NRI Car Loan in India: Eligibility & Interest Rates

NRIs who work in foreign countries always wish to buy a dream home and a swanky car in India. This is the reason, a sharp rise in the demand for car loans from NRIs has been seen in recent times. To help NRIs fulfil their dreams, many Indian lenders are offering them NRI home loans and car loans at attractive interest rates. Indian citizens who reside abroad for a job or business can get an NRI car loan in India.

NRI Car Loan in India: Eligibility & Interest Rates
NRI Car Loan in India

Also Read: NRI Home Loan Interest Rate 2021: Top 10 Lenders

NRIs can get a car loan for purchasing a new car as well as a used car. All lenders have a list of approved countries, NRIs living in these countries can get a car loan from a bank based on the approval. Countries like the US, UK, Malaysia, Singapore and many West Asian nations are commonly approved. 

Top banks for NRI car loan in India

Here are some of the top banks that provide a car loan to NRIs, such as State Bank of India, Federal Bank, South Indian Bank, Bank of Baroda, etc. 

SBI NRI car loan

State Bank of India offers a car loan to NRI customers, but an NRI can’t have the vehicle registered in his/ her name. The NRI applicant will be considered as the guarantor. However, the NRI applicant will be responsible to pay the EMIs for the car loan out of his NRI bank account. Hence the person in whose name the car is registered will be treated as the co-applicant in the loan. 

SBI NRI car loan key features

Here are the key features of SBI NRI car loan:

  • The loan amount will depend on the applicant’s income (no ceiling)
  • The maximum loan amount is 18 times the net monthly income
  • The loan must be repaid within 7 years from the date of purchase of the car
  • Repayment from:
    • Remittance from abroad through normal banking channel
    • From NRE/ NRO/ FCNR accounts of the applicant
    • Remittance from local funds by a close relative of NRI

SBI NRI car loan interest rate

ParticularsInterest rates
Interest rate (fixed rate)7.70% to 8.40% p.a.
Processing fees (for new vehicle)Rs. 999 + GST (Till 30.09.2021)
SecurityHypothecation of vehicle and recording of vehicle hypothecation charges in the books of the RTO (Regional Transport Office)
Prepayment chargesNil
SBI NRI car loan interest rate

Also Read: SBI NRI Home Loan 2021-22: Latest Interest Rates and Benefits

South Indian Bank NRI car loan

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

Key features of South Indian Bank NRI car loan

  • The loan amount ranges from Rs. 1 lakh to Rs. 100.00 lakh (for a new car) and Rs. 50.00 lakh (for a used car)
  • The loan tenure ranges from 12 months to 84 months
  • Margin is 10 – 20% for new vehicles and 25% for used vehicles

South Indian Bank NRI car loan interest rate

ParticularsInterest rates
Interest rate (floating rate)Repo rate + 5.05% to Repo rate + 11.00%
Processing fees 1% of the loan amount subject to max of Rs. 10,000
Prepayment charges– For up to 12 months: 2% of the prepaid amount
– Above 12 months: 1% of the foreclosed loan amount
South Indian BankI NRI car loan interest rate

Federal Bank NRI car loan

With Federal Bank, NRI customers can get a car loan up to 100% of the ex-showroom price. You can get a car loan for buying a new car, used car and new two-wheelers. 

Key features of Federal Bank NRI car loan

  • Attractive interest rate
  • Simple and fast processing
  • Free personal accident insurance for up to Rs. 10 lakh for individuals
  • Zero foreclosure charges 
  • Reimbursement within 1 month of car purchase date
  • Longer repayment tenure up to 84 months
  • Loan is available for buying a new car, used car and new two-wheelers 

Federal Bank NRI car loan interest rate

ParticularsInterest rates
Interest rate (floating rate)– Starting from 8.50% (new car) 
– 13.80% (used car)
Processing fees – New car: Rs. 2,000 to Rs. 4500
– Used car: Rs. 3,000 to Rs. 5500
Prepayment chargesNil
Federal BankI NRI car loan interest rate

Also Read: Federal Bank NRI Home Loan 2021-22: Interest & benefits

Bank of Baroda NRI car loan

NRIs can get a car loan from Bank of Baroda to drive home their dream car. You will need to add a resident Indian (a close relative) to act as the guarantor for Bank of Baroda NRI loan. The car will be registered in the name of the Indian resident who has a local residential address proof. 

