#personal loan for NRIs without collateral

[fincrif]

How to Get a Personal Loan If You Are a Non-Resident Indian (NRI)

Non-Resident Indians (NRIs) often need financial support for various reasons—from managing expenses back home to investing in real estate, handling medical costs, or supporting a family member’s education in India. One of the most accessible financial solutions for these needs is a personal loan. But how does an NRI apply for a personal loan in India? What are the eligibility requirements? And what are the options available?

In this guide, we’ll cover everything NRIs need to know about getting a personal loan, including the application process, best lenders, benefits, and expert tips to increase the chances of approval. Whether you're working in the UAE, the US, the UK, or any other part of the world, securing a personal loan in India is possible—with the right guidance.

Can NRIs Get Personal Loans in India?

Yes, NRIs are eligible for personal loans in India, though the process is slightly different compared to resident Indians. Several banks and NBFCs (Non-Banking Financial Companies) offer personal loan products specifically designed for NRIs. These loans are generally offered against income proofs, collateral (in some cases), and with the support of an Indian co-applicant or guarantor.

With increasing global mobility and improved credit verification tools, many financial institutions are now open to offering personal loans to NRIs—especially those with stable income and strong repayment capacity.

Why Do NRIs Need Personal Loans in India?

There are several situations where NRIs might require a personal loan in India:

Funding a wedding or family function

Paying for medical treatment of a family member

Home repairs or renovation

Education expenses for children or siblings

Investment in real estate or business ventures

Debt consolidation or repaying existing loans

Whatever the need, a personal loan offers quick, unsecured funding with flexible repayment options.

Top Banks Offering Personal Loans to NRIs

Here are some of the top financial institutions that offer personal loans to NRIs:

1. ICICI Bank NRI Personal Loan

Loan Amount: ₹50,000 to ₹10 lakh

Interest Rate: Starting from 11.25% p.a.

Tenure: Up to 5 years

Requirement: Indian co-applicant mandatory

Special Feature: Online application available for NRIs

2. HDFC Bank NRI Personal Loan

Loan Amount: Up to ₹15 lakh

Interest Rate: Starting from 11.50% p.a.

Tenure: 12 to 60 months

Requirement: Power of Attorney or co-applicant required

Special Feature: Fast approvals and quick disbursal

3. Federal Bank NRI Personal Loan

Loan Amount: Up to ₹25 lakh

Interest Rate: Competitive rates based on profile

Tenure: Flexible repayment options up to 5 years

Requirement: Indian resident co-borrower

4. Bank of Baroda NRI Personal Loan

Loan Amount: Based on income and creditworthiness

Interest Rate: Starting from 10.75% p.a.

Tenure: Up to 60 months

Requirement: Resident Indian guarantor required

Each bank has its own criteria and documentation requirements, so comparing offers on a platform like www.fincrif.com can help you make an informed decision.

Eligibility Criteria for NRI Personal Loans

Though the exact criteria may vary by lender, here’s a general list of eligibility requirements for NRIs applying for a personal loan in India:

Nationality: Must be an NRI, PIO (Person of Indian Origin), or OCI (Overseas Citizen of India)

Age: Typically between 21 to 60 years

Income: Minimum monthly income (varies by country and lender; commonly $1000 or equivalent)

Employment: Should be employed abroad for at least 1–2 years

Indian Co-applicant or Guarantor: Most lenders require an Indian resident co-borrower

Credit Score: A good credit history (either in India or the residing country)

Documents Required for an NRI Personal Loan

Here’s a standard list of documents needed when applying for a personal loan as an NRI:

From the NRI Applicant:

Valid passport with visa stamp or work permit

Address proof (overseas and India)

Employment letter and salary slips for the last 3–6 months

Bank statements (foreign and Indian NRE/NRO accounts)

Income tax returns or Form 16 (if applicable)

From the Indian Co-applicant:

PAN Card and Aadhaar Card

Address proof

Income documents (salary slips, bank statements, ITR)

Additional documents like Power of Attorney (PoA) may also be required depending on the lender.

How to Apply for a Personal Loan as an NRI

Applying for a personal loan as an NRI is a straightforward process if you follow these steps:

1. Check Your Eligibility

Use online calculators on platforms like Fincrif to verify your eligibility based on your income, employment, and residency status.

