Going for NRI credit cards? Look beyond these perks

Published 20 June 2026 · finance

Can NRIs get an Indian credit card without a fixed deposit? How an Indian credit card can help maintain your CIBIL score Charges and features

Can NRIs get an Indian credit card without a fixed deposit? How an Indian credit card can help maintain your CIBIL score Charges and features NRIs must check before getting an Indian credit card How do Indian credit card repayments work for NRIs? FEMA, KYC, and compliance issues NRIs should know For many non-resident Indians (NRIs), credit cards issued in their country of residence are often the primary payment tool. These cards offer rewards, travel benefits, and seamless spending abroad.Yet, when it comes to expenses in India, whether paying utility bills, managing family spending, booking domestic travel, or maintaining a credit profile for future borrowing, an Indian credit card can play a surprisingly important role.Experts say Indian credit cards can help NRIs build a credit history in India, simplify rupee-denominated spending, and support future borrowing needs. However, they also come with considerations around forex charges, repayments, FEMA (Foreign Exchange Management Act) compliance and taxation that users should understand before applying.Until a few years ago, fixed deposit-backed credit cards were often the default option available for many NRIs. That is gradually changing.“Eligible NRIs can now obtain unsecured Indian credit cards from several banks without pledging a fixed deposit. Approval, however, is typically linked to factors, such as income, banking relationship, documentation, and the bank’s internal credit assessment,” says Adhil Shetty, CEO, BankBazaar.That said, fixed deposit-backed cards continue to be an accessible route for many applicants, particularly those who do not have an established banking relationship in India or sufficient income documentation.For NRIs who already maintain NRE (non-resident external) or NRO (non-resident ordinary) accounts, approaching the same bank for a credit card may improve the chances of approval, as existing relationships can simplify verification and onboarding.One of the most overlooked benefits of holding an Indian credit card is its impact on your credit history in India.Many NRIs assume that a strong credit score in the US or another country will automatically help them secure loans in India.

Unfortunately, that is not how the system works.Indian lenders rely primarily on Indian credit bureau data when assessing borrowers, points out Raj P. Narayanam, Executive Chairman, Zaggle.“A CIBIL score is built on Indian credit behaviour, reported by Indian lenders to Indian bureaus. An NRI’s impeccable US credit history means nothing to a bank in Mumbai evaluating a home loan application,” he says.This can become particularly important for NRIs who plan to buy property in India, take a loan against property, finance a business venture, or eventually return to India.“If an NRI holds an active Indian credit card, uses it regularly, even for small recurring transactions like OTT subscriptions or utility payments, and pays the bill on time every month, they are systematically building a credit footprint in India that will serve them when it matters most,” says Narayanam.The difference between a CIBIL score of 650 and 780 can directly influence interest rates, loan eligibility, and negotiating power with lenders, he adds.For many NRIs, keeping one active Indian credit card may be one of the simplest ways to ensure their Indian credit history does not become dormant.Credit card marketing often highlights airport lounge access, reward points, and welcome bonuses.But experts suggest looking beyond the promotional material.The single most important feature for frequent India-US travellers is often the one that receives the least attention: forex mark-up, according to Narayanam.Most Indian credit cards charge between 1.5% and 3.5% on international transactions. For someone spending Rs 10-15 lakh annually across currencies, these charges can quietly erode a substantial amount of money.“A low or zero forex markup card should be the non-negotiable baseline before evaluating anything else,” he says.Once forex costs are addressed, travellers should evaluate travel insurance benefits, including coverage for medical emergencies, trip cancellations, and lost baggage.