Can NRIs apply for a two-wheeler loan in India?

Non-resident Indians (NRIs) can apply for a two-wheeler loan in India, but the process has some specific requirements based on their unique circumstances. Financial institutions in India have provisions to cater to NRIs, allowing them to fulfil their aspirations of owning a vehicle in India. Here are the key points to consider,

1. Co-applicant or Guarantor: Most lenders require an NRI to have a resident Indian co-applicant or guarantor, usually a close family member. This ensures accountability for the loan in the NRI's absence.
2. Documentation: NRIs need to submit a range of documents, including:
   • Valid Indian passport and visa details.
   • Proof of overseas address.
   • Proof of income, such as salary slips or foreign bank statements.
   • NRI status proof (e.g., work permit or residence permit).
3. Loan Terms: Financial institutions assess the NRI's repayment capacity by considering their overseas income, job stability, and credit score. Interest rates and tenure are customised accordingly.
4. Loan Disbursement: Once approved, the loan amount is disbursed to the co-applicant's Indian account, enabling them to purchase the two-wheeler.
5. Repayment: EMI payments can be made through NRO (Non-resident Ordinary), NRE (Non-resident External) accounts, or by the co-applicant in India.

NRIs can easily apply for such loans through online banking portals, ensuring a smoother process. Before applying, comparing loan providers and thoroughly understanding the terms is advisable.