2. Compare Offers

Every lender offers different interest rates and processing fees. Use Fincrif’s comparison tools to find the best personal loan deals tailored for NRIs.

3. Choose a Co-applicant in India

Most banks require an Indian co-applicant, who will be equally responsible for repaying the loan. Choose someone with a stable income and good credit score.

4. Gather Documentation

Collect all necessary documents—identity proof, address proof, employment proof, and income details—for both you and your co-applicant.

5. Submit Application

Apply online or through the bank’s NRI services team. Submit all documents digitally or courier them if needed.

6. Loan Approval and Disbursal

Once the bank verifies the documents and approves the loan, the funds will be disbursed to the Indian co-applicant’s account, and you can use them as required.

Benefits of Getting a Personal Loan in India as an NRI

There are several reasons why NRIs prefer taking a personal loan in India rather than in their residing country:

✅ Quick Access to Funds in India

Loan amounts are disbursed directly into the Indian bank account, making it easier to handle expenses for your family, home, or investments.

✅ Lower Interest Rates Compared to Foreign Loans

Interest rates on personal loans in India are generally lower than in many foreign countries, making it a cost-effective option.

✅ Flexible Repayment Options

You can choose a repayment tenure ranging from 1 to 5 years. EMI payments can be done by the co-applicant or via NRE/NRO accounts.

✅ No Collateral Needed

Most personal loans for NRIs are unsecured, which means you don’t need to pledge property or assets as security.

Tips to Improve Your Chances of Approval

Maintain a strong credit score in your residing country and/or India

Choose a financially stable Indian co-applicant

Avoid applying to multiple banks at once—it can hurt your credit

Ensure timely submission of complete documentation

Use reputed financial platforms like Fincrif for better loan options and support

Why Choose Fincrif for Your NRI Personal Loan Needs?

Fincrif simplifies the process of getting a personal loan in India for NRIs. Whether you're in Dubai, London, or New York, Fincrif connects you with the top Indian banks and NBFCs offering tailored personal loan solutions for your unique financial situation.

Here’s what Fincrif offers:

Instant eligibility check

Best offers from leading lenders

Loan comparison in one place

Assistance with documentation

Quick online application process

With Fincrif, applying for an NRI personal loan is easier, faster, and more transparent.

Final Thoughts

Being an NRI doesn’t mean you have to struggle to get financial support back home. Whether it’s for a family celebration, investment opportunity, or emergency expense, a personal loan can bridge the gap efficiently. By partnering with the right platform and choosing the best lender, you can secure funds at competitive rates with flexible repayment options.

At Fincrif, we help NRIs like you find the best personal loan options without any stress. So, don’t wait—explore top NRI personal loan offers today at www.fincrif.com and take control of your financial goals in India.

[sandeepposts]

Many leading banks provide personal loans for NRIs in India. These loans are broadly divided into two categories:

Secured Personal Loans: These personal loans are provided against a collateral or security. Commonly accepted collateral by banks include bank  Fixed deposits including FCNR deposits and property owned by the applicant. Most of the private and public sector banks in India provide secured personal loans for NRIs with a close relative or family member acting as a co-applicant/guarantor for the loan.

Unsecured Personal Loans: An unsecured personal loan is provided without any collateral or security. It is completely based on prospective borrower’s profile – income, current outstanding debt, Credit Score, etc. thus, involves a greater degree of risk for the lender

[sbmbankindia]

All you need to know about an FCNR Account.

Providing NRIs with lucrative returns without much hassle was the main objective with which the FCNR account was first introduced. This primary objective still holds.

What is an FCNR Account?

FCNR stands for Foreign Currency Non-Resident Account. It is a term deposit account popularly known as an FCNR deposit. These fixed deposit accounts are opened for depositing foreign currency income earned overseas. The account is maintained in the same foreign currency as deposited.

NRIs (Non-Resident Indians) and PIOs (Person of Indian Origin) are eligible to open an FCNR account with an authorized bank or dealer.

