Car is the preferred mode of communication by local as well as non-local residents of India. Expensive and poor quality public transport coupled with underdeveloped roads is the major reason why many Indians prefer to look for a suitable car purchase.
Buying a car for a foreign resident or a non-resident Indian (NRI) is an easy step by step process in India. You will find many established car loan providers that are willing and cooperative in providing car loans according to your needs. However, a non-resident Indian need to back his car loan claim through a resident Indian guarantor – who can be his employer, local business partner, Indian friend or an Indian relative.
After securing a resident guarantor and selecting a car, you can lease a car from any Indian bank by defining your
• Loan period – which can vary from one year to maximum 7 years
• Loan Payable – This will vary according to the price of car, income of the non-resident Indian and period of loan
• NRI Interest Rate – This according to RBI is approximately 12.25% of the amount loaned
• NRI Security – Like any Indian citizen, a non-local is also required to submit loan track record or similar details to obtain car loan from a reputable Indian bank
• NRI Documents – This includes personal details like identity cards and passport of self as well as that of the guarantor. Salary certificates, letter of guarantee, letter of hypothecation and proof of employment along with passport sized photographs of guarantor and self are needed for proper car loan processing and documentation. The bank will take a maximum of 2 working days to process a car loan in India.
The car loan is sanctioned to the non-resident Indian after due verification of the bank’s Field Investigator who rechecks your claims on employment and residence.
Car Loan Tip:
1. Always get a “No Objection Certificate” when buying a used car from an Indian bank.
2. Probe a low price car by inquiring about its registration. Buying a car registered in a different state will
later subject you to more taxes and registration fee. It is best to buy a car within your state of residence in
India.
3. Negotiate the interest rate, as it may win you a lower interest rate on car loan – saving reasonably good
amount of money.
FAQs
Yes you can. Approach a car delear of your choice. You can get a Car without much documentation but with full payment - No Credit/Loan to foreigners. Second part is Registering the car - for which documents are required - the dealer will help with the process - or he may even do it all alone.
How NRI can buy car in India? ›
Documentation Required for an NRI Car Loan
- Must possess a valid Indian passport.
- Proof of a steady source of income.
- Holds a valid job contract or work permit.
- Has an NRI account with the bank.
Who needs to apply for e-FRRO? All foreigners who desire Visa and Immigration related services in India viz. Registration, Visa Extension, Visa Conversion, Exit Permit etc need to apply for e-FRRO.
Can a foreigner register a car in India? ›
The vehicle can be imported either directly from the manufacturer or through an agent. You need to arrange the required documents and follow up on the process by yourself. On the other hand, an agent will help you get the car imported to India and help you till you get the car registered in the country.
Can I bring my car from India to USA? ›
Safety, Bumper, and Theft Prevention Standards
As a general rule, motor vehicles less than 25 years old must comply with all applicable Federal Motor Vehicle Safety Standards (FMVSS) in order to be imported permanently into the United States.
Can I ship my car to India from USA? ›
When shipping a car to India from the USA, there are two main shipping options: Roll on Roll off (RoRo) and Container Shipping. RoRo Shipping: RoRo shipping involves loading the vehicle onto a specialized ship that is designed to transport vehicles.
Can NRI buy car in India with full payment? ›
There are no restrictions on NRIs buying a car (or cars) in India. Just go to your favorite showroom, book the car, and drive away. Remember to use your NRE or NRO account for any payment at the car dealership. Don't worry; you won't be taxed for a car purchase.
Do NRI get car loan in India? ›
NRI will be an Applicant (Borrower), with a Resident Indian as a Guarantor or Co- Applicant. Both Applicant & Co-Applicant / Guarantor, should be of an age between 21 - 70 years. Loan must be repaid before the applicant reaches the age of 75.
Can NRI bring one car to India? ›
Non-resident Indians (NRIs) are allowed to import one vehicle when moving back to India permanently. You must have lived in the foreign country for at least two years to undergo the 'transfer of residence' process.
How long can a US citizen stay in India with OCI card? ›
An OCI card holder can stay in India for life time. It is important for an OCI card holder to ensure that they hold valid passports from their home country. In case the passport needs to be renewed then the OCI card holders have to get it renewed visiting their home country embassy in India.
For appointment, contact respective FRRO Support Centres as given below:
- FRRO Delhi. 011-26711443/ 011-26713851(24*7) ...
- FRRO Mumbai. 022-22620446/022-22621167. ...
- FRRO Chennai. 044-28251721. ...
- FRRO Bengaluru. 080-22218183. ...
- FRRO Ahmedabad. 079-26306606. ...
- FRRO Amritsar. 0183-2500464. ...
- FRRO Hyderabad. 040-29880374, 040-29880375. ...
- FRRO Kolkata.
One of the simplest ways to immigrate to India and obtaining residency is employment. This type of visa has the advantage of being issued for up to 5 years, as well as being extendable, thus enabling its holder to become a permanent resident of India.
How much does it cost to import a car from India to USA? ›
Estimated Duty:
2.5 % of declared value for passenger cars, 25% for Cargo Trucks/Pickup Trucks/Cargo Vans.
What is the new car registration rule in India? ›
The new car registration is increased by ₹600 for four-wheelers. The new rule went into effect on 1 April 2022. According to the revised fees, the registration cost for imported vehicles is ₹2,500, and the renewal charge is ₹10,000.
What is all India permit for personal car? ›
National Permit or All India Permit is a type of registration provided to transporters by the Transport Department of each State Government for goods carriage to operate through-out India. State Governments can issue two types of permit for goods carriage, one being State Permit and the other National Permit.
How much does it cost to import a car from India to US? ›
Estimated Duty:
2.5 % of declared value for passenger cars, 25% for Cargo Trucks/Pickup Trucks/Cargo Vans. Duty Free for motor vehicles returning within 3 years of exportation.
How much does it cost to bring a car from US to India? ›
From the U.S., it usually costs from $2,200 to $5,600 to ship a car to India. Most cars transported to the area come by way of a shipping container, which can accommodate most standard cars. For larger vehicles that do not fit in a container, the costs are generally higher.
Can we drive US registered car in India? ›
In the case of an imported used car, it should be a right-hand drive. The vehicle's speedometer must indicate distance in km and not miles. A certificate issued by a testing agency must be submitted stating that the vehicle is being imported into India and a roadworthy certificate of 5 years must also be submitted.
Can I buy a car with B1 B2 visa? ›
Yes, it is possible to buy a car on B1/B2. It is also possible to keep your car ownership after leaving the USA. The hard part is to get it back into the USA; generally they will only allow you in with a car registered in the USA, if you have a work visa that allow for temporal residency.
