NRI Credit Cards: Even though they may reside outside, the great majority of non-resident Indians (NRIs) nonetheless owe money in India. They would be able to control their spending in India with the help of an NRI credit card. NRIs can also use an Indian-issued credit card to make payments when they return home. This reduces foreign transaction costs for NRIs by preventing them from using foreign-issued cards in India. The varieties and advantages of NRI credit cards are explained.

What is NRI Credit Card & its Types:
Indian banks provide non-resident Indian people with NRI credit cards, which are mostly intended for domestic use. Similar to credit cards given to Indian residents, it can be used for both online and offline transactions. For NRIs, banks provide credit cards based on their bank accounts, known as Non-Resident Ordinary (NRO) or Non-Resident External (NRE) cards.

NRE account-based credit cards can be used for both domestic and foreign transactions, whilst NRO account-based credit cards are only available for domestic use. However, the customer must be present at the bank branch during the card application process in order to receive the credit card.

By going to your bank’s branch in India or abroad and submitting the application form together with the necessary paperwork, you can apply for an NRI credit card. However, some banks demand that the NRI be in India when applying for a card. Additionally, NRIs’ NRE/NRO fixed deposits (FDs) are used to issue these credit cards.

Benefits of NRI Credit Cards:
Numerous advantages are provided by NRI credit cards. Both Indian and foreign currencies are available for NRIs to use while making payments online. However, there are foreign exchange conversion fees associated with international transactions. Additionally, these credit cards give NRIs access to foreign ATMs where they can take out local currency.

However, banks charge foreign exchange conversion fees and withdrawal fees for utilizing overseas ATMs. The majority of the perks offered by domestic credit cards are also available with NRI credit cards. When using NRI credit cards for domestic (Indian) transactions, you can get incentives and cashbacks. Additionally, you can take advantage of special airline alliances that provide perks like priority check-in, bonus miles, and lounge access. NRIs can add family members as supplemental cardholders with leading banks.

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Application Process:
To be eligible for the credit card, NRIs must have a current NRE or NRO account with the issuing bank. 21 should be the minimum age for the primary cardholder. However, some banks provide cards to people as young as 18. The list of documentation required to obtain an NRI credit card is as follows:

1. Valid passport
2. Valid work permit/employment
3. visa/admission letter
4. Indian address proof
5. Foreign address proof
6. PAN card or Form 60(if applicable)
7. Foreign Account Tax Compliance Act
8. Three-month income statement
9. Indian reference address and Indian phone number.

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The credit limit of an NRI credit card is normally set at 80% of the deposit amount if you are using it to pay off your NRE or NRO FDs. Some banks only permit individual FDs to apply for credit cards and have imposed a minimum FD limit. The qualifying requirements for NRI credit cards vary from bank to bank and are typically based on the customer’s financial history, work status, and income.

If you are using an NRI credit card to pay off your NRE or NRO FDs, the credit limit is typically set at 80% of the deposit amount. Certain banks have set a minimum FD limit and only allow individual FDs to apply for credit cards. Each bank has different qualifying conditions for NRI credit cards, but they usually center on the customer’s income, employment status, and financial history.

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