Car Loan For NRI / Car Loan For Seafarers

When it comes to showing off seafarers lead the other professionals. It may be a car, bike, or lifestyle.

I have never anyone other than a seafarer who is sharing his salary with anyone. Let’s dive into the topic as there is no end to

show off hahaha…

I remember the day I approached the bank for a car loan. It was 11.25 % and max tenure was 3 years. Talking about 2011. I even

faced a lot of difficulties explaining the nature of the job and hence the difficulty in loan approval. Now the time has changed and

equally, credit goes to the availability of information which makes it possible to get a hassle-free loan.

Thanks to the interest rate cut for a car loan which is approximately 7.5 percent at the present market (SBI). The lower interest

rate makes car loans affordable for all crew and officers to consider buying cars.

Nowadays no need to go to bank for loan. Car showroom assists in getting hassle free loan.

All the details given below not only applies to seafarers but also applies to NRI


For reference I have taken State Bank Of India. Other bank policies may slightly vary.

Loan amount depends upon income of applicant

The max loan amount is 18 times the net monthly income or 1.5 times net annual income

I hope everyone know what net income is?

It’s the income after deduction of tax. So no need to worry for NRI seafarers as well as other NRIs.

Net minimum income to be Rs 10 Lacs

Eligibility should be such that loan EMI should not be more than 50%

Down Payment-

Normally it depends upon vehicle you are going to buy. Still take it as 15 to 20% onroad price of the car.

Processing fees-

It varies bank to bank and not much

Interest rate-

It starts with 7.5 percent and goes up. To some extent depends upon your bargaining quality.

Repayment –

Funds for repayment may be:

1.Remittances from abroad through normal banking channels

2.Out of funds from NRE / FCNR (B) / NRO accounts of the applicant

3.Remittances out of local funds by close relatives of NRIs

4.Loan must be repaid within 7 years (maximum) from date of purchase of the vehicle.

5.Prepayment Penalty Zero prepayment penalty, if loan is repaid before maturity but it is specifically for SBI. Other banks may charge penalty.


For Seafarer-

 The seafarer must be of age 21 minimum and 65 maximum.

I suggest cadet and junior engineer not apply for loan else they will be in trouble while going for the exam. Which is the most important part of their career.

For NRI(Non-seafarer)

NRI will be an Applicant (Borrower), with a Resident Indian as a Guarantor

Both Applicant & Guarantor, should be of an age between 21 – 65 years

The loan must be repaid before the applicant reaches the age of 65

NRI applicant (borrower) should fulfill the following conditions

  • valid Indian passport
  • Maintains a continuous source of income
  • Employed abroad for at least two years
  • For seafarer number of contract matters and ofcourse wages earnt
  • Hold a valid job contract / work permit
  • Seafarer has to produce CDC and stamp on it. Contract of employment.
  • Maintains an NRI account with SBI for at least twelve months with minimum average balance of Rs. 50,000/- or opens a new account with USD 5000/- or its equivalent as the initial deposit OR Maintain an NRI account with other Banks for last 24 months with a minimum balance/fixed deposits of Rs.50,000/-
  • Have a minimum Net Monthly Income of USD 1000/- or a minimum Net Annual Income of USD 12000/- (equivalent amount in other currencies)
  • “In case of other Bank customer, the borrower has to open NRI account with SBI for repayment of EMIs. In some cases NRE account does the job.

The above requirements may change as per your relationship with your bank.

The only thing it matters is that if you can convince the bank that you have the capacity to pay EMI in time then you are ready to go.

To be honest I give priority to buying a home. If want to know how to get a home loan then CLICK HERE

Guarantor (resident Indian) must fulfill the following conditions

Guarantor, a Resident Indian, should be a relative to 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)
  • Sister (including step-sister) of the spouse
  • Brother (including step-brother) of the spouse
  • Son’s Wife
  • Daughter (including step-daughter)
  • Daughter’s Husband
  • Brother’s wife
  • Sister (including step-sister)
  • Sister’s husband

Guarantor can be

  • Professional
  • Self-employed person
  • Business man
  • Individual
  • Agriculturist
  • Student
  • Parent of an NRI, receiving pension or inward remittance at regular intervals
  •  Guarantor must have a Savings bank account (only when there is an income source) No minimum income criteria for Guarantor


  • Car Loan application form
  • Arrangement Letter
  • Power of Attorney (if required by the applicant).
  • Hypothecation Agreement
  • Guarantee Agreement
  • Declaration Form

From Applicant (NRI Borrower) or Seafarer

  • 3 passport size photos
  • AADHAR card copy
  • PAN card copy
  • Passport copy with page containing visa stamping
  • Copy of valid work permit, contract of agreement
  • Continuos Discharge Certificate
  • Sometimes Certificate Of Competency.
  • In some cases copy of INDOS
  • Employment contract copy (If the contract is in any other language, then an English translation duly attested by employer / consulate / embassy / SBI foreign office)
  • Latest salary certificate in original or proof of income in case of self employed / professionals e.g. IT Return (of the residing country of NRI) / Tax Residency Certificate
  • Mostly last 3 month salary slip is asked with master sign and stamp
  • Copy of identity card issued by the employer
  • Proof of residence (driving license / utility bills/ rent agreement etc.)
  • Power of Attorney, if required, in Bank’s standard format duly stamped and notarized / attested by Indian Embassy / Consulate

From Guarantor (Resident Indian)

  • 2 passport size photographs
  • Signature identification from banker
  • A copy of passport / voters ID card / PAN card / AADHAR card
  • Proof of residence

Disclaimer- The author is not a financial expert. So before making any decision do proper risk assessment and take proper consultation.

The above article is for education purpose

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