Car loan for NRI

Recent times have seen a dramatic increase in the demand for car loans in NRIs. This is due to two main factors: the tendency to buy luxury cars and the increasing frequency of visits to India. An Indian citizen who lives abroad and is a paid employee or who works in his or her country of residence qualifies for an NRI and is eligible to apply for an NRI car loan.

NRI Car Loan Eligibility

• NRIs with Resident Indian as guarantor can apply.
• Both the applicant and the certificate, must be at least 21 years old and not older than 65 years.
• The loan must be repaid when the applicant is 65 years old.
• NRI Car Loan Documents are required
• Valid Indian passport
• Proof of a strong source of income
• The borrower should have a minimum of 2 years of work history abroad
• A valid employment contract or work permit
• Has an NRI account with the Bank

Features and Benefits of NRI Vehicle Loans

• Documents: Documents can be submitted to the bank branch in your country, or sent online or through an applicant.
• Loan amount: The amount of loan to be allowed depends on the bank concerned.
• Loan (LTV): LTV is the average loan that can be borrowed from the bank to the actual value of the car or its pre-show value. Most banks offer 85-100% of the pre-showroom price as a loan.
• Duration: Loan term of between 5 and 7 years, from the date of purchase.
• Interest rate and other charges: There is no difference between the interest rate on NRI car loans and what is offered to Indians living there. Eg, the interest rate on car loans is 10.45%, and this applies to both Indian residents and NRIs.
• Fees: Payments can only be made through payments made through regular banking channels/receipts from accounts outside India / non-residential accounts or from income earned in assets in India. Indigenous Indians can repay loans on behalf of their NRI relatives.

NRI Car loan Interest Rates

City Union Bank Car Loan Interest Rates applicable to Indians living there also apply to NRIs. There is no difference in this. The interest rate on car loans is 10.45%, and this applies to both Indian residents and NRIs.

How to Calculate the EMI for your NRI Car Loan?

The Car Loan EMI calculator is an easy-to-use tool that calculates the monthly installments that must be paid by the bank and the costs incurred. To use this, include details such as the principal loan amount, interest rate, loan in years or months, additional monthly payments, if any, etc. Then click on "Calculate" for full details of the payment plan.

Necessary conditions to be followed before obtaining an NRI car loan

Guarantor Required

Many banks require NRIs to have an Indian guarantee while applying for a loan. The NRI can make a payment using an NRI account (NRE / FCNR (B) / NRO bank accounts) or the Car Loan amount can be paid by remittance. Besides, there is a condition that both their NRI and certification age will need to be between 21 and 65 years.

Other Conditions Are Used

In addition to having a guarantee when applying for a loan, there are other conditions set by different lenders when providing a car NRI loan:

• Must have at least 3-5 years with the bank
• The country in which you live should be listed in a country approved by the bank
• NRI income should not be less than USD 1000 in the afternoon or USD 12,000 pa
• Must have a valid Indian passport
• Must have a work permit in the country where he lives
• He must be employed for at least two years in the country of residence

Benefits Provided

Although there are many rules and regulations when obtaining a Car Loan through NRIs, there are many benefits to being offered:

• Documents related to the loan application can be submitted to India, overseas, or through the online portal
• The current NRI loan period is 5-7 years
• The interest rate on NRI car loans is similar to the standard car loan in India
• Loan-to-Value (LTV) rate provided to Banks on NRIs is 85-100%