FCNR account is more beneficial to those NRIs who are sure to repatriate their funds from the account on maturity. Also, FCNR deposits are a good option for NRIs who are looking for a secure hassle-free fund deposit option in India. You can book your FCNR Account in

US Dollars

Canadian Dollars

Australian Dollars

Pound Sterling

Swiss Franc

Euro

Japanese Yen

And a few more currencies that hold global goodwill overseas.

Documents required to open an FCNR Account

Opening an FCNR account from the comfort of your residence has now become quick and hassle-free. All you have to do is get in touch with a bank’s representative, fill out the required application online and attach the following documents with it:

Proof of your NRI status (Visa or Work Permit)

Address Proof in your country of residence

Address Proof in India

Copy of your Passport and passport size photograph

Copy of your ID proof (PAN Card or Form 60)

Features of an FCNR Account

Your FCNR account gives you unmatched privileges, which compel NRIs to park their funds in India.

Term Deposit Account – FCNR account is a term deposit account which means it is opened for a fixed tenure of anywhere between 1 year to 5 years. On completion of this period, the principal amount in the FCNR account and its interest can be redeemed by the account holder. In case of premature withdrawal of funds from the FCNR account, interest will only be paid to the holder if the amount has been deposited for over 1 year.

Tax Benefit – Interest earned on the amount deposited in your FCNR account is completely tax-free in India.

Repatriation – You can repatriate the entire principal and interest amount deposited in the FCNR account. This amount is completely transferable as per the account holder’s wish.

FCNR interest rates – Avail lucrative interest rates on your FCNR account. It is beneficial for NRIs living in countries that provide a very low interest on deposits in their country of residence. Such NRIs can deposit their income in India and enjoy the benefit of higher returns. SBM Bank India provides one of the highest interest rates on its FCNR deposits.

Exchange rate fluctuation – We already know that the amount deposited in the FCNR account is maintained and withdrawn in the same foreign currency as deposited. Hence, there is no risk of exchange rate fluctuations that occur due to the conversion of funds into Indian currency while depositing and again into foreign currency on withdrawal.

Account-holders – An NRI can hold an FCNR account single-handed or jointly with 2 or more joint NRI account holders or a relative who is a resident of the Indian subcontinent. This helps you well manage your account from a distance.

Loan against account – An NRI can also apply for a loan in Indian currency keeping your FCNR fixed deposit account as collateral. Loans thus taken, can be repaid from the redemption amount of the FCNR account on maturity.

Multiple currencies – FCNR accounts are highly beneficial for NRIs, especially ones who have their business spread across various countries. An NRI can deposit multiple currencies in their FCNR account as directed by RBI.

Therefore saving your funds in FCNR deposits in India will give you higher returns and more benefits than saving your funds in the country of your residence. Keeping all this information in mind while you open your FCNR account will surely help you maximize your benefits while you transfer your funds from and into your account from any place within or outside India. SBM Bank India’s personalised banking is happy to support you in case of any assistance that you may require. Also, visit SBM Bank India to know more about our NRI saving accounts.

[sunshineweb]

How to buy/invest in 7.75% Government of India Savings Bonds?

How to buy/invest in 7.75% Government of India Savings Bonds? What are the things we have to take care of before blindly buying this 7.75% Government Of India Savings Bonds?

Features of 7.75% Government Of India Savings Bonds (Taxable)

# HUF and Individual (Single, Jointly, Either or Survivor, or on behalf of minor as a Guardian are allowed to invest in these bonds.

# This bond is not available for NRIs.

# Minimum amount is Rs.1,000 (face value of the bond) and there is no maximum limit for investment.

# The Bonds will be issued, in demat form and credited to the Bond Ledger Account (BLA) of the investor/s on the date of tender of cash or the date of realization of draft/ cheque.

What is the return of 7.75% Government of India Bonds?

The Bonds will bear interest at the rate of 7.75% per annum. Interest on non-cumulative Bonds will be payable at half-yearly intervals from the date of issue (The date of issue of the Bonds in the form of Bonds Ledger Account, will be opened (issued) from the date of tender of cash or the date of realization of draft/cheque.) or interest on cumulative Bonds will be compounded with half-yearly rests and will be payable on maturity along with the principal.

In the cumulative Bonds, the maturity value of the Bonds shall be Rs.1,703 for every Rs.1,000 face value of the bond.

