Car Loan

Eligibility:

Criteria

• Guarantor must be an NRI.
• Applicant must be a resident Indian.
• Both Applicant & Guarantor, should be of an age between 21-65 years.
• Loan must be repaid before the guarantor reaches the age of 65.
• Applicant or borrower can be:
  • Individual
  • Agriculturist
  • Professional
  • Self-employed person.
  • Business man.
  • Student
  • Parent of an NRI, receiving pension or inward remittance at regular intervals.
• Borrower must be physically fit and must possess a driving license or must be in a position to engage a driver.
• Borrower must have an SBI Savings bank account (only when there is an income source).
• No minimum income criteria for borrower.
• Applicant should be a relative of the NRI and should fulfill any one of the following relationships with the NRI, to stand guarantee for the loan.
  • Spouse
  • Father
  • Mother (including step-mother).
  • Son (including step-son).
  • Son's Wife.
  • Daughter (including step-daughter).
  • Daughter's Husband.
  • Brother's wife.
  • Sister (including step-sister).
  • Sister's husband.
  • Brother (including step-brother) of the spouse.
  • Sister (including step-sister) of the spouse.

• Possess a valid Indian passport.
• Maintain a steady source of income.
• Be employed abroad for at least two years.
• Hold a valid job contract / work permit.
• Have a minimum Net Monthly Income of US $ 1000.00 or A minimum Net Annual Income of US $ 12000.00 (equivalent amount in other currencies).
• Maintain an NRI account with SBI for at least twelve months with a minimum average balance of Rs. 50,000/- or open a new account with USD 5000/- or its equivalent as the initial deposit.
• Provide a simple declaration as per the bank's format stating the relationship with the applicant.
• Provide power of attorney for the applicant, if required.

Loan Amount

• Loan amount eligible is derived on the basis of the Guarantor's income (no ceiling).
• The maximum loan amount is 18 times the Net Monthly Income (NMI) of the Guarantor or 1.5 times Net Annual Income (NAI) of the Guarantor.

Other Clauses:

Interest

• Floating rate of interest for new vehicles.
• For premium segment cars (i.e. loans of Rs. 7.50 lacs and above).
• Repayment period
  • Up to 3 years: 1.50 % below State Bank Advance Rate (SBAR).
  • Between 3 to 5 years: 1.00% below SBAR.
• For other cars, Multi Utility Vehicle / Sports Utility Vehicle.

• By duration of repayment period
  • Up to 3 years: 1.25 % below SBAR.
  • Between 3 to 5 years: 1.00% below SBAR.

Security

• Hypothecation of vehicle.
• Record of vehicle hypothecation charges in the books of the Regional Transport Office.
• Security in the form of the surrender value of LIC policy, National Savings Certificates, or units of UTI.
• Deposits with State Bank of India, SBI Magnums, gold or any other security covering at least 35% of the loan amount.
• Non-financial securities such as gold and non-specified securities like LIC policy to be valued at a margin stipulated in the various schemes for finance against such securities.
• Tangible security, can be waived if the NRI has:
  • Maintained a good repayment track record, against a home loan for at least three years.
  • Repaid a Term / Demand Loan, other than a loan against a specified security as per repayment schedule.
  • Maintained a State Bank of India deposit account for at least 5 years with an average deposit of Rs.50,000.00

Margin

• 15%
• Total cost of vehicle is inclusive of one time road tax, registration charges, and vehicle insurance.

Processing Fee

Repayment:

• Equated Monthly Installment (EMI) is determined by the current rate of interest.
• Loan must be repaid within 5 years from date of purchase of the car.
• The borrower has the option to repay in a shorter duration.
• Loan account should be closed before the guarantor reaches 65 years of age.
• Funds for repayment may be:
  • Remittances from abroad through normal banking channels.
  • NRE / FCNR / NRO accounts.
  • Remittances out of local funds by close relatives of NRIs.

Prepayment Penalty

• The loan is taken over by any other bank / financial institution.
• The loan is repaid before completion of half of the previously agreed repayment period.
• Partial repayment is made in the first year.

Documents:

General

• Loan Application Form.
• Hypothecation Agreement.
• Guarantee Agreement.
• Arrangement Letter.
• Power of Attorney (if applicable).
• Declaration Form.

Borrower

• 2 passport size photographs.
• Signature identification from banker.
• Copy of passport / voters ID card / PAN card.
• Proof of residence.

Guarantor

• 3 passport size photos.
• Passport copy with page containing visa stamping.
• Copy of valid work permit.
• Employment contract copy (If the contract is in any other language, an English translation duly attested by employer / consulate / embassy / or foreign office).
• Latest salary certificate in original or proof of income in case of self employed / professionals.
• Copy of identity card issued by the employer.
• Proof of residence (driving license / utility bills).
• Copy of Continuous Discharge Certificate if guarantor is employed in merchant navy.
• Statement of overseas bank account for the last six months, which reflect salary credits and savings.
• Power of Attorney, if required, in Bank's standard format duly stamped and notarized / attested by Indian Embassy / Consulate.
• Tri-merge / any other credit reports as applicable. Score of less than 620 for Tri-merge is not eligible. If the country of residence does not have a credit score system for individuals, the bank will rely on the income level and the statement of assets & liabilities furnished by the NRI.

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