Can NRIs avail of used car loans for commercial vehicles?

Non-resident Indians (NRIs) who wish to purchase commercial vehicles through loans may face specific terms and conditions. Here’s a detailed overview:

• Generally, it is difficult for NRIs to get used car loans from banks or Non-banking Financial Companies (NBFCs) in India for financing commercial vehicles.
• Most of the Indian loan providers are hesitant to offer loans to NRIs for used commercial vehicle purchases unless they have an active business entity in India.
• Instead, NRIs usually have better luck getting commercial used vehicle financing in their country of residence rather than in India. The loan approval metrics tend to be more favourable overseas.
• For instance, if an NRI in the US or Canada wants to buy a used truck or minivan to start a courier business, they stand a fair chance of securing financing from financial institutions in their country of domicile.
• To apply for such used commercial vehicle loans abroad, the NRI must provide their visa status proof and demonstrate their business prospects and creditworthiness.
• On the other hand, Indian banks or NBFCs usually do not ask for visa status while providing loans for personal used cars to NRIs. But for commercial vehicles, the India link becomes critical for loan eligibility.
• An NRI with an active import-export business or other business entity in India can possibly get a used commercial vehicle loan by providing the business financials and paperwork.