Is an NRI in Ottawa, Canada 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 Ottawa, Canada, 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 Ottawa, Canada, 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 Canada
Canada, after Russia, is the world’s second-largest country by area, covering about two-fifths of the continent of North America. From the arrival of the Paleo-Indians in North America to the present day, Canada’s history spans thousands of years. Before European colonisation, Indigenous peoples occupied the territories that now make up Canada for millennia, each with its own trading networks, spiritual beliefs, and social organisation patterns. Some of these previous civilizations had long since disappeared by the time of the first European invasions, but archaeological research has uncovered them.
Capital:- Ottawa
Population:- 37,424,000(2022 est.)
Official Languages:-English; French
Total Area:- 9,984,670(Sq Km)
Monetary Unit:-Canadian dollar (Can$)
Currency Exchange Rate:- 1 INR = 0.0164114 CAD
Canada is a North American nation. Its 10 provinces and three territories stretch from the Atlantic to the It covers 9.98 million square kilometres (3.85 million square miles) and extends northward into the Arctic Ocean. Its southern and western border with the United States is the world’s longest binational land border, reaching 8,891 kilometres (5,525 miles).
Indigenous peoples have resided in the present-day country of Canada for thousands of years. Exploration and settlement along the Atlantic coast began in the 16th century with British and French voyages. In 1763, France ceded practically all of its possessions in North America as a result of several violent battles. Following the Confederation of three British North American colonies, Canada was founded as a federal country with four provinces in 1867.
Land of Canada
Thousands of nearby islands, including Newfoundland to the east and the Arctic Archipelago to the north, make up Canada’s overall land area. The Arctic Ocean to the north, Greenland (a self-governing part of the Danish kingdom) to the northeast, the Atlantic Ocean to the east, 12 US states to the south, and the Pacific Ocean and the US state of Alaska to the west; in addition, tiny Saint-Pierre and Miquelon (a French archipelago) lie off the coast of Newfoundland.
Economy of Canada
Exploiting and exporting Canada’s plentiful natural resources was important to the country’s early colonisation and growth. Manufacturing and service industries grew in importance over the twentieth century. Agriculture and mining employed fewer than 5% of Canada’s workforce at the end of the twentieth century, while manufacturing employed one-fifth and services, such as transportation, commerce, banking, and other industries, employed over three-quarters of the workforce.
Protective tariffs on imported manufactured goods have been used by Canada to assist its manufacturing industry for many years. As a result, numerous U.S. companies opened branch offices in Canada to serve the market. The government’s distribution of grants and subsidies to support economic development in slow-growing areas was another pillar of Canada’s economic policy.
Cultural life
In its widest sense, Canadian culture is a mash-up of British, French, and American elements, which merge and compete in every facet of cultural life, from filmmaking and literature to food and athletics. Others have added their own individual flavours to the mix.
People
Canada is home to a varied range of national and cultural groups. Around half of the population was of British origin at the time of the country’s first census, in 1871, and roughly one-third was of French descent. Since then, the percentage of Canadians of British and French ancestry has decreased to around one-fourth each, as fewer individuals have come from the United Kingdom and France, and much more have arrived from Asia, Africa, Latin America, and the Caribbean. Because immigrant groups have tended to dwell in certain areas, their cultural identities have mostly been preserved.
Types of NRI Home loans or NRI Personal Loans available for NRI in Ottawa, Canada
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 Ottawa, Canada
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 Ottawa, Canada
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 Ottawa, Canada
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 Ottawa, Canada
Home loans for NRIs in Ottawa, Canada
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 Ottawa, Canada
Features of NRI home loans and NRI personal loan for NRI in Ottawa, Canada
Following are the features of an NRI personal loan for NRI in Ottawa, Canada: –
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 Ottawa, Canada
To apply for an NRI personal loan for NRI in Ottawa, Canada, 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 Ottawa, Canada
To get an NRI personal loan for NRI in Ottawa, Canada, 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 Ottawa, Canada
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 Ottawa, Canada
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 Ottawa, Canada
Is it possible to apply for an NRI personal loan for NRI in Ottawa, Canada 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 Ottawa, Canada 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 Ottawa, Canada
Being an NRI in Ottawa, Canada, 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.
