SBI NRI auto loan 2019: Loan amount, margin, interest rate, repayment, required documents
SBI requires certain final documents from both the NRI applicant and the resident Indian guarantor. | Photo credit: Representative image
- SBI informs all NRI applicants that the loan must be repaid within a maximum period of seven years from the date of purchase of the box.
- Under the NRI auto loan program, SBI charges interest of 9.75 percent per year for men and 9.7 percent per year for women.
- Interestingly, SBI waived processing fees on the NRI auto loan program until October 31, 2019.
New Delhi: Under the State Bank of India (SBI) Auto Loan Program for Non-Resident Indians (NRIs), all eligible persons can apply for a loan after fulfilling the necessary conditions applicable to the borrower and the Resident Indian who will act as guarantor. . According to SBI, the eligibility of the loan amount that can be sanctioned to a person is calculated on the basis of the applicant’s income and the maximum loan amount that can be given to the person is subject to 18 times the net monthly income or 1 , 5 times the applicant’s net annual income.
However, the State Bank of India has not set a limit on the loan amount. The equivalent monthly payment (EMI) should not exceed 50 percent of annual net income for people earning up to Rs 10 lakh per year and 60 percent for those earning more than Rs 10 lakh per year. SBI requires a claimant’s margin which has been set at 15 percent of the car’s highway price, including taxes, insurance, accessories, and the full extended warranty maintenance package.
The maximum cost of accessories, extended warranty and total maintenance package should not exceed 5% of the vehicle’s ex-showroom cost or Rs 50,000, whichever is lower, SBI said. The car loan can be repaid via remittances from abroad through normal banking channels, from funds from the applicant’s NRE / FCNR (B) / NRO accounts or by remittances from local funds by close relatives of NRIs.
SBI informs all NRI applicants that the loan must be repaid within a maximum period of seven years from the date of purchase of the box. SBI does not levy any prepayment penalty on the loan amount repaid before maturity. Under the NRI auto loan program, SBI charges interest of 9.75 percent per year for men and 9.7 percent per year for women. In addition, CIC rates will be applicable based on the individual’s credit rating. Interestingly, SBI waived the processing fee on the NRI auto loan program until October 31, 2019.
SBI NRI auto loan: Document required
SBI requires certain final documents from both the NRI applicant and the resident Indian guarantor. The basic documents that must be submitted to qualify for a car loan for NRI include the car loan application form, mortgage agreement, guarantee agreement, letter of arrangement, power of attorney (if required by the applicant) and the declaration form.
The NRI applicant is required to submit three passport-sized photos, a copy of the passport with a page containing the visa stamp, a copy of the valid work permit, a copy of the employment contract (if the contract is in another language, then a translation into English duly certified by the employer / consulate / embassy / office abroad SBI), last pay slip in original or proof of income for self-employed / professionals, copy of the identity card issued by the employer and proof of address.
There are some other prerequisites which may vary from applicant to applicant and can be confirmed by visiting a bank branch. Regarding the guarantor, SBI requires two passport-size photographs, an ID with signature of a banker, a copy of the passport // voter ID card / PAN card and proof of residence.