Do your parents back home still use the public transport system? Apply for an NRI Car Loan, and gift them a car. Enjoy floating interest rates, with several easy repayment options.
Gift a new passenger car, truck, jeep, or van. You will be the guarantor for the loan and your parent / relative (an Indian Resident) will be the primary applicant or ‘borrower’.
Eligibility Criteria:
Eligibility for the NRI-Car Loan includes the following:
- Guarantor must be an NRI.
- Applicant must be a resident Indian.
- Both Applicant & Guarantor, should be of an age between 21-65 years.
- Loan must be repaid before the guarantor reaches the age of 65.
- Parent of an NRI, receiving pension or inward remittance at regular intervals.
- Borrower must be physically fit and must possess a driving license or must be in a position to engage a driver.
- Borrower must have an SBI Savings bank account (only when there is an income source).
- No minimum income criteria for borrower.
- Applicant should be a relative of the NRI
Guarantor: The Guarantor should fulfill the following conditions:
- Possess a valid Indian passport.
- Maintain a steady source of income.
- Be employed abroad for at least two years.
- Hold a valid job contract / work permit.
- Have a minimum Net Monthly Income of US $ 1000.00 or A minimum Net Annual Income of US $ 12000.00 (equivalent amount in other currencies).
- Maintain an NRI account with SBI for at least twelve months with a minimum average balance of Rs. 50,000/- or open a new account with USD 5000/- or its equivalent as the initial deposit.
- Provide a simple declaration as per the bank’s format stating the relationship with the applicant.
- Provide power of attorney for the applicant, if required.
Loan Amount:
- Loan amount eligible is derived on the basis of the Guarantor’s income (no ceiling).
- The maximum loan amount is 18 times the Net Monthly Income (NMI) of the Guarantor or 1.5 times Net Annual Income (NAI) of the Guarantor.
Repayment:
- Equated Monthly Installment (EMI) is determined by the current rate of interest.
- Loan must be repaid within 5 years from date of purchase of the car.
- The borrower has the option to repay in a shorter duration.
- Loan account should be closed before the guarantor reaches 65 years of age.
Prepayment Penalty:
Prepayment fee of 2% of the amount being prepaid is levied, in case:
- The loan is taken over by any other bank / financial institution.
- The loan is repaid before completion of half of the previously agreed repayment period.
- Partial repayment is made in the first year.
Margin:
- 15%
- Total cost of vehicle is inclusive of one time road tax, registration charges, and vehicle insurance.
Processing Fee: State Bank of India charges a processing fee of 0.50% of the loan amount, upfront.
Documents Required:
General
- Loan Application Form.
- Hypothecation Agreement.
- Guarantee Agreement.
- Arrangement Letter.
- Power of Attorney (if applicable).
- Declaration Form.
Borrower
- 2 passport size photographs.
- Signature identification from banker.
- Copy of passport / voters ID card / PAN card.
- Proof of residence.
Guarantor
- 3 passport size photos.
- Passport copy with page containing visa stamping.
- Copy of valid work permit.
- Employment contract copy (If the contract is in any other language, an English translation duly attested by employer / consulate / embassy / or foreign office).
- 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).
- Copy of Continuous Discharge Certificate if guarantor is employed in merchant navy.
- Statement of overseas bank account for the last six months, which reflect salary credits and savings.
- Power of Attorney, if required, in Bank’s standard format duly stamped and notarized / attested by Indian Embassy / Consulate.
- Tri-merge / any other credit reports as applicable. Score of less than 620 for Tri-merge is 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.
Note: This is a Guest post written by the Admin of Sbiloans.co.in
