Can foreigner (non-PIO/OCI/NRI) get loan?

Piper · Apr 29th, 2008, 19:43

Folks,
Does anyone know if a foreigner who is not a PIO, OCI, NRI, or other sort of "permanent" person get a loan from a bank?

I believe the answer is that no, they cannot legally obtain a bank loan. Anyone know for sure?

capt_mahajan · Apr 29th, 2008, 20:47

I don't know about PIO's or OCI's, but NRI's can get loans- at least housing loans, car loans and such, legally.

Business loans, I don't know.

PS: googled one Indian bank, this is the NRI loan page

http://www.hdfc.com/Loans/NRILoans.asp?tn=1

The_Londoner · Apr 29th, 2008, 22:29

I understand that they will have a problem obtaining a Bank account, let alone a loan.

Nick-H · Apr 29th, 2008, 23:25

In theory, even tourists can get short-term bank acounts. There is no problem, according to Reserve Bank of India regulations. I have seen the fact advertised near to Kovalam in Kerala, where some banks must have decided to cash in on it.

However, I found a lack of willingness to open an account for me until I had the magic Residents Permit, when all objections and intransigences vanished in a cloud of Yes-Sirs

capt_mahajan · Apr 29th, 2008, 23:29

There are non resident accounts available with any bank.

I have had a few for more than twenty five years, including some recently- with about five or six different banks, including Citibank and Indian public and private sector ones.

Nick-H · Apr 29th, 2008, 23:44

Isn't that non-resident as in NRI, Captain?

capt_mahajan · Apr 29th, 2008, 23:51

, yes

a little later:

Damn, I have misread the OP's title completely.

Disregard all my posts, as usual.

crvlvr · Apr 30th, 2008, 00:08

Piper, If it's a loan againt a collateral in India, I don't see why not. Especially if the borower is employed in India. Personal loans (unsecured loans like credit cards) on the other hand will not be available.

sthakur · Apr 30th, 2008, 00:19

Hi,

Last time when I was in Mumbai, I tried to get a loan for a car (Tata Safari), tried every bank which had a nri program for auto loans, mind you I have residential proof, pan card and a ration card, but still no luck after numerous attempts and follow ups with these bank agents.

Later I was told, if I would deposit some money into a account, they will lend me on my deposits, at a certain ratio ( which seemed odd).

What I determined, banks are hesitant to lend to NRI's, if your LTV ratio is higher then 50%, have no source of income in India or property in your name.

So i decided to rent a car, rather then buy.

sthakur

shashank.aggarwal · Apr 30th, 2008, 07:44

Most of the conditions clearly mention that the applicant should be an Indian national...and they have special schemes only for an NRI...

btw...why do you think they should lend you money, you are not a resident of this country and move on ant time you want..infact you will move on in less than 6 months...its poor credit..

Nick-H · Apr 30th, 2008, 15:50

Yep, that is exactly how I would think if I was a banker!

Apr 29th, 2008, 19:43	#1
Piper Standard-issue lurker Join Date: Jan 2008 Location: Bangalore Posts: 75	Can foreigner (non-PIO/OCI/NRI) get loan? Folks, Does anyone know if a foreigner who is not a PIO, OCI, NRI, or other sort of "permanent" person get a loan from a bank? I believe the answer is that no, they cannot legally obtain a bank loan. Anyone know for sure?

Apr 29th, 2008, 22:29	#3
The_Londoner Senior Member Join Date: Dec 2007 Location: London, UK Posts: 290	I understand that they will have a problem obtaining a Bank account, let alone a loan. __________________ Idle mind is a Devil's workshop.

Apr 29th, 2008, 23:25	#4
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 26,856	In theory, even tourists can get short-term bank acounts. There is no problem, according to Reserve Bank of India regulations. I have seen the fact advertised near to Kovalam in Kerala, where some banks must have decided to cash in on it. However, I found a lack of willingness to open an account for me until I had the magic Residents Permit, when all objections and intransigences vanished in a cloud of Yes-Sirs __________________ . Just one member of the IndiaMike Mod Team

Apr 30th, 2008, 00:19	#9
sthakur Member Join Date: May 2005 Location: Toronto Posts: 63	Loan possible, but with many conditions Hi, Last time when I was in Mumbai, I tried to get a loan for a car (Tata Safari), tried every bank which had a nri program for auto loans, mind you I have residential proof, pan card and a ration card, but still no luck after numerous attempts and follow ups with these bank agents. Later I was told, if I would deposit some money into a account, they will lend me on my deposits, at a certain ratio ( which seemed odd). What I determined, banks are hesitant to lend to NRI's, if your LTV ratio is higher then 50%, have no source of income in India or property in your name. So i decided to rent a car, rather then buy. sthakur

Apr 30th, 2008, 07:44	#10
shashank.aggarwal Mr. Badboy :D Join Date: May 2007 Location: ~ Dilli ~ Posts: 5,504	Most of the conditions clearly mention that the applicant should be an Indian national...and they have special schemes only for an NRI... btw...why do you think they should lend you money, you are not a resident of this country and move on ant time you want..infact you will move on in less than 6 months...its poor credit.. __________________ Travelogue - Around India Random Reviews

Apr 29th, 2008, 20:47	#2
capt_mahajan (in charge of navel affairs) Join Date: Sep 2005 Location: India Posts: 10,105	I don't know about PIO's or OCI's, but NRI's can get loans- at least housing loans, car loans and such, legally. Business loans, I don't know. PS: googled one Indian bank, this is the NRI loan page http://www.hdfc.com/Loans/NRILoans.asp?tn=1

Apr 29th, 2008, 23:29	#5
capt_mahajan (in charge of navel affairs) Join Date: Sep 2005 Location: India Posts: 10,105	There are non resident accounts available with any bank. I have had a few for more than twenty five years, including some recently- with about five or six different banks, including Citibank and Indian public and private sector ones.

Apr 29th, 2008, 23:44	#6
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 26,856	Isn't that non-resident as in NRI, Captain?

Apr 29th, 2008, 23:51	#7
capt_mahajan (in charge of navel affairs) Join Date: Sep 2005 Location: India Posts: 10,105	, yes a little later: Damn, I have misread the OP's title completely. Disregard all my posts, as usual.

Apr 30th, 2008, 00:08	#8
crvlvr Guru Join Date: Sep 2004 Location: Hollywood Posts: 4,474	Piper, If it's a loan againt a collateral in India, I don't see why not. Especially if the borower is employed in India. Personal loans (unsecured loans like credit cards) on the other hand will not be available.

Apr 30th, 2008, 15:50	#11
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 26,856	Yep, that is exactly how I would think if I was a banker!

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