I am a non-resident Indian working in the Gulf. I want to buy a car for my parents living in India. Can I get a car loan?
Of course, you can get a Car Loan for your parents. Here are the features of NRI Car Loans.
Although you, as a borrower, will be the one paying the EMIs on the Car Loan, if you happen to be an NRI, you will not be able to buy the car in your name. You will have to buy it in the name of your next of kin who is a resident citizen of India. This person then becomes the borrower of the Car Loan and you, as an NRI, will become the guarantor for the loan. The car will be registered in the name of your relative while the repayment of the loan will be done by you.
Banks have their own list of ‘approved’ countries and if you happen to reside in any of these countries, then it will be rather easy for you to get a Car Loan. Countries such as the US, the UK, Malaysia, Singapore and West Asian countries are on the approved list of most banks. You will have to check with your respective bank in case you’re residing in a country other than the ones mentioned above.
Your Car Loan approval also depends upon your banking relationship, past record and age. Usually, banks also consider long-standing relationships of about 3-5 years when granting a Car Loan to an NRI. However, the bank is at liberty to turn down any application by a NRI for a Car Loan in case the credentials of the relative are in doubt at any point of time. Additionally the car has to be hypothecated to the lending bank and all the relevant documents have to be deposited with the bank after registering the car.
Read this blog post for more information – Car Loans For NRIs
Click here to apply for a Car Loan.