Interest to the holders opting for non-cumulative Bonds will be paid from the date of issue up to 31st July OR 31st January as the case may be, and thereafter half-yearly for a period ending 31st July and 31st January on 1st August and 1st February.

Interest on Bonds in the form of “Bonds Ledger Account” will be paid, by electronically by credit to bank account of the holder as per the option exercised by the investor/holder.

The advice of payment of interest will be issued to the investor one month in advance from the due date. Maturity intimation advice will be issued one month before the due date of the bond.

Facility for payment of interest and principal by ‘demand draft free of cost or at par cheques’ for up country customers is available. The facility of the intra-bank branch and interbank branch transfer of the bonds is available.

Do remember that you can’t change the bond option in middle from Non-Cumulative to Cumulative and vice versa.

Note:-You have to receive the redemption procedure at maturity or as and when the interest is payable. The government will not pay any interest on such interest income which is not claimed or any principal amount that also not claimed by investors.

Temf of the 7.75% Government of India Bond

The bond tenure is 7 years from the date of issue. However, you can opt for premature redemption as per the Govt. Notification dated July 29, 2013, and subsequent amendment vide Notification dated August 16, 2013. It is discussed as below.

Premature encashment in respect of the Bonds shall be allowed for individual investors in the age group of 60 years and above, subject to submission of document relating to date of birth of the an investor in support of age to the satisfaction of the issuing bank, after minimum lock-in period from the date of issue as indicated below-

(a) Lock in period for investors in the age bracket of 60 to 70 years shall be 6 years from the date of issue.

(b) Lock in period for investors in the age bracket of 70 to 80 years shall be 5 years from the date of issue.

(c) Lock in period for investors in the age of 80 years and above shall be 4 years from the date of issue.

In case of joint holders or more than two holders of the Bond, the above lock-in period will be applicable even if any one of the holders fulfills the above conditions of eligibility.

After aforesaid minimum lock-in period from the date of issue, an eligible investor can surrender the bonds at any time after the 12th, 10th and 8th half year corresponding to the respective lock-in period but redemption payment will be made on the following interest payment due date.

Thus, the effective date of premature encashment for eligible investors will be 1st August and 1st February every year. However, 50% of interest due and payable for the last six months of the holding period will be recovered in such cases, both in respect of Cumulative and Non-cumulative bonds.

The Bonds are nottransferable.  The Bonds are nottradeable in the Secondary market and are noteligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions.

An earlier version of the bond period was 6 years.

Nomination facility in 7.75% Government of India Bonds

The sole Holder or all the joint holders may nominate one or more persons as a nominee. Non-Resident Indians (NRIs) can also be nominated. However, remittance of the interest/maturity proceeds will be subject to the foreign Exchange regulations prevailing at the time of remittance.

If the nomination has been made in favour of two or more nominees and either or any of them dies before such payment becomes due, the title to the Bonds shall vest in the surviving nominee or nominees and the amount being due thereon shall be paid accordingly.

In the event of the nominee or nominees predeceasing the holder, the holder may make a fresh nomination. You can make a separate nomination for each investment.

The nomination is not allowed where the bonds are held in the name of the minor. A nomination made by a holder of a Bond can be changed by a fresh nomination in Form B, or as near thereto as may be, or may be canceled by giving notice in writing to the Receiving Office in Form C,

If the nominee is a minor, the holder of Bonds may appoint any person to receive the Bonds/amount due in the event of his / her / their death during the period the nominee is a minor.

You can change the nomination as and when you need.

Taxation of 7.75% Government of India Savings Bonds

Interest income from 7.75% Government of India Savings Bonds will be taxable. However, there is no wealth tax you have to pay. Tax will be deducted at source (TDS) while interest is paid.

The Bonds will be exempt from wealth-tax under the Wealth Tax Act, 1957.

I explained basic features in below image for your easy understanding.

How to buy/invest in 7.75% Government of India Savings Bonds?

You can buy 7.75% Government of India Savings Bonds from designated branches of SBI and Associate banks,18 Nationalised banks, 3 Private Sector banks (like HDFC and ICICI Banks) and Stock Holding Corporation of India Ltd. I have listed them as below.

