A major misunderstanding noticed among overseas Indians who wish to avail a car loan can be had from the bank without involvement of any others. It is mandatory requirement for every NRI loan could be passed only if person has a close relative who will be the principal applicant. More clearly, the actual Borrower or applicant should be a resident Indian of the NRI Guarantor.
SBI NRI Car Loan Scheme For New Vehicle
SBI has a convenient car loan schme for overseas Indians -NRI Car Loan- that can be availed if the Borrower will be a Resident Indian who is a close relative of sponsoring NRI / PIO who would be the Guarantor.
Under the NRI – Car Loan Scheme the NRI/PIO will be the Guarantor and the nominee of NRI / PIO will be the principal applicant. The car loan will be granted at the request of Guarantor (NRI/PIO).
Purpose of SBI NRI Car Loan Scheme
Purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs.
Eligibility for SBI NRI Car Loan Scheme
1. Common For Borrower & Guarantor
Age: 21- 65 years (for both). Loan to be repaid before the guarantor turns 65 yrs of age.
2. For Borrower - Resident Indian
- An individual/agriculturist/professional or self employed/student etc or doing business with economic activity.
- A parent of the NRI/PIO receiving pension or inward remittance at regular intervals.
- Physically fit with a driving license or in a position to engage a driver (In all such cases where the borrower has an income the saving bank account should be with SBI).
- Resident Indian who is the borrower should be related (as given below) to the NRI/PIO fulfilling under noted eligibility criteria to stand guarantee for the loan. The scope of the term ‘relative’ will be as under:
- Spouse / Father / Mother (including step-mother) / Son (including step-son) / Son's Wife / Daughter (including step-daughter) / Daughter's Husband / Brother’s wife / Sister (including step-sister) / Sister’s husband / Brother (including step-brother) of the spouse / Sister (including step-sister) of the spouse
- A simple declaration by the NRI/PIO stating relationship would be obtained as per banks format.
3. For Guarantor - NRI/PIO
- Having valid Indian passport
- Steady Source of Income
- Employed abroad for at least 2 yrs
- Holding a valid job contract/work permit
- Having NRI account with SBI for at least 12 months with min. average balance of Rs. 50,000/- or New Account with USD 5000/- or equivalent.
- Power of Attorney (if necessary)
- Additional documents for PIOs:
- Current passport indicating birth place in India
- Indian Passport, if held earlier
- Parents or Grand parents passport with details therein substantiating his/her claim of being a PIO
Loan Amount for SBI NRI Car Loan Scheme
There is no ceiling on loan amount. Loan eligibility would be on the basis of guarantor’s income:
Max loan amount: 18 Times Net Monthly Income (of Guarantor) (OR) 1.5 Times Net Annual Income (of Guarantor)
Minimum Income: For Borrower: Not stipulated
For Guarantor: Minimum Net Monthly Income US $ 1000.00 (OR) Minimum Net Annual Income US $ 12000.00; Min. USD 12000 p.a. or equivalent in other currencies
Margin of NRI Car Loan Scheme
For all car Loans: 15%; The total cost of vehicle would be inclusive of one time road tax, registration, insurance, etc.
Repayment of NRI Car Loan Scheme
- The Equated Installment will be determined on the basis of the current rate of interest (EMI).
- Loan to be repaid within 5 years from the date of original sale. The customer will have option for payment in shorter duration also.
- Loan account to be closed before the guarantor reaches 65 years of age.
- Repayment to take place from
- Remittance from abroad through normal banking channels.
- Out of funds in NRE / FCNR / NRO accounts.
- Remittance out of local funds by close relatives of NRI/ PIO Guarantor.
Processing Fee NRI Car Loan Scheme
Processing fee of 0.50% is charged on the loan amount upfront.
Security for NRI Car Loan Scheme
- Hypothecation of vehicle and noting of hypothecation charge in the books of RTO.
- Security in the form of surrender value of LIC policy, NSC, units of UTI, Deposits with our Bank, SBI Magnums, gold or any other security normally acceptable to the Bank for grant of advance; to cover at least 35% of the loan amount.
- Non-financial securities like gold and non-specified securities like LIC policy to be valued at a margin as stipulated in the various schemes for finance against the securities concerned
- Tangible security, wherever applicable, can be waived by Sanctioning Authority in cases where the loan is granted to a person(s)
- An NRI/PIO - Housing Loan borrower and has a track record of satisfactory repayments (as per repayment schedule) of at least three years. (OR) An NRI/PIO who has in the past repaid Term / Demand Loan (other than a loan against a specified security etc.) as per repayment schedule (OR) An NRI/PIO who has been maintaining a deposit account with us for at least 5 years and average deposit has been of the order of Rs.50,000.00.
General Requirement for NRI Car Loan Scheme
The following papers are to be submitted along with the application for car loan:
- 2 passport size photographs of borrower.
- Signature identification from bankers of borrower/guarantor(s).
- A copy of passport /voters ID card/PAN card.
- Proof of residence.
- Completed loan application.
- 3 passport size photos including those in application.
- Passport copy with page containing visa stamping
- Copy of valid work permit
- Employment contract copy (an English translation duly attested by employer/ consulate/ embassy/our foreign office if it is in any other language)
- Latest salary certificate in original or proof of income in case of self employed/professionals
- Copy of identity card issued by the employer
- Proof of residence (driving license/ utility bills etc.)
- Copy of Continuous Discharge Certificate in respect of applicants employed in merchant navy.
- Statement of overseas bank account for the last six months which reflect credit of salary, savings etc.
- Power of Attorney, if applicable, in Bank’s standard format duly stamped and notarized/ attested by Indian Embassy/Consulate.
- Tri-merge/any other credit reports as applicable should be submitted by the NRI.
Score of less than 620 for Tri-merge are not eligible. If the country of residence does not have a credit score system for individuals, the bank will rely on the income level and the statement of assets & liabilities furnished by the NRI.
*PIOs to submit additional documents specified under Sr. No. 2 above.