How NRIs Can Apply for a Pre-Owned Car Loan in India: Step-by-Step Guide

29 July, 2025

Synopsis:

• NRIs can avail of Used Car Loans in India, provided they meet certain eligibility criteria and submit the necessary documentation.
•  A local guarantor or co-applicant is necessary.
• The documents involve a Power of Attorney (POA).

Meet Arjun, a Non-Resident Indian (NRI) working as a senior IT consultant in Singapore. Though

his professional life abroad is thriving; his heart still beats for his family back in India. Arjun

frequently travels to his hometown in Pune to spend time with his ageing parents. During his

last visit, he noticed how inconvenient it had become for them to manage daily travel without a

personal vehicle. That’s when he decided a car would make things easier for them.

But instead of buying a brand-new vehicle, Arjun figured a well-maintained second-hand car

would be more practical. Now came the big question: Can an NRI get a Used Car Loan in India?

If you are in the same boat as Arjun, wondering whether an NRI Used Car Loan in India is

available, this blog is for you.

From NRI eligibility for a Used Car Loan, NRI loan documentation, and interest rates, to RBI

guidelines for NRI loans, you will find everything you are searching for. Keep reading.

Can NRIs get Used Car Loans in India?

Yes. Several banks offer Used Car Loans for NRIs in India, provided they meet certain eligibility

criteria and submit the necessary documentation. These loans are designed specifically to help

NRIs finance the purchase of a second-hand car back home.

Eligibility criteria for NRIs

Car Loan eligibility for NRIs may vary from one lending institution to another, but the general

criteria include:

● The applicant must be an Indian citizen qualifying as an NRI, PIO (Person of Indian

Origin), or OCI (Overseas Citizen of India).

● NRIs must apply for the loan with an Indian citizen as a guarantor or co-applicant.

● The age of the applicant must be between 21 and 65 years.

● The applicant must have an NRO bank account in India.

Documents required for an NRI Used Car Loan

Here’s a checklist of the commonly required documents for a Second-Hand Car Loan for an

NRI:

● Passport and visa copies

● Proof of overseas employment

● Income proof

● Indian address proof

● FATCA or CRS declaration

● PAN card and recent passport-sized photographs

● Power of Attorney (POA) attested by an Indian Embassy

● Proof of NRO account

● Co-applicant’s KYC documents

Loan terms, tenure, and interest rates

Loan terms for an NRI Used Car Loan in India are similar to those for resident applicants but

may include slight variations in tenure or rates.

● Loan Amount: Up to 100% of the car’s valuation.

● Tenure: May range from 1 to 7 years, depending on the lender.

● Interest rate: Slightly higher than regular Used Car Loans due to the added risk of

overseas lending.

● Processing Fee: 1% to 2% of the loan amount.

How to apply for an NRI Used Car Loan in India?

You can apply for an NRI Used Car Loan online or offline. The process is straightforward:

1. Step 1 - Compare various lenders and select one.

2. Step 2 - If eligible, apply for a Used Car Loan online through the lender’s website. To

apply offline, you may visit the lender’s nearest branch.

3. Step 3 - Upload or courier the required documents.

4. Step 4 - Wait for the loan approval.

Benefits and limitations

NRI loans for second-hand cars come with certain benefits and limitations:

Benefits:

● Allows car ownership without an upfront payment

● Easy repayment through NRI accounts

● Tenure can go up to seven years

● Financing of up to 100% of the car’s value

Limitations:

● A local guarantor or co-applicant is necessary

● Interest rates are slightly higher

● The process is time-consuming and involves heavy documentation

Summing up

Getting a Pre-Owned Car Loan for NRI applicants in India is possible, but it requires meeting specific

criteria and submitting valid documents. Understanding bank-specific terms and NRI loan

documentation can make the process easier.

Whether you are looking for an NRI Used Car Loan in India or exploring lenders offering used

car financing options, being well-prepared ensures faster approval and better loan terms. With

HDFC Bank, you can get 100% financing on an Xpress Pre-Owned Car Loan with zero down payment.

FAQs
​​​​​​​

1. Can an NRI get a Car Loan in India?

Yes. NRIs can avail of Car Loans in India, provided they meet the eligibility criteria and furnish

the required documents.

2. Can we get a loan for a second-hand car in India?

Yes. Banks, such as HDFC Bank, offer second-hand car loans in India. These loans are designed

to help you purchase a used car without making an upfront payment.

3. Can I get a 100% used Car Loan?

Yes. With HDFC Bank, you can get 100% financing on Used Car Loans. You can apply online and

upload the necessary documents.

4. Is NOC required for a Car Loan?

Yes. A No Objection Certificate (NOC) is required for a Used Car Loan if the car was

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Credit at sole discretion of HDFC Bank Ltd. Other charges and taxes as applicable. The offer is unconditionally cancelable without prior notice. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.