sign Language
Spoken Language – Maori, English & New Zealand Sign Language, with the local dialect of English being dominant
Currency – New Zealand dollar (Kiwi Dollar)
In late 1800s, Indians firstly settled in New Zealand. Utmost of these early Migrants came from the regions of Punjab and Gujarat & works as temporary laborers. In 1896, They were counted only a Handful-as an estimated numbered of forty- six persons & were listed in occupational statistics as’ hawkers, peddlers, and retainers’. They were also overwhelmingly men. In Only one Indian woman was listed as Resident in New Zealand in 1896 utmost of these early Migrants didn’t intend staying there but They only wanted to earn money before returning the home.
Migration increased till 1920, when restrictions under a’ permit system’ introduced by the New Zealand Government. By this time, there were only over 2000 Indians in New Zealand. The number of Indian women had grown to 142, as some of the Indian men living there sent home for their women or, when they were single, for bride.5.01% of the total Population are Indians in New- Zealand.
TRADE
New Zealand is heavily dependent on international trade, specifically on agricultural products. In 2014, 55% of the value of all the country’s Export was made up from food products; Second largest Earner was wood (7%). Service sector is the largest sector in the economy, thereafter manufacturing & construction and after that farming & raw material extraction. Tourism plays a vital role in the economy of New Zealand. As at June 2018, China (NZ$27.8b), Australia ($26.2b), European Union ($22.9b), United States ($17.6b), and Japan ($8.4b) are the main trading partners of New Zealand. During Late 19th Century, Wool was major source of agricultural export. Between 1990 and 2007, Dairy farming was increased to become the largest export earner of New Zealand. Dairy Products accounted for 17.7% ($14.1b) of total exports in June 2018. Fonterra, largest company of country almost controls the One-third of international trade of dairy. In 2017-18, Other Exports were meat (8.8%), wood & wood products (6.2%), fruit (3.6%), machinery (2.2%) & wine (2.1%).
Infrastructure
40.1% of New Zealand’s gross energy supply generated from renewable energy in 2015. Hydroelectric power generated the majority of the country’s electricity supply. Geothermal power is also a significant generator of electricity in the North Island. The five main companies in the generation and retail market are as follows:- Genesis Energy, Contact Energy, Meridian Energy, Mercury Energy & TrustPower. New Zealand’s transport network includes 94,000 KMs (58,410 mi) of roads, including 199 KMs (124 mi) of motorways & 4,128 KMs (2,565 mi) of railway lines.
Types of NRI Home loans or NRI Personal Loans available for NRI in Wellington, New Zealand
Several leading banks offer personal loans to non-resident Indians. The personal loan provided to non-resident Indians can be categorized as secured personal loans and unsecured personal loans.
Secured Personal Loans for NRIs in Wellington, New Zealand
The bank provides secured personal loans against collateral or security. The generally accepted collateral by banks are fixed deposits, including Non-Resident External accounts, Non-Resident Ordinary term deposits, shares, high-valued assets, FCNR deposits, and other securities like property. The secured personal loans require a co-applicant or a guarantor. A guarantor is mandatorily required in secured personal loans because in case the applicant is not able to repay the taken loan. The guarantor, on behalf of the applicant, can repay the loan.
Guarantor’s Document for personal loans for NRIs in Wellington, New Zealand
If the applicant is applying for NRI secured personal loans, the applicant needs to have a guarantor or co-applicant. In that case, the applicant also needs to submit the documents of the guarantor or co-applicant. First of all, you should know that any personal relative can be your co-applicant or guarantor. The NRI personal guarantor documents required to apply for the loan are as follows: –
First, the applicant must submit a copy of the passport and visa of the guarantor.
Secondly, the bank also needs the current income documents of the guarantor.
Lastly, the applicant needs to provide overseas address verification proof if the guarantor is an NRI. One can provide the driving license or bank statement that shows the overseas address or any utility bill as residence proof.
Unsecured Personal Loans for NRIs in Wellington, New Zealand
Unsecured personal loans are loans that are provided without any collateral or security. These loans are given based on the prospective borrower’s profile, credit score, current outstanding debt, etc. Unsecured personal loans generally involve a significant degree of risk for the lender because they don’t demand any prior security. Unsecured personal loans are usually given at a higher interest rate than secured NRI loans. These loans are offered at higher interest rates because they don’t demand any prior security and impose a greater degree of risk to the lender.
Interest Rate of Personal Loan for NRIs in Wellington, New Zealand
Home loans for NRIs in Wellington, New Zealand
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 Wellington, New Zealand
Features of NRI home loans and NRI personal loan for NRI in Wellington, New Zealand
Following are the features of an NRI personal loan for NRI in Wellington, New Zealand: –
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 Wellington, New Zealand
To apply for an NRI personal loan for NRI in Wellington, New Zealand, 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 Wellington, New Zealand
To get an NRI personal loan for NRI in Wellington, New Zealand, 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 Wellington, New Zealand
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 Wellington, New Zealand
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 Wellington, New Zealand
Is it possible to apply for an NRI personal loan for NRI in Wellington, New Zealand 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 Wellington, New Zealand 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 Wellington, New Zealand
Being an NRI in Wellington, New Zealand, 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.
