One of the most frustrating calls I get in our community is this:
“Mani, I had an 800 credit score in the US. Here in India, they’re treating me like I don’t exist.”
It’s a real problem.
You’ve spent years building financial credibility abroad. But when you land in India, your CIBIL score is either zero or non-existent.
And suddenly, getting a simple personal loan feels impossible.
I’ve seen this happen to dozens of returnees. The good news? There are ways around it.
Why Your US Credit Score Doesn’t Count in India
Credit scores don’t travel across borders.
Your excellent payment history in America means nothing to Indian lenders. They only look at your CIBIL score – a three-digit number based on your credit activity in India.
If you’ve never had a loan or credit card here, your score is likely “NA” or “NH” (no history).
Banks see this as a red flag. Not because you’re risky. But because they simply have no data on you.
Your Options for Getting a Personal Loan
Here’s what actually works for returned NRIs with no credit history.
1. Start with the Bank Where You Already Have an Account
This is your easiest path.
If you have an NRE or NRO account, that bank already knows you. You’re not a stranger to them.
Banks like SBI, HDFC, and ICICI have specialized products for NRIs and returning Indians. Your existing relationship gives you leverage.
What helps here:
- A healthy account balance
- Regular transaction history
- Salary credits (if you’ve started working in India)
Walk into your branch. Talk to a relationship manager. Explain your situation.
Many banks will consider your foreign income proof, overseas bank statements, and US tax returns as evidence of financial stability.
2. Get a Loan Against Your Fixed Deposit
This is probably the simplest option if you have some savings.
Here’s how it works:
You open a Fixed Deposit with a bank. Then you borrow against it.
The bank gives you 75-90% of your FD value as a loan. Since your money is the collateral, they don’t care about your credit history.
| Benefit | Details |
|---|---|
| Interest rate | Usually 1-2% above your FD rate |
| Credit check | Minimal or none |
| Approval time | Fast (often same day) |
| Your FD | Stays intact, keeps earning interest |
This is low-risk for both sides. And it helps you start building a credit history in India.
3. Apply for a Secured Credit Card First
Sometimes the best way to get a loan is to not apply for one right away.
Instead, get a secured credit card.
You deposit money (say ₹50,000) as collateral. The bank gives you a credit card with a similar limit. You use it, pay your bills on time, and your CIBIL score starts building.
After 6-12 months of responsible use, you’ll have a credit history. Then applying for a personal loan becomes much easier.
Most major banks offer secured cards. HDFC, ICICI, Axis, and SBI all have options.
4. Add a Co-Applicant or Guarantor
This is common for NRI loans and works for returned NRIs too.
If a family member in India has a good credit score, they can co-sign your loan application.
The bank gains confidence because someone with an established credit history is backing you.
This could be:
- Your spouse
- Parents
- Siblings
Make sure your co-applicant understands they’re equally responsible for repayment.
5. Try NBFCs Instead of Traditional Banks
Non-Banking Financial Companies are often more flexible than banks.
They’re used to working with customers who don’t fit the standard profile. And they have different risk assessment methods.
Some popular NBFCs in India:
- Bajaj Finserv
- Tata Capital
- Mahindra Finance
- Fullerton India
Yes, interest rates might be slightly higher (12-18% vs 10-14% for banks).
But if you need funds quickly and banks are saying no, NBFCs can be a practical solution.
6. Explore Peer-to-Peer Lending Platforms
Platforms like Faircent and LenDenClub connect borrowers directly with individual lenders.
Approval criteria differ from banks. But read terms carefully – interest rates vary widely.
Use this as a backup option, not your first choice.
Documents You’ll Need
Keep these ready:
- Indian passport and visa stamps
- US passport (if applicable)
- PAN card and Aadhaar card
- Address proof in India
- Last 6-12 months of foreign bank statements
- US tax returns (W2 forms, 1040)
- Employment letter or salary slips (if working in India)
Having organized documentation makes a big difference.
Building Your Credit Score for the Future
Getting this first loan or credit card is just the beginning.
Here’s how to build a solid credit history over time:
- Pay every bill on time – This is the single biggest factor
- Keep credit utilization low – Don’t max out your cards
- Maintain old accounts – Length of history matters
- Don’t apply for too much credit at once – Each application creates a hard inquiry
- Check your CIBIL report regularly – Errors happen, catch them early
You can check your CIBIL score for free once a year at cibil.com. I recommend doing this every 6 months.
What If You Get Rejected?
It happens. Don’t take it personally.
If one bank says no, ask why. Address the issue if possible. Try a different lender. Or consider the secured options first.
Sometimes you just need to wait 6 months, build some history with a secured card, and try again.
A Few Realistic Expectation
Interest rates for borrowers with no credit history will be higher. That’s just how it works.
Loan amounts might be smaller initially – ₹2-5 lakhs is realistic for a first personal loan without collateral.
Building credit takes patience. But I’ve seen community members go from zero history to getting home loans within 18-24 months of returning.
Quick Summary
| Option | Best For | Timeline |
|---|---|---|
| Loan from existing bank | Those with NRE/NRO accounts | 1-2 weeks |
| Loan against FD | Those with savings | Same day to 1 week |
| Secured credit card | Building credit first | 6-12 months before loan |
| Co-applicant route | Those with family support | 1-2 weeks |
| NBFCs | Quick approval needed | 1-2 weeks |
| P2P platforms | Backup option | Varies |
Final Thoughts
Moving back to India means starting fresh in many ways. Credit is one of them.
It can feel frustrating. Especially when you’ve been financially responsible your whole life.
But the system here is different. Not better or worse – just different.
Take it step by step. Start with what’s available to you. Build from there.
You’ll get there.
If you’re navigating the return journey and have questions, join our WhatsApp community at backtoindia.com/groups.
Over 20,000 NRIs are already there, sharing experiences and helping each other daily.
It’s free, volunteer-run, and genuinely supportive.
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