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.
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:
SBI NRI car loan interest rate
|Interest rate (fixed rate)||7.70% to 8.40% p.a.|
|Processing fees (for new vehicle)||Rs. 999 + GST (Till 30.09.2021)|
|Security||Hypothecation of vehicle and recording of vehicle hypothecation charges in the books of the RTO (Regional Transport Office)|
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
|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
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
|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
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
|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|
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:
- Daughter in law
- Sister in law
- Sister of spouse
- 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
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.
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.
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.
SBI NRI car loan interest rate ranges from 7.70% to 8.40% p.a.