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Old 13th April 2011, 14:10   #1
buz
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Default Want car loan, but don't have a permanent address

Hi,

I am facing a very peculiar issue with the approval on a car loan from Tata Motors. They want permanent address proof and I have none. My parents live abroad with no permanent assets in India and I too live on rent. Is this a very critical requirement or can it be waived? Anyone with a similar experience who was able to get over it - please do let me know how to. The whole deal is stuck for this one unreasonable requirement.
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Old 13th April 2011, 14:21   #2
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Default re: Want car loan, but don't have a permanent address

Dont you have a landline phone / electricity bill / voter ID card for this address ?

Ask if an affidavit will do. Notorized or self attested.

Check with other banks. If they do something, then ask your current financer to do the same. If not, move to any other financer who will.
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Old 13th April 2011, 14:47   #3
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Default Re: Want car loan, but don't have a permanent address

Think of it from the financier's point of view : Would you give a loan worth a couple of lakhs to someone who doesn't have a permanent address (and can, hence, potentially become untraceable), & whose family lives abroad?

I doubt it. With default rates going sky high, banks have definitely been tightening up their loan approvals. The most logical options for you:

- Get a loan guarantor (family or close friends)

- Take a personal loan (higher rate of interest though)

- Say, you are buying a 6 lakh rupee car. Your parents can invest in a 7 lakh rupee fixed deposit, and you can take a car loan against that.

- Buy a used car
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Old 13th April 2011, 15:24   #4
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Default Re: Want car loan, but don't have a permanent address

Beautifully explained by @GTO. And the various other options mentioned are also spot on
if you already have some FD's taking an OD on them is a great option.
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Old 13th April 2011, 15:27   #5
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Red face Re: Want car loan, but don't have a permanent address

Wouldn't Buz still have issues even if he gets a car loan with a guarantor. The permanent address is required for the registration purposes also. Some RTO's do need permament registration proof, leave license agreement is not valid prrof.

I remember when I sold my santro to my office colleague and he wanted to transfer to Navi Mumbai RTO from Thane RTO and he was able to do that only after he contacted an agent who got the registration transferred with an inside job. If my friend would have gone on his own, he would have been shooed away since he did not have a permanent address.
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Old 13th April 2011, 15:31   #6
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Default Re: Want car loan, but don't have a permanent address

My friend was in similar situation. But he got the loan approved when he submitted his rent agreement as address proof. So a rental agreement in your name along with a formal letter from your company mentioning your address as per company records will do the work for you else try some different bank.
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Old 13th April 2011, 15:35   #7
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Default Re: Want car loan, but don't have a permanent address

The requirement is not unreasonable. No one can be expected to loan money to a party who cannot prove his/ her residential address.

The only solution as suggested by CONDOR is if the Bank/ Lender is willing to accept a Sworn Affidavit properly notarized which states that you live in the rented place currently occupied.
You must have some sort of agreement with the landlord for this rented place. Rental Agreements executed on Stamp paper can also be used as Address proof. You would also have some kind of local Bank Account which carries the address of the rented apartment/ house. That can also be used as proof.

Quote:
Originally Posted by buz View Post
Hi,

I am facing a very peculiar issue with the approval on a car loan from Tata Motors. They want permanent address proof and I have none. My parents live abroad with no permanent assets in India and I too live on rent. Is this a very critical requirement or can it be waived? Anyone with a similar experience who was able to get over it - please do let me know how to. The whole deal is stuck for this one unreasonable requirement.

Last edited by shankar.balan : 13th April 2011 at 15:50.
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Old 13th April 2011, 15:35   #8
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Default Re: Want car loan, but don't have a permanent address

I dont think Tata Motors Finance will provide a loan, even with a guarantor, without a permanent address.

One idea that comes to my mind, is to try for a loan from the bank where you maintain your primary bank accounts, or salary accounts if you are salaried. They may be more inclined to sanction you a loan in such conditions.

Though I do find it surprising that you have not provided any permanent address anywhere on any document yet.
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Old 13th April 2011, 15:42   #9
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Default Re: Want car loan, but don't have a permanent address

Hi buz,

I too faced this problem here although for getting a MTNL Broad band connection and GAS coonection. same was over came with -

1 ) a Affidavit mentioning address .
2 ) if you have a bank account with a PSU bank ( SBI / PNB ) etc , same can be used as well. bank do issue letters stating that so and so is the address as per bank records.
3)As you are living in rented accommodation, check with your land lord if he can provide you with his electricity / water bill . attach that with your rental agreement and that works .

