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NRI Car Loan in India: Eligibility & Interest Rates

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20 Dec 2021 | 5 min read

NRIs who are employed in foreign countries, always wish to buy a dream home and a car in India. This makes them a sharp rise in the demand for car loans from NRIs, as has been seen in recent times. It helps NRIs to fulfill their needs simply. As many lenders are offering NRI car loans and home loans at an attractive interest rate. Indian citizens residing abroad for a job or business can get an NRI Car Loan in India.  

NRIs can avail of a car loan for purchasing a new car as well as a used car. The lenders have a list of approved countries, NRIs living in these countries can avail of a car loan through any lender based on the approval. Applicants living in the US, UK, Malaysia, Singapore, and other west Asian nations are commonly approved.  

Read More:- Ways to Get Trouble-free Car Loans

Top banks for NRI Card Loan in India  

There are some of the top banks providing a car loan to NRIs, such as State Bank of India, Federal Bank, South Indian Bank, Bank of Baroda, Federal Bank of India, and more.  

  • SBI NRI Car Loan  

State Bank of India offers a car loan to NRIs, but an NRI can’t have the vehicle registered in their name. The NRIs will be considered as the guarantor. Thus, the NRIs will be responsible to pay the EMIs for the car loan out of his NRI Bank account. Apart from this, the person whose name me the car is registered will be known as the co-applicant.  

  • South Indian Bank NRI Car Loan  

South Indian Bank provides a car loan to NRI customers for purchasing a new car, a second-hand car, or reimbursement for newly purchased cars. If the applicant is an NRI, one local co-applicant is mandatory whether earning or non-earning.  

  • Federal Bank NRI Car Loan  

With Federal Bank, NRI Customers can avail of a car loan up to100% of the previous showroom price. You can avail of a car loan for buying a new car, used vehicle, and a new two-wheeler, and more.  

  • Bank of Baroda NRI Car Loan  

NRIs can easily avail of car loans from the Bank of Baroda at low interest rates. The only thing they need to do is to add a resident Indian to act as a guarantor for the Bank of Baroda NRI Car Loan.  

Read More:- 4 Helpful Hints for Best Car Loan

Eligibility Criteria of NRI Car Loan 

Multiple ways help you to check the eligibility criteria of the bank. Some basic eligibility criteria vary from bank to bank for a car loan for NRIs:  

  • NRI applicant offers a resident Indian as a guarantor.  
  • The age of both the applicant and a guarantor should have a minimum age of 21 years and maximum age of 65 years.  
  • The car loan must have an Indian passport valid for a minimum of 6 months.  
  • The EMI (Equated Monthly Installment) and NMI (Net Monthly Income) percentage should not be more than 50% for a car loan.  
  • The applicant should be employed abroad for a required period.  
  • One should have a valid job contract/work permit.  
  • One should have a minimum average balance in their NRI Bank Account.  
  • One should have an NRE/NRO account.  

Raed More:- The Expanding Market of Car Loans

Eligibility criteria for a guarantor  

The guarantor should be an Indian resident, for an NRI Car Loan he/she should be a close relative of the NRI are listed below:  

  • Parents  
  • Spouse  
  • Son 
  • Daughter  
  • Daughter-in-law 
  • Sister of the spouse  
  • Sister-in-law 
  • Brother  
  • Brother of the spouse 

Documents required for NRI Car Loan  

Listed below are the documents required for the applicants to apply for NRI Car Loans in India:   

  • NRI Car Loan application form  
  • Hypothecation agreement  
  • Declaration form  

For NRI Applicants  

  • Submit passport size photographs  
  • Photocopy of passport page containing visa stamp  
  • Copy of visa/work permit  
  • Employment contract copy  
  • Copy of identity card issued by the employer  
  • Latest salary certificate of proof of income for self-employed/ professionals like ITR/ Tax residency Certificate.  
  • Residential proof like driving license/ utility bill, and more.  
  • Power of Attorney in bank's standard format, duly stamped and notarized or attested by Indian Embassy/Consulate if the applicant is working in the merchant navy  
  • Copy of Continuous Discharge Certificate (CDC) if the applicant is engaged in the merchant navy. 

For guarantor  

  • Passport size photographs  
  • Copy of passport/ voter’s ID/ PAN Card  
  • Proof of residence  

Conclusion  

If you need to get a car loan in India, you can get in touch with Afinoz. We at Afinoz are here to help you out with complete details related to NRI car loans in India and other financial and legal services required for NRIs. You can also download the Afinoz app to connect with our experts and get end-to-end services related to NRI car loans in India. You can also click the button below and ask any query and visit our blog section at Afinoz.com.  

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