Is it possible to get a used car loan without a down payment for NRIs?

It is generally uncommon for banks or Non-banking Financial Companies (NBFCs) to offer used car loans without a down payment, especially for Non-Resident Indians (NRIs). Most financial institutions typically require a certain percentage of the used car value to be paid as a down payment or margin money for sanctioning loans to NRIs.

Generally, the down payment amount varies depending on the loan providers and loan terms.
A higher down payment allows the loan amount to be lower, which represents a lesser risk for the loan provider when providing used car loans to NRIs.

It also ensures the applicant has some equity in the asset. While zero down payment used car loans are usually not the norm for NRIs, few specialised NBFCs or fintech lenders may offer them on a selective basis.

The eligibility criteria for zero down payment used car loans tend to be stringent, and factors like the NRI's income levels, credit score, and repayment capacity are thoroughly gauged. The interest rates and processing fees applicable on zero down payment used car loans also tend to be higher to offset the larger risk borne by the loan provider.

Further, loan providers evaluate the car's make, model, year of manufacture, mileage, etc., before approving zero-down payment loans for NRIs.

So, while zero-down-payment used car loans for NRIs may not be impossible to obtain, they are not very commonplace. NRIs usually have to contribute a reasonable down payment for used car loans as per typical financial institution norms in India.