Give Details

Personal Loan for Merchant Navy

The origin of the title “Merchant Navy” came about when British cargo ships, primarily used for trading, participated in the second world war were termed the Merchant navy by King George V. Since then the term Merchant marines has been coined for seafarers employed on these vessels.

The Merchant Navy as its name denotes is a commercial form of seafaring & is often confused with the Indian Navy which is purely a military organization under the Defense services of India.

The commercial shipping industry today is a booming one. Established shipping companies whether privately owned, or as a part of the government sector have their fleet which operate worldwide & can operate as;

  • Cruise Ships & Luxury Liners.

  • Container ships built for carrying specific cargo.

  • Tanker Ships of all sizes for carrying Oil, gas, & Chemicals.

  • Bulk Carriers used for carrying large quantities of ores, grain and coal.

  • Modern Ferries deployed for transporting passengers for short distances.

  • Specialized vessels used for the offshore Gas & Oil industry.

Officer & crew members of the Merchant marine ships have to be trained & certified as specified by the International Convention on Standards of training, Certification and Watch keeping.

All Certifications being recognised internationally there are no restrictions on ships being managed by officers from any part of the world, Indian crew & officers besides being employed on Indian vessels are also working on Ships registered in other countries.

A career in the merchant navy is lucrative one, though it has its own share of hardships. Sailing the high seas from one port to another for days at length, facing stormy seas & rough weather conditions can be a harrowing experience.

Living the unconventional life has its compensations: Salary earned by Merchant Navy officers are as per International standards Indian seafarers working for Indian companies are paid salary in Indian Currency while Indian citizens working for Companies registered under a foreign flag will get salary as per the international currency.

Leading Banks now recognize the profile & financial security of Merchant Navy persons. Finance is easily available to Merchant Navy officers & crew via a Personal Loan for an emergency or fund lifestyle expenses.

Major Banks Processing Personal Loans For Merchant Navy

Personal Loan for Merchant Navy from HDFC Bank
Personal Loan for Merchant Navy from ICICI Bank
Personal Loan for Merchant Navy from ICICI Bank

Rate of Interest for Merchant Navy Employees

Loan Provider Rate of Interest Processing fees Tenure
HDFC BANK 15.50% 2% 12 TO 60 MONTHS
ICICI BANK 15.50% 2% 12 TO 60 MONTHS
CITI BANK 15.00% 2% 12 TO 60 MONTHS
*Disclaimer : Rates are liable to change as per revision by the Bank.
Loan Amount Rate of Interest Processing fees Tenure
Rack rate for 1lac to 5 lac 15.50% 1% 12-60 months
Discount for 5 Lac to 9.99 lac 13.99% 1% 12-60 months
Special offer for 10 lacs + 11.49% 1% 12-60 months

Criteria for availing personal loan for Merchant Navy Personnel

Taking into account that a Merchant Navy applicant will be away from home for a length of time up to 6 months when employed & sailing on a ship they are give an NRI (non resident Indian) status. Therefore Banks issuing Personal Loans to Merchant Navy Personnel have established specific criteria that need to be fulfilled to be eligible for a Personal Loan.

The net salary of the applicant should be above ₹ 100000/- per month. This amount should be credited to the Salary account of the applicant. If the applicant is working in a foreign company salary is being paid in a foreign currency it should convert to equal amount or more in Indian rupees (₹).

The current residence of the applicant should be self or family owned. A Proof of ownership will be needed to verify the same.

The applicant should have been employed previously with the same company for the previous contract & should have a valid letter for the renewal of the next contract .The next contract letter should clearly state the joining date.

The Company with which the Candidate is employed should have an office in a Metro city in India. This is required for verification purposes. The Bank will conduct a check to verify the employment details & documents submitted.

The applicant should be an Indian Passport holder. Copy of the passport with a valid visa is to be submitted with the documents.

A co applicant is mandatory in all merchant navy cases, the Mother/Father/Wife can be taken as a co applicant. The co applicant details & documents are to be submitted along with the primary applicant. The co applicant should be available & contactable for any queries, if the primary applicant is on the ship.

Eligibility Criteria for Merchant Navy Personal Loan

  • The Applicant should be a citizen of India.

  • The Age of the applicant should be above 21 years

  • A job continuity of 1 year or more is necessary.

  • The CIBIL score should be above the minimum basis points required by the Bank.

Advantages of A Personal Loan

  • A Personal Loan is easy & convenient finance available at the time of need.
  • It is an unsecured Loan forwarded without any guarantee or collateral.
  • A Personal Loan is flexible & can be paid back in easy Installement.

  • An application for a Personal Loan is processed within 3 working days; funds once approved will be transferred directly to the Bank account of the Applicant.

Funds achieved via a Personal Loan can be used for any Personal requirement such as any of the following:

  • Expense for a Wedding or any celebration in the Family

  • For a Medical Emergency, or if funds are required treatment of an Illness

  • For Educational expenses, payment of school fees & further studies

  • Travel expenses or a Family holiday

  • Purchase of electronic Gadgets

  • Home renovation or additional construction

For further details on use of a Personal Loan please read our blog

Personal Loan Policy

  • Personal Loan amounts sanctioned starting from 50k to 20 lacs.

  • Loan tenure from 12 months to 60 months.
  • A fixed Rate of Interest is charged @ monthly reducing balance.

  • The EMI for personal loan tenure remains constant for the tenure granted.

  • The payment of the personal loan is by deduction through ECS from the salary account on a fixed date for the entire tenure.