# State Bank Of India

# Allahabad Bank

# Bank of Baroda

# Bank Of India

# Bank Of Maharashtra

# Canara Bank

# Central Bank Of India

# Dena Bank

# Indian Bank

# Indian Overseas Bank

# Punjab National Bank

# Syndicate Bank

# UCO Bank

# Union Bank of India

# United Bank Of India

# Corporation Bank

# Oriental Bank Of Commerce

# Vijaya Bank

# IDBI Bank

# ICICI Bank Ltd.

# HDFC Bank Ltd.

# Axis Bank Ltd.

# Stock Holding Corporation of India Ltd.

The application form looks like below.

Download the Application form to buy/invest in 7.75% Government of India Savings Bonds.

Where to complain in case of 7.75% Government of India Savings Bonds?

If you have any issue with Bank regarding this bond, then you can contact RBI directly using below details.

THE REGIONAL DIRECTOR, RESERVE BANK OF INDIA, CUSTOMER SERVICE DEPARTMENT/ BANKING OMBUDSMAN (LOCATION)

Otherwise, you can also use the below address.

THE CHIEF GENERAL MANAGER IN-CHARGE DEPARTMENT OF GOVERNMENT AND BANK ACCOUNTS CENTRAL OFFICE BYCULLA, OPP. BOMBAY CENTRAL RAILWAY STATION MUMBAI- 400 008, MAHARASHTRA

7.75% Government of India Savings Bonds -Should you invest?

Let us now discuss about who should consider this bond.

# SOVERIGN GUARANTEE

The biggest positive point is that SECURITY of Government of India. No question of default risk in such bond. Hence, you can invest blindly without any doubt.

# INTEREST RATE

If you look at SBI FD Rate for 5 Yrs to 10 Yrs deposit, it is at 6%. Also, the current Post Office 5 Yrs FD rates are lower. Hence, I think this bond is definitely the BEST option who are looking for SAFETY and also the GUARANTEED return.

# GOAL-BASED INVESTMENT

I compared the interest of similar tenure products. Hence, do remember that invest in such bond only if your goal is 5 years or so. Also, if you are looking for some constant stream of income, then also you can look at such bond.

But never invest for the sake GUARANTEE and RETURN.

If your goal is more than 5 years or so, then use the products like LIC’s Jeevan Akshay VI or Pradhan Mantri Vaya Vandana Yojana. If you are a senior citizen, then you can opt for Post Office SCSS Scheme.

# TAXATION

Whatever the return you will receive from this bond is taxable and also TDS is applicable. Hence, don’t rely on 7.75% return. But try to consider the post-tax return.

Suppose your income is less than Rs.2,50,000 then the effective return will be 7.75%.

Suppose your income tax slab is at 10%, then the effective return will be 6.975%

Suppose your income tax slab is at 20%, then the effective return will be 6.2%

Suppose your income tax slab is at 30%, then the effective return will be at 5.425%

#INTEREST RATE RISK

Even though there is no default risk, there is always an interest rate risk. We don’t know the applicable interest rate after 7 years of maturity. Hence, this interest rate risk is always there.

However, considering the past trend, I am not sure that the Government will close the subscription within 4-5 years.

Go ahead to buy these bonds based on the above points. Blindly for the sake of GUARANTEE and RISK-FREE return always not works.

For a complete post, refer my old post “7.75% Government of India Savings Bonds -Should you invest?“.

Conclusion:-Due to credit Risk or Default Risk many are looking for safe investment. In such a situation, where debt products are risky and equity market down, the best option is to go for such the safest product. However, consider your actual requirement, taxation, and liquidity issue also before BLIND JUMPING.

Refer our latest posts:-

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[sunshineweb]

How to buy/invest in 7.75% Government of India Savings Bonds?

How to buy/invest in 7.75% Government of India Savings Bonds? What are the things we have to take care of before blindly buying this 7.75% Government Of India Savings Bonds?

Features of 7.75% Government Of India Savings Bonds (Taxable)

# HUF and Individual (Single, Jointly, Either or Survivor, or on behalf of minor as a Guardian are allowed to invest in these bonds.

# This bond is not available for NRIs.

# Minimum amount is Rs.1,000 (face value of the bond) and there is no maximum limit for investment.

# The Bonds will be issued, in demat form and credited to the Bond Ledger Account (BLA) of the investor/s on the date of tender of cash or the date of realization of draft/ cheque.

