Can NRIs apply for used car loans in India?

NRIs are allowed to apply for used car loans in India, and eligibility will depend on the individual lender. NRIs will need to show a valid passport and residence out of the country. In some cases, the lender will ask for a co-applicant or guaranteeing party, which is usually a family-based relative residing in India.

If you are an NRI then you will need to show proof of income like salary slips from your overseas position, a contract for employment or overseas bank statements. The used car must be registered in India when applying for financing and once availed, NRIs need to follow all the regulations by the RBI for foreign income or repatriation of money. Terms of the car loan, interest rates, and maximum amount borrowed may differ for citizens of India. Make sure you check your individual lender's NRI loan policy and have all documents ready for a smooth application process.

In some lender cases, you may be required to have a local or at least maintain an NRE or NRO account with the bank so that the EMI will be an easy transaction by directly transferring funds into your loan provider's account. Always check if your country of residence is on the lender's approved list, as not all countries qualify for NRI car loan applications in India. If you are self-employed then be prepared to provide evidence for your business and any additional financial documentation.