NRI CAR LOAN, GUARANTOR

NRI - CAR LOAN SCHEMEFOR NEW VEHICLE

State Bank of India presents a special product in car loans to cater to overseas Indians.

To meet their specific needs, we have launched a new car loan scheme titled as ‘NRI-Car Loan’. Under the stated scheme the Borrower will be a Resident Indian who is a close relative of sponsoring NRI/PIO who would be the Guarantor.

Under the NRI – Car Loan Scheme the NRI/PIO will be the Guarantor and the NRI’s /PIO's nominee will be the principal applicant.The car loan will be granted at the request of Guarantor (NRI/PIO)

1.Purpose:

Purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs.

2.Eligibility:

For Borrower & Guarantor
Age: 21- 65 years (for both). Loan to be repaid before the guarantor turns 65 yrs of age.
For Borrower:
Resident Indian who is:
An individual/agriculturist/professional or self employed/student etc or doing business with economic activity.
A parent of the NRI/PIO receiving pension or inward remittance at regular intervals.
Physically fit with a driving license or in a position to engage a driver
(In all such cases where the borrower has an income the saving bank account should be with SBI).
Resident Indian who is the borrower should be related (as given below) to the NRI/PIO fulfilling under noted eligibility criteria to stand guarantee for the loan. The scope of the term ‘relative’ will be as under:
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
A simple declaration by the NRI/PIO stating relationship would be obtained. as per banks format.

For Guarantor:
NRI/PIO fulfilling following conditions:
Having valid Indian passport
Steady Source of Income
Employed abroad for at least 2 yrs
Holding a valid job contract/work permit
Having NRI account with SBI for at least 12 months with min. average balance of Rs. 50,000/- or New Account with USD 5000/- or equivalent.
Power of Attorney (if necessary)
Additional documents for PIOs
Current passport indicating birth place in India
Indian Passport, if held earlier
Parents or Grand parents passport with details therein substantiating his/her claim of being a PIO

3. Loan Amount:
There is no ceiling on loan amount. Loan eligibility would be on the basis of guarantor’s income:
Max loan amount: 18times Net Monthly Income (of Guarantor)
OR
1.5 timesNet Annual Income(of Guarantor)


Minimum Income:
For Borrower: Not stipulated

For Guarantor:
MinimumNet Monthly Income US $ 1000.00 or
MinimumNet Annual Income US $ 12000.00

Min. USD 12000 p.a. or equivalent in other currencies

4.Margin:
4.1 For all car Loans : 15%

4.2 The total cost of vehicle would be inclusive of one time road tax, registration, insurance, etc.

5.Repayment:

5.1 The Equated Instalment will be determined on the basis of the current rate of interest (EMI).
5.2 Loan to be repaid within 5 years from the date of original sale. The customer will have option for payment in shorter duration also.
5.3 Loan account to be closed before the guarantor reaches 65 years of age.
5.4 Repayment to take place from:
§Remittance from abroad through normal banking channels.
§Out of funds in NRE/FCNR/NRO accounts.
§Remittance out of local funds by closerelatives of NRI/ PIO Guarantor.

6.Interest:
Floating Rates Only: New Vehicles
For Premium Segment Cars i.e. loans of Rs 7.50 lacs and above with repayment upto 3 yrs : 1.25 % below SBAR i.e. presently12.50% p.a.

Upto 3 yr (Loans below Rs. 7.50 lacs) : 1.00% below SBAR i.e. presently 12.75% p.a.

Above 3 yrs and upto 5 yrs : 1.00% below SBAR i.e.presently 12.25 % p.a.
(for all loans)

7.ProcessingFee:

Processing fee of 0.50% is charged on the loan amount upfront.

8.Security:

8.1a) Hypothecation of vehicle and noting of hypothecation charge in the books of R.T.O.
b) Security in the form of surrender value of LIC policy, NSCs, units of UTI,Deposits with our Bank, SBI Magnums, gold or any other security normally acceptable to the Bank for grant of advance ; to cover at least 35% of the loan amount.
8.2 Non-financial securities like gold and non-specified securities like LIC policy to be valued at a margin as stipulated in the various schemes for finance against the securities concerned
8.3 Tangible security, wherever applicable, can be waived by Sanctioning Authority in cases where the loan is granted to a person(s)

i)An NRI/PIO - Housing Loan borrower and has a track record of satisfactory repayments (as per repayment schedule) of at least three years.
OR
ii)An NRI/PIO who has in the past repaid Term/Demand Loan (other than a loan against a specified security etc.) as per repayment schedule
OR
iii)An NRI/PIO who has been maintaining a deposit account with us for at least 5 years and average deposit has been of the order of Rs.50,000.00


9.Documentation:

ApplicationForm
Hypothecation Agreement
Guarantee Agreement
Arrangement Letter
Power of Attorney (if applicable)
Declaration Form


10.Prepayment Penalty:

Prepayment fee of 2% of the amount of the loan prepaid will be levied if;

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

11.General:

The following papers are to be submitted along with the applicationfor car loan

For Borrower:
2 passport size photographs of borrower.
Signature identification from bankers of borrower/guarantor(s).
A copy of passport /voters ID card/PAN card.
Proof of residence.
For Guarantor:
Completed loan application.
3 passport size photos including those in application.
Passport copy with page containing visa stamping
Copy of valid work permit
Employment contract copy (an English translation duly attested byemployer/ consulate/ embassy/our foreign office if it is in any other language)
Latest salary certificate in original or proof of income in case of selfemployed/professionals
•Copy of identity card issued by the employer
•Proof of residence (driving license/ utility bills etc.)
Copy of Continuous Discharge Certificate in respect of applicants employed in merchant navy.
Statement of overseas bank account for the last six months which reflect credit of salary, savings etc.
Power of Attorney, if applicable, in Bank’s standard format duly stamped and notarized/ attested by Indian Embassy/Consulate.
Tri-merge/any other credit reports as applicable should be submitted by the NRI. Score of less than 620 for Tri-merge are 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.
*PIOs to submit additional documents specified under sl.no. 2 above