476. How to get a car loan in India -

Documents required to get car loan

Questions: Hi, I am an UK National and holds OCI, working in India since a 8 months now. What I wanted to know is whether am I eligible and can I apply for CAR LOANS to buy a car here? and if yes! then what's the procedure and document list? And secondly, which all bank can avail me car loan? I am particularly interested in getting loan through SBI, as they have the best rate of interest, as of today. A quick response would really be very helpful. Regards, Sandeep Answer: Car loans are the easiest to get in India. As an OCI status holder working in India, you probably have a bank account in India. The most appropriate method of applying for a car loan would be to contact the bank where you normally do your banking in India. While it is easier and convenient to apply for a car loan where a person normally banks, the choice to apply to any lending institution is always there.

General information on getting a car

loan in India

Normally Indian banks will allow a car loan of up to 85% of the car value or 48 times of net monthly Income of the borrower. Usually there is no such thing as a pre-payment penalty and car loans can be paid off at any time. LTV 85% of 'On Road Price' of car (includes registration, insurance and cost of accessories worth Rs 25000), 90% in case of Corporate Salary Package accounts Who can get a car loan in India: Individual who wish to apply for a car loan at banks in India should be: 1. between the age of 21-65 years of age. 2. Have full time employment with a reputed company 3. Businessmen should have tax records to show some sort of proof of their income 4. The Net annual income of persons apply for a car loan in India should be at least Rs. 2,50,000/- or above

Documents Required to get car loan

in India

While each lending institution would have their own list of documents required to get a car loan, some of the documents required are listed below: • Statement of Bank account of the borrower for last 6 months. • Passport size photographs of borrower • A copy of passport /voters ID card/PAN card. • Proof of residence. • Latest salary-slip showing all deductions • Income tax returns for usually the past two years.

NRI Car Loans in India

Non-resident Indians (NRIs) may be required by banks in India to have a relative resident in India to act as a guarantor for the car loan. Generally a blood relative is what the banks want.

Processing Fee for car loans in India

While in western countries there are no fees for processing loans, in India usually there is a car loan processing fee. Processing fees are charged based on the loan amount and normally are capped at approximately Rs. 5000 or so.

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