Non-Resident Indians (NRIs), can now access Indian financial products such as credit cards but the terms and conditions of usage vary among institutions. Let us look at the eligibility, benefits, and considerations for NRIs applying for Indian credit cards.
Eligibility criteria
Banks have specialised credit card offerings for NRIs. Eligibility criteria vary, but commonly include NRI status, age, income, and a bank account. To apply for a credit card in India as an NRI, individuals must hold a valid NRI status or possess an OCI (overseas citizenship of India) card. Applicants are required to be at least 21 years of age, and have a steady source of income either in India or abroad. The income requirements may differ based on the type of credit card. Also, NRIs applying for a credit card in India must have an NRI account or an NRO (non-residential ordinary) account with the issuing bank for credit card bill payments and other related transactions.
Benefits of NRI credit cards
NRIs who obtain credit cards in India can enjoy a variety of benefits.
Accessibility and convenience: NRI credit cards allow individuals to access funds in India easily during visits or emergencies. They can be used for various purposes, such as shopping, dining, travel bookings, and online transactions, both in India and abroad.
International usage: Many NRI credit cards come with international acceptance, enabling NRIs to use their cards globally. This feature is particularly beneficial for frequent travellers or those who often take international trips.
Rewards and offers: NRI credit cards often offer rewards programmes, including cashback, airline miles, dining, and entertainment. These perks make credit card usage more rewarding.
Adhil Shetty, CEO, Bankbazaar.com, suggests, “Research the features and benefits of the credit card you intend to apply for, including rewards, cashback, travel benefits, and any associated fees and charges. Choose a card that aligns with your financial needs and spending habits.”
Online banking, bill payments: Online banking facilities allow NRIs to manage their credit card accounts, view statements, and make bill payments conveniently from anywhere in the world. Apart from some benefits, it is crucial to take into account the charges one must pay for using these credit cards. Individuals must read the terms and conditions and go through the charges for services they think they will be availing the most.
Currency exchange rates: When using an NRI credit card for transactions in a currency other than the Indian rupee, exchange rates and associated fees may apply. It is essential to compare exchange rates and assess the impact on overall costs.
Annual fees and interest rates: NRI credit cards may have annual fees and interest rates that vary depending on the type of card and the issuing bank. It is advisable to review and compare these charges to select a card that aligns with your financial requirements.
Credit history and limits: Establishing a credit history as an NRI may be challenging, especially for individuals who have recently moved abroad. This can affect the credit limit initially offered on the card. Timely payments and responsible credit card usage can help build a positive credit history over time.
Benefits
Annual fees and interest rates may vary depending on the type of card and the issuing bankNRI credit cards allow individuals to access funds in India easily during visitsWhen paying for transactions in a foreign currency, exchange rates and associated fees may apply