What is the return of 7.75% Government of India Bonds?

The Bonds will bear interest at the rate of 7.75% per annum. Interest on non-cumulative Bonds will be payable at half-yearly intervals from the date of issue (The date of issue of the Bonds in the form of Bonds Ledger Account, will be opened (issued) from the date of tender of cash or the date of realization of draft/cheque.) or interest on cumulative Bonds will be compounded with half-yearly rests and will be payable on maturity along with the principal.

In the cumulative Bonds, the maturity value of the Bonds shall be Rs.1,703 for every Rs.1,000 face value of the bond.

Interest to the holders opting for non-cumulative Bonds will be paid from the date of issue up to 31st July OR 31st January as the case may be, and thereafter half-yearly for a period ending 31st July and 31st January on 1st August and 1st February.

Interest on Bonds in the form of “Bonds Ledger Account” will be paid, by electronically by credit to bank account of the holder as per the option exercised by the investor/holder.

The advice of payment of interest will be issued to the investor one month in advance from the due date. Maturity intimation advice will be issued one month before the due date of the bond.

Facility for payment of interest and principal by ‘demand draft free of cost or at par cheques’ for up country customers is available. The facility of the intra-bank branch and interbank branch transfer of the bonds is available.

Do remember that you can’t change the bond option in middle from Non-Cumulative to Cumulative and vice versa.

Note:-You have to receive the redemption procedure at maturity or as and when the interest is payable. The government will not pay any interest on such interest income which is not claimed or any principal amount that also not claimed by investors.

Temf of the 7.75% Government of India Bond

The bond tenure is 7 years from the date of issue. However, you can opt for premature redemption as per the Govt. Notification dated July 29, 2013, and subsequent amendment vide Notification dated August 16, 2013. It is discussed as below.

Premature encashment in respect of the Bonds shall be allowed for individual investors in the age group of 60 years and above, subject to submission of document relating to date of birth of the an investor in support of age to the satisfaction of the issuing bank, after minimum lock-in period from the date of issue as indicated below-

(a) Lock in period for investors in the age bracket of 60 to 70 years shall be 6 years from the date of issue.

(b) Lock in period for investors in the age bracket of 70 to 80 years shall be 5 years from the date of issue.

(c) Lock in period for investors in the age of 80 years and above shall be 4 years from the date of issue.

In case of joint holders or more than two holders of the Bond, the above lock-in period will be applicable even if any one of the holders fulfills the above conditions of eligibility.

After aforesaid minimum lock-in period from the date of issue, an eligible investor can surrender the bonds at any time after the 12th, 10th and 8th half year corresponding to the respective lock-in period but redemption payment will be made on the following interest payment due date.

Thus, the effective date of premature encashment for eligible investors will be 1st August and 1st February every year. However, 50% of interest due and payable for the last six months of the holding period will be recovered in such cases, both in respect of Cumulative and Non-cumulative bonds.

The Bonds are nottransferable.  The Bonds are nottradeable in the Secondary market and are noteligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions.

An earlier version of the bond period was 6 years.

Nomination facility in 7.75% Government of India Bonds

The sole Holder or all the joint holders may nominate one or more persons as a nominee. Non-Resident Indians (NRIs) can also be nominated. However, remittance of the interest/maturity proceeds will be subject to the foreign Exchange regulations prevailing at the time of remittance.

If the nomination has been made in favour of two or more nominees and either or any of them dies before such payment becomes due, the title to the Bonds shall vest in the surviving nominee or nominees and the amount being due thereon shall be paid accordingly.

In the event of the nominee or nominees predeceasing the holder, the holder may make a fresh nomination. You can make a separate nomination for each investment.

The nomination is not allowed where the bonds are held in the name of the minor. A nomination made by a holder of a Bond can be changed by a fresh nomination in Form B, or as near thereto as may be, or may be canceled by giving notice in writing to the Receiving Office in Form C,

If the nominee is a minor, the holder of Bonds may appoint any person to receive the Bonds/amount due in the event of his / her / their death during the period the nominee is a minor.

You can change the nomination as and when you need.

