Keeping the requirements of financial of NRI customers in mind, Indian banks have been offering NRIs to handle their payments with ease, while they are in India or abroad. While mostly similar to a regular credit card, there are several aspects of an NRI credit card which are distinct from usual. An NRI can use this credit cards to make any purchases, for travel bookings, to pay at restaurants, etc. The most significant benefit these cards offer is that they allow the cardholder to pay in rupees and eliminate the nuisance of currency conversion.
Eligibility Criteria for NRI Credit Card
To apply for an NRI credit card in India, banks have eligibility guidelines laid down.
Some of the usually requested requirements include the NRI to hold an NRO (Non-Resident Ordinary) account or NRE (Non-Resident External Rupee) account with the bank. This is one of the primary criteria followed by every bank that issued NRI credit card. The type of account can be a Savings, Current, Term Deposit or a Fixed Deposit Account. The credit limit allowed on the credit card will be determined based on the amount stored in the bank account, which is only a measure to assess the repayment ability of the account holder. Many banks may also need the account holder to maintain a minimum balance in such accounts in order to be eligible for a credit card.
Documents Required to apply for an NRI credit card
For the application, a person will require to render the bank with the following documents. For specific documents needed to obtain a credit card, please contact your local bank.
- Passport sized photos.
- A self-cheque drawn by the NRI candidate on their bank account held abroad.
- Photocopy of the applicant’s passport, work permit, visa, and valid address proof for their abroad and India and also an official document with the proof of signature.
Benefits of NRI Credit Card
NRI Credit Card affords several benefits to the cardholder, which are listed as follows:
- Reward Points – NRI credit cardholders can make purchases in abroad or India and can also earn reward points.
- Cash Back – When the credit card is swiped at any partner hotels, for international purchases, etc., cardholders can receive some cash back.
- Surcharge Waiver– Cardholders receive a waiver on fuel surcharge when they use the credit card to buy petrol at fuelling stations and on train bookings done in India.
- No Currency Conversion Required – The most significant benefit given by an NRI credit card holder issued from a local nearby bank is that they eliminate the nuisance of currency conversion or the requirement of using a card of another nation as transactions are carried out in Indian currency form.
- Interest – Interest may vary from one bank to the other. However, the interest will be more than what is charged on a regular credit card, and various banks also provide low interest on these cards. To find out the interest chargeable on the card before applying.
- Revolving Credit Facility – With this facility, cardholders can get profit from interest-free periods and also have the choice to carry their balance forward (interest will be charged on balance).
- ATM Access – NRI credit cards will give the cardholder access to cash at hundreds of MasterCard or VISA ATMs not only in India but also overseas.
- Easy Payment Options – One can make secure payments for an NRI credit card by their NRE, NRO or FCNR account. After making an inward remittance to any of the accounts as mentioned above, NRIs can then make their credit card payments.
- Add-on Cards – NRI credit card also gives the facility of add-on or additional cards which can be used by any of your family members and he/she can also get benefit from the usage of the card.
Banks Offering NRI Credit Card
There are several banks in India such as SBI, HDFC, ICICI, Kotak Mahindra, Axis Bank, Citibank and others who offer the NRI credit card.