IMO GTO suggested the most suitable option for CAR loan. a loan against FD . i too did that for my car loan , that way and it was breeze with SBI with no documentation / no processing charges/ no EMI hassle ( pay as you wish in stipulated time frame ) and above all no fore-closure charges and you get good interest rate ( 1 % more than your FD rate ) In the end you pay only 1% interest to bank .
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Old 13th April 2011, 15:47   #10
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Default Re: Want car loan, but don't have a permanent address

Recently wernt for an SBI car loan. In spite og giving them the salary certifictae, bank statements for last 6 months, Pan card copy, DL copy and Election ID card.. they still wanted a tax p[aid reciept for a property at the location.

Also one independent surveyor visited my place to confirm that I indeed stay at the address mentioned.

SBI personal mentioned that there had been quite a good number of instances where even the dealer fake the documents and bank ended up coniscating the asset (car is a depriciating asset and hence doesnt make up fully for the loan amount) and hence all these additional checks

I think if you have the amount and the loan is basically for IT reason, then better deposit in an FD and take loan against it.. (Still will come cheaper than the car loan and also no questions asked)

Reeards,
George V
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Old 13th April 2011, 16:54   #11
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Default Re: Want car loan, but don't have a permanent address

Update: HDFC Bank also suggested the same set of docs as has already been mentioned by bluevolt. Have asked Tata Cap to give me their final verdict (considering my docs are already in place with them) soon. Just for everyone's clarification: I never had a problem with residence proof. I had an issue with permanent address proof as I don't have a permanent address (i.e. a property owned by me or my parents or spouse or inlaws). Logically, permanent address has no sanctity considering parents too are equally mobile. And in many cases, parents too live on rented properties (been the case with mine and my wife's parents for all this while). Would that be criterion singularly enough to reject an application?
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Old 13th April 2011, 17:13   #12
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Default Re: Want car loan, but don't have a permanent address

As far as I know, you or your family (parents / grandparents or in exceptional cases, your parents' siblings if you can prove its an ancestral house) has to have a permanent residence in India. No loan will be given without the same. At least that is what I was told when my car loan was being processed.

As far as a sworn affidavit (notarized or not) is concerned, it is useless in this case. What will a finance company do with a notarized affidavit when the borrower is missing. So don't think the notarized affidavit is going to work. Its got zilch value.
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Old 13th April 2011, 20:03   #13
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Default Re: Want car loan, but don't have a permanent address

Not everyone has a "permanent" address of this kind. In my experience, the Banks usually accept Proof of Residence as sufficient.
Unless of course they ve changed some of the rules recently - been a while since I was in the car loan market so my info may be out of date.

Quote:
Originally Posted by buz View Post
Update: HDFC Bank also suggested the same set of docs as has already been mentioned by bluevolt. Have asked Tata Cap to give me their final verdict (considering my docs are already in place with them) soon. Just for everyone's clarification: I never had a problem with residence proof. I had an issue with permanent address proof as I don't have a permanent address (i.e. a property owned by me or my parents or spouse or inlaws). Logically, permanent address has no sanctity considering parents too are equally mobile. And in many cases, parents too live on rented properties (been the case with mine and my wife's parents for all this while). Would that be criterion singularly enough to reject an application?
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Old 13th April 2011, 20:50   #14
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Default Re: Want car loan, but don't have a permanent address

Quote:
Originally Posted by buz View Post
Is this a very critical requirement or can it be waived?
No Biggie! Forget TATA Motor Finance. Go, have a talk with the Manager of the bank with whom you have had your banking relationship all these days. As far as car loans are concerned, the prime security is the car itself. So none of your other assets are charged. All that the bank needs is a proof (read: assurance) that you will not be moving out of India (for good) till the loan tenure is over and that you will have a regular cash inflow to pay back your loan.

However you may need the following docs to get your loan approved.
  • Income Proof - IT filing ack copy, Salary/Bank statement of atleast the last three years
  • Proof of residence - Own/ rented - Atleast three years of stay in the same place
  • In addition to the above, You may even get a letter from your employer - HR Dept. to the effect that you have worked in the same organisation for the past 3/5 years or so
  • A friend/neighbour/relative (Preferably a person who has an account with the same bank with a high turnover in his account) with a reasonably high networth as a Guarantor

Have come across banks like BOB, Federal Bank etc., granting loans based on the above docs.

Good Luck!

Last edited by Warwithwheels : 13th April 2011 at 20:58.
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Old 29th April 2011, 14:54   #15
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Default Re: Want car loan, but don't have a permanent address

Hi all: a late update - once I got back to Tata Capital armed with a pre-approved sanction from HDFC Bank on my terms, they simply followed suite
Got the delivery of the car on Monday after all the paperwork etc. got over. Will be shortly posting the initial ownership review soon. Thanks for your comments on the post.
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