Taxation of 7.75% Government of India Savings Bonds

Interest income from 7.75% Government of India Savings Bonds will be taxable. However, there is no wealth tax you have to pay. Tax will be deducted at source (TDS) while interest is paid.

The Bonds will be exempt from wealth-tax under the Wealth Tax Act, 1957.

I explained basic features in below image for your easy understanding.

How to buy/invest in 7.75% Government of India Savings Bonds?

You can buy 7.75% Government of India Savings Bonds from designated branches of SBI and Associate banks,18 Nationalised banks, 3 Private Sector banks (like HDFC and ICICI Banks) and Stock Holding Corporation of India Ltd. I have listed them as below.

# State Bank Of India

# Allahabad Bank

# Bank of Baroda

# Bank Of India

# Bank Of Maharashtra

# Canara Bank

# Central Bank Of India

# Dena Bank

# Indian Bank

# Indian Overseas Bank

# Punjab National Bank

# Syndicate Bank

# UCO Bank

# Union Bank of India

# United Bank Of India

# Corporation Bank

# Oriental Bank Of Commerce

# Vijaya Bank

# IDBI Bank

# ICICI Bank Ltd.

# HDFC Bank Ltd.

# Axis Bank Ltd.

# Stock Holding Corporation of India Ltd.

The application form looks like below.

Download the Application form to buy/invest in 7.75% Government of India Savings Bonds.

Where to complain in case of 7.75% Government of India Savings Bonds?

If you have any issue with Bank regarding this bond, then you can contact RBI directly using below details.

THE REGIONAL DIRECTOR, RESERVE BANK OF INDIA, CUSTOMER SERVICE DEPARTMENT/ BANKING OMBUDSMAN (LOCATION)

Otherwise, you can also use the below address.

THE CHIEF GENERAL MANAGER IN-CHARGE DEPARTMENT OF GOVERNMENT AND BANK ACCOUNTS CENTRAL OFFICE BYCULLA, OPP. BOMBAY CENTRAL RAILWAY STATION MUMBAI- 400 008, MAHARASHTRA

7.75% Government of India Savings Bonds -Should you invest?

Let us now discuss about who should consider this bond.

# SOVERIGN GUARANTEE

The biggest positive point is that SECURITY of Government of India. No question of default risk in such bond. Hence, you can invest blindly without any doubt.

# INTEREST RATE

If you look at SBI FD Rate for 5 Yrs to 10 Yrs deposit, it is at 6%. Also, the current Post Office 5 Yrs FD rates are lower. Hence, I think this bond is definitely the BEST option who are looking for SAFETY and also the GUARANTEED return.

# GOAL-BASED INVESTMENT

I compared the interest of similar tenure products. Hence, do remember that invest in such bond only if your goal is 5 years or so. Also, if you are looking for some constant stream of income, then also you can look at such bond.

But never invest for the sake GUARANTEE and RETURN.

If your goal is more than 5 years or so, then use the products like LIC’s Jeevan Akshay VI or Pradhan Mantri Vaya Vandana Yojana. If you are a senior citizen, then you can opt for Post Office SCSS Scheme.

# TAXATION

Whatever the return you will receive from this bond is taxable and also TDS is applicable. Hence, don’t rely on 7.75% return. But try to consider the post-tax return.

Suppose your income is less than Rs.2,50,000 then the effective return will be 7.75%.

Suppose your income tax slab is at 10%, then the effective return will be 6.975%

Suppose your income tax slab is at 20%, then the effective return will be 6.2%

Suppose your income tax slab is at 30%, then the effective return will be at 5.425%

#INTEREST RATE RISK

Even though there is no default risk, there is always an interest rate risk. We don’t know the applicable interest rate after 7 years of maturity. Hence, this interest rate risk is always there.

However, considering the past trend, I am not sure that the Government will close the subscription within 4-5 years.

Go ahead to buy these bonds based on the above points. Blindly for the sake of GUARANTEE and RISK-FREE return always not works.

For a complete post, refer my old post “7.75% Government of India Savings Bonds -Should you invest?“.

Conclusion:-Due to credit Risk or Default Risk many are looking for safe investment. In such a situation, where debt products are risky and equity market down, the best option is to go for such the safest product. However, consider your actual requirement, taxation, and liquidity issue also before BLIND JUMPING.

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