Can I pay more than the minimum down payment to avail a car loan?
Of course you can pay more than the minimum down payment required by your bank or any non banking financial company and seek a car loan on the remaining amount. The down payment amount or margin money fixed only the lower limit and any borrower must pay at least that much amount from his own pocket.
Actually it is a good idea to seek a car loan by paying a higher down payment. This would not only make your car loan amount less but would also mean you can finish repayment of your car loan sooner making you loan free. The earlier you finish your loan repayment the lower interest you would end up paying the bank.
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?
Yes you can easily get a car loan in India as many banks and non banking financial companies offer car loans for non resident Indians. Before requesting for a car loan, check with the bank or NBFC about the basic eligibility since the rules for eligibility for NRI car loans vary from bank.
Some banks offer NRI car loans only to those non resident Indians who have an NRE account active for more than 6 months to one year with the bank concerned. As an NRI seeking car loan you would need to bring an Indian co borrower as a guarantor for the loan. You can make either of your parents as a co borrower of the loan.
The onus of repayment for the car loan is on the guarantor in case you default on loan repayment. Banks will deduct the car loan EMI directly from your NRE account.
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 an 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.
Yes, you can pay more than the minimum down payment to avail a car loan. The down payment amount specified by the bank or lender is only the minimum amount that a borrower must pay from his end.
If you are in a position to pay a higher down payment, then by all means go for it. This will help you reduce the amount of Car Loan you need to apply for. It will also help you pay off the loan faster, which means you will pay less interest to the bank.