  • Pre closure & part payment facilities are applicable as per the Policy of the concerned Bank.

Personal Loan Process

Identify The Bank

When applying for Personal Loan, apply to the Bank which is most favourable to your case. Applying to many Banks at the same time can damage your CIBIL Score & credit history.

There are a number of factors involved in identifying the right Bank to apply to: these include having an existing relationship with the Bank & the best terms & conditions offered. For detailed information check our blog on how to choose the right Bank to apply for personal loan.

Prepare Documents

A personal Loan being an unsecure loan complete emphasis is given to Documentation so take care of the following:

  • List of Documents should be complete as per the Documents specified.

  • Clear & updated copies need to be submitted to the Bank so that there is no delay in processing.

  • All documents should be self attested & true copies submitted in person.

  • The Bank application form should be duly filled & signed.

Loan Amount

The loan amount required as per the need may be applied for; the Bank will sanction the amount as per its own eligibility calculators. Salient points taken into consideration while sanctioning loan amount include the following:

The net annual income is divided across the year taking into account the number of earning months & the months the applicant has been on leave.


If the applicant is a first time loan seeker the Bank will be conservative in sanctioning large loan amounts. The credit card dues & other EMI’s is paid will also be taken into account for calculating eligibility for the Loan amount.

Process of Loan Application

Most Banks & NBFC’S take up to 72 hours to process a Personal Loan application. Within this time period the Bank checks all documents to be true copies, checks the CIBIL record of the applicant & conducts physical/tele verification at the home & office premise of the applicant.

The underwriter then takes the final decision. Henceforth the applicant is informed about the status of his Personal Loan request.

Finally an agreement is signed between the lending Bank & the applicant .The agreement specifies all terms & conditions under which the loan amount has been approved. Security cheques are required to be submitted with the signed agreement.

The Loan amount is then credited to the Salary account of the applicant.

The EMI for payback of the Personal Loan will henceforth be deducted from the salary account through ECS as per the specified date.

If the applicant from the Merchant Navy is employed with a foreign company the Loan amount approved is then disbursed to the Bank account of the co applicant which is a resident Indian account.

The EMI will be deducted from the account of the Applicant which is a NRE account to which the salary is transferred.

Representative example of Charges for a Personal Loan of 1 lakh

Loan amount ₹ 100,000
Processing fees Nil to ₹ 2000/-
EMI for 36 months tenure @ 14% ₹ 3417/- monthly
Preclosure charges as per individual policy of the Bank
Stamp duty & taxes levied as per government rules & regulations  

Personal Loan Documents For Merchant Navy

Income Documents

  • 3 months salary slip

  • Bank Statement for the last 6 months.

  • Copy of Continuous discharge certificate (CDC).
  • Previous & current Contract letter with date of joining mentioned.
  • Passport copy with valid visa.

KYC Documents

  • Pan Card Copy
  • Aadhaar Card Copy
  • Current address Proof
  • Ownership Proof of residence (Electricity Bill, Water Bill, Copy of Registry)
  • 2 passport size photographs.

Documents for Co Applicant

  • Bank Statement for 6 months of NRI Account

  • KYC Documents

    • Pan Card
    • Aadhaar card/ driving Licence/Passport Copy

Other Personal Loan Charges

Rate of Interest 10.99% – 18%
Processing fees 0% up to 2%
Preclosue charges As per Bank policy
Other Charges incurred for a Personal Loan
Loan cancellation charges Nil (However the processing charges will not be re funded.
Interest will be charged on the interim period of loan closure.
Cheque Bounce Charges Rs 550/- per cheque Bounce.
Charge for late payment 2% per month from date of unpaid EMI
Cheque swapping charges Rs 500/-
Amortization Schedule charges Rs 200/-
Stamp Duty At actual as per applicable law
CIBIL report copy charge Rs 50/- per copy.
Service Tax/Other Taxes At actual applicable presently or in the future.
Legal,reposession & incidental charges At actual.

Frequently Asked Questions

Minimum work experience of 2 years is mandatory before applying for a Personal loan.

All Indian nationals regularly employed with an India based or a foreign company are eligible to apply for Personal loan.

The terms & conditions of a Personal Loan for Merchant Navy officers are different because of the nature of employment. As per the contract of an applicant working in the merchant navy is required to work continuously on board a Merchant Navy vessel for 6 to 8 months in a year after which he is relived of duties for 4 months.

The minimum salary requirement for a merchant navy applicant is ₹ 80 k per month.

The applicant should be an Indian Passport holder. Copy of the passport with a valid visa is to be submitted with the documents.

A merchant navy applicant is treated as an NRI for processing of a Personal loan.

The best time for a Merchant Navy officer to apply for a Personal loan is at the time of sign off of the current contract.

The loan amount sanctioned is ₹ 1 lakhs & the maximum amount is ₹ 20 lakhs.

Either the spouse or the parents of the applicant are required to be the co applicants, for the Personal loan.

To achieve a Personal loan an applicant employed in Merchant navy must have a self owned or family owned residential property.

A Merchant navy applicant working with a foreign company must have a NRE or an NRI account to which the salary is transferred month on month.

If the applicant is working in an Indian company earning salary in Indian currency the Personal Loan amount approved will be transferred to the salary account. Whereas if the applicant is working with a foreign company; the approved amount will be transferred to the account of the co applicant.

It is not mandatory for a Merchant navy employee to have CIBIL score.

A Merchant navy applicant should hold a valid passport with a valid visa as part of the mandatory requirement for processing of a Personal Loan.