I am an NRI owing to my profession as a Merchant Navy sailor. Am I eligible to buy a car opting for a car loan?
Yes you can surely opt for a car loan as a non resident Indian. Before applying for a NRI car loan, make sure you are eligible as a NRI. For that you would need to check whether you have spent more than 182 days outside the country in the relevant tax assessment year. It is also a good idea to check with various banks before selecting the bank or NBFC as some banks have a minimum time cap you need to spend overseas before being eligible for a NRI car loan.
As an NRI car loan applicant, you will have to make a relative preferably one of your parents as a car loan guarantor or co-borrower. You would need to purchase the vehicle in their name instead of your name as onus of repayment would lie with them. The EMIs of the car loan would be deducted by the bank from your NRE account. The co borrower of the car loan is also allowed to repay loans on your behalf.
The good news is that an NRI can get a Car Loan in India. An NRI Car Loan can be taken for purchasing a new as well as a used car. However, the requirements and features of these NRI Car Loans are slightly different from a regular loan.
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. You will have to check with your respective bank if they have your country of residence on their ‘approved list’ for NRI Car Loans.
These are the primary points you must keep in mind when applying for a Car Loan as an NRI. Click the link to get more insight on Car Loan for NRIs.