Car Loan for Self-Employed

Self Employed Car Loan Eligibility:

1. The applicant should be of at least 18 years old.
2. The applicant can be as old as age 75 at the end of loan tenure, which is more than what is allowed for salaried people.
3. The applicant should have relevant experience in the same line of business for at least three years. Again, this can vary slightly from bank to bank.
4. The income requirement depends on the car model you are intending to purchase. But most banks insist on a minimum income of INR 1.8 Lakh per annum for the cheapest model. This can be relaxed at the sole discretion of the bank.
5. The applicant's most recent ITR papers are also taken into consideration.

Documentation required for a Self Employed Car Loan:

1. A duly filled application form
2. A passport sized photograph
3. Copies of national ID cards bearing signature and photo as age proof and ID proof
4. Address proof (ID card, rental/ lease agreement or utility bill)
5. Income papers like bank statements of the last 6 months, computed income for the past 2 years validated by a C.A, acknowledged IT papers, reference and contact details of clients
6. Address proof of the firm (Utility bill, copy of Shop & Establishment Act certificate, SSI Registration certificate, Sales Tax certificate)
7. Pro-forma Invoice or Rate List
8. Post Sanction / Pre Disbursement Documentation
9. Duly signed loan agreement along with RTO set
10. Receipt of margin money paid

Features and Benefits of Self Employed Car Loans:

1. There are two kinds of car loans for self-employed, namely, secured and unsecured.
2. The applicant can avail for one that suits his/ her requirements and the loan will be sanctioned without much of a credit check.
3. There is no frantic paperwork or endless documentation except for a few personal information if you are applying online. Car loans for independent earners are popular precisely for this reason of easy access and prompt authorization.
4. Your personal details will stay secure and private and all the related information will be sent to your mail or phone or both.
5. The quantum of loan will get credited to your account directly without any delay.

How to calculate EMI for your Self Employed Car Loan:

Every bank website has a handy EMI calculator using which you can calculate EMIs (Principal + Interest). By entering required information like your monthly income, this tool will give you a choice of EMIs for various tenures.

Conclusion:

There are some specific concerns for self-employed individuals when it comes to vehicle loans. At times, self-employed loans are beneficial to those who run their own business to bridge the gap between client payments and when bills are outstanding. Auto loans for entrepreneurs can help them pay off the essential bills, and then reimburse the loan once the customer has repaid. Hence, this loan option is also a welcome breather for struggling entrepreneurs.

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