People in India are inclining towards buying more and more luxurious cars. As many international car brands are getting into the Indian market, NRIs are inclining towards buying them. They can now drive the same cars in India which they drive in their residing nations abroad. Many NRIs buy cars for their families in India or to use them during their visit to India. They either buy a brand new car or a second hand/used car as per their convenience. To buy a luxury car can be an expensive affair for an NRI. Thus many banks and NBFCs offer special car loans for NRIs as per their requirements.
Here are the special features and benefits of NRI car loan:
- Banks and NBFCs require very specific set of documents for NRI car loan. These include valid Indian passport, proof of a steady source of income, valid job contract or work permit, should have an NRI account with the Bank.
- Also the eligibility criteria listed by banks and NBFCs for NRI car loan is quite rigid. The loan applicant must be employed abroad for at least two years, a resident Indian as a guarantor is required and both applicant and guarantor should be at least 21 years old and not more than 65 years old.
- The NRI car loan has to be repaid by the time the applicant is 65 years old.
- The loan amount approved by the bank or NBFC depends on the current value of the car and the profile of the loan borrower.
- The loan tenure for NRI car loan ranges from 5 to 7 years.
- The interest rate for NRI car loan starts from 10.45%.
- The loan repayment is done in the form of EMIs from NRIs’ residing countries via non-resident rupee (NRE), normal banking channels, or a non-resident ordinary rupee account (NRO).
- The loan repayment amount is accepted only in Indian rupees not in the currency of their residing countries.
- Some banks and NBFCs allow Indian residents to repay the NRI car loan on behalf of their NRI relatives.