Key features of Bank of Baroda NRI car loan

  • Competitive rate of interest for a car loan
  • Higher loan amount up to Rs. 100 lakh 
  • Longer tenure up to 84 months
  • Finance up to 90% of on-road price 
  • Interest is calculated on a daily reducing balance
  • No prepayment/ foreclosure charges 
  • No advance EMI

Bank of Baroda NRI car loan interest rate

ParticularsInterest rates
Interest rate– For car: BRLLR + SP + 0.25% to BRLLR + SP + 3.25% (as per risk rating) 
– For two-wheeler: BRLLR + SP + 4.00% 
Processing fees 0.5% of loan amount subject to min: Rs. 2,500 and max: Rs. 10,000
Prepayment chargesNil
Bank of Baroda NRI car loan interest rate

Aslo Read: Bank of Baroda NRI Home Loan 2020-21: Interest & Benefits

NRI car loan eligibility 

Although eligibility criteria vary from bank to bank, here are the basic eligibility criteria for a car loan for NRIs:

  • NRI (Borrower) applicant with a resident Indian as a guarantor
  • Age of both applicant and guarantor should be between 21 – 65 years
  • Car loan must be paid off before the borrower reaches the age of 65 years
  • The applicant must have an Indian passport valid for at least next 6 months 
  • The applicant should have a steady source of income 
  • The EMI (Equated Monthly Installment) and NMI (Net Monthly Income) percentage should not be more than 50% for a car loan
  • Should be employed abroad for a required period
  • Must have a valid job contract/ work permit
  • You should have a minimum average balance in your NRI bank account
  • You should have an NRE/ NRO account 

Eligibility criteria for guarantor 

The guarantor, a resident Indian, for an NRI car loan should be a close relative of the NRI as under:

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


Here is the checklist of documents required to apply for NRI car loans in India:

  • NRI car loan application form
  • Hypothecation agreement 
  • Declaration Form

For NRI applicant 

  • Passport size photographs 
  • Photocopy of passport page containing visa stamp
  • Copy of visa/ work permit 
  • Employment contract copy
  • Latest salary certificate or proof of income in case of self-employed/ professions, such as ITR/ Tax Residency Certificate
  • Copy of identity card issued by the employer
  • Residential proof such as driving license/ utility bill, etc. 
  • Copy of Continuous Discharge Certificate (CDC) if the applicant is employed in the merchant navy 
  • Power of Attorney, if required, in bank’s standard format duly stamped and notarized or attested by Indian Embassy/ Consulate

For guarantor (Resident Indian)

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

Also Read: Personal Loan for NRI: Eligibility and Interest Rates

SBNRI: NRI Indian Friend

If you want to get a car loan in India, you can get in touch with us. We at SBNRI are here to help you out with everything related to NRI car loans in India and other financial and legal services required by NRIs. 

You can download SBNRI App to connect with our experts and get end-to-end assistance related to a car loan for NRIs.

You can also click on the button below to ask any questions. Visit our blog and YouTube Channel for more details.

Ask Indian Friend Now


Can NRI take car loan in India?

Indian citizens living abroad can get an NRI car loan with a resident Indian as a guarantor. Both the NRI applicant and resident Indian guarantor should meet the eligibility criteria. The loan should be repaid by the specified period.

What is the minimum monthly income required for an NRI customer to get a car loan?

The minimum monthly income required to get an NRI car loan varies from bank to bank. For example, minimum net monthly income of USD 1000/- or minimum net annual income of USD 12000/- is required to get a car loan from SBI. 

What is the SBI NRI car loan interest rate?

SBI NRI car loan interest rate ranges from 7.70% to 8.40% p.a.

Copy link