Car Loans for Non-Resident Indians (NRI)
The number of NRIs who apply for car loans has increased recently. The craze for a luxurious car and frequent visits to the country are the two main reasons why most of the NRIs go for a car loan application. Indian citizens who reside abroad or have NRI status can apply for a car loan. Read on to know more about the eligibility, required documents, terms, and conditions to obtain a car loan.
Following are the common eligibility criteria laid down by most of the banks.
• The NRI must have an Indian resident as a guarantor or a co-applicant.
• The applicant and guarantor/co-applicant should be at between 21 to 65 years old.
• The loan must be repaid before the applicant turns 65 years old.
• You should be employed abroad for at least for 2 years.
• You should hold a valid Indian Passport.
• Proof of steady source of income.
• Should have NRI account with the bank applied for the loan.
• The copy of valid work permit and employment contract.
You can submit the documents either at the branch of your residing country or sent it online or sent it through your co-applicant.
Features of Car Loans for NRIs
• Your loan amount is approved based on your income. The amount eligible could be 18 times more than your net income
• Loan to Value (LTV): It is the ratio of the loan amount to the actual value of the car. Most banks offer 80-100% of the ex-showroom price
• Repayment can be made through remittances from abroad through normal banking channels
• Most banks offer zero prepayment penalty
• The interest rate is same as offered to the resident Indians.
• Most banks charge up to 11% of interest rate
• Terms and Conditions of Car Loans for NRIs
• You may not be able to buy the vehicle on your name. Most banks approve your car loan on your co-applicants name.
• Every bank has its own list of countries for approval. NRIs residing in UK, USA, Singapore, Malaysia and West Asian countries have higher chances of loan approval.
• You should have a certain amount of income as mandated by the bank.
• Tenure of the repayment is between 5 to 7 years.
• The vehicle will be registered under the applicant or co-applicants name who has a local residential proof
An NRI who fulfills above conditions can go ahead and apply for a car loan. To check your eligibility to avail various loans click here.