car loan

Requirements for a car loan

You have decided to buy a new car. You have reviewed many models, selected a favorite, and are ready to book your dream car. But before you rush to apply for a car loan, you must make sure that you meet the eligibility process and have the proper documentation. This will speed up the processing of the car loan application, and you will have your car as soon as possible.


Am I eligible for a car loan?

Each bank has its own Car Loan Eligibility Criteria. They may need a small annual income, years of employment, or company profits before they can approve your loan.

The following people have the right to apply for a new car loan.

Salaried employees:

  • This includes employees of limited private companies, employees from public sector activities, including government, state, and local agencies
  • People under the age of 21 at the time of applying for a loan, and under the age of 60 at the end of the loan period
  • People who have had a job for at least 2 years, a minimum of 1 year with the current employer
  • Those earning a minimum of Rs. 3,00,000 per annum, including spouse / applicant income
  • People with a mobile/back phone

Sole Proprietorship:

  • This includes owners who are self-employed in the production, trading, or services business
  • People under the age of 21 at the time of applying for a loan, and under the age of 65 at the end of the loan period
  • Businessmen having experience of under 2 years
  • You must receive at least Rs. Rs. 3,00,000 a year

Partnership Firms:

  • This includes colleagues who work for themselves in the production, trading, or services business
  • Those with a small profit of Rs. Rs. 3,00,000 a year

Private Limited Companies:

  • This includes people who have private companies in the production, trading, or services business
  • You must receive at least Rs. Rs. 3,00,000 a year

Public Limited Companies:

  • This includes directors in limited public companies that are in the business of manufacturing, trading, or services
  • You must receive at least Rs. Rs. 3,00,000 a year

What are the required car loan documents?

Reasonable interest rates, payable EMIs, simple paperwork, and quick repayments are just a few of the reasons why car loans have become so much more comfortable for the average person today. Now the dream of owning a car is not far off - a few documents are all you need. Essentially, lending banks look for evidence that you are in good credit risk and are in a position to repay an Indian Bank Car Loan. This information, together with your credit score report, will have a direct impact on the interest rate charged.

Since your credit limit will be assessed at the time of application, it is advisable to clear any existing debts before your first application. This will definitely improve your chances of approval. If you have a bad credit history, the lending bank will also want to see your credit card statements, credit details, and other credit guarantees. Some banks may require certain documents that you do not need from other banks, so it is advisable to check with the lender before your appointment with your loan manager.

 

Post-sanction or Pre-Payment Documents

  1. The Loan Agreement which is duly signed with the Regional Transport Office set
  2. SI and ECS and the Security checks required by them
  3. Receipt of margin money

 

Proof of identity can be 1 copy of any of the following:

  1. Passport
  2. PAN card
  3. Voter ID card
  4. Driver's License

 

Proof of address can be 1 copy of any of the following:

  1. Ration card
  2. Driver's License
  3. Voter ID card
  4. Passport
  5. Phone Bill
  6. Electricity bill
  7. Life Insurance Policy

Conclusion

Do I need a car loan guarantee?

Generally, you do not need a car loan guarantee. However, you may need confirmation if you do not meet the eligibility criteria. For example, if your annual income is below banking conditions, they may also ask you to provide the very best guarantor.

 

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