The eligibility criteria for a car loan usually includes a minimum net annual income of Rs.3 lakh for salaried applicants and Rs.4 lakh for self-employed applicants. An applicant must be aged between 21 to 65 years, have a good credit score, receive a steady income, and hold a stable occupation to be eligible for a car loan. It is true that obtaining a car loan when you have a steady income can take some effort let alone zero income. However, for whatever reason, if you are unemployed at the moment, you can still get an auto loan from a bank.
Unemployed individuals can get auto financing for the purchase of a new car or a used car of their choice from banks, non-banking financial companies (NBFCs), and auto dealerships in India. Whether you are employed or unemployed, driving a car that is not roadworthy could lead to vehicular accidents. It is better to replace the car with a roadworthy new or second-hand car. Here are some tips through which an unemployed individual can get a car loan:
Car loans for unemployed individuals may have a higher interest rate and smaller loan amount than the regular auto loans. You may have to pay more in interest and down payment. Save money to make a large down payment. If you are applying for a car loan at the bank that you are banking with, then negotiate with your bank relationship manager for a better car loan interest rate.
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