Any salaried or self-employed individual with a good credit score and a steady income can obtain auto financing for the sole purpose of purchasing a new or used car of most makes and models available in the market. Banks and non-banking financial companies (NBCF) offer new and used car loans to customers who meet their eligibility criteria.
Car loan eligibility varies from lender to lender. Therefore, it is important to check your car loan eligibility on the lender’s website before applying for the loan. Multiple loan rejections can have a negative effect on one’s credit score. The standard car loan eligibility criteria of a bank or NBFC are as follows:
To apply for a car loan, download the application form from the lender’s website or get it from the nearest bank branch. Submit the duly-filled and signed car loan application form along with the following car loan document proofs:
So, what about customers/applicants who can’t provide income proof? Can they get an auto loan? Fortunately, yes. If you are unemployed or self-employed and yet finding it difficult to document your monthly/annual income, you can still get auto financing from lenders who may be willing to look at only the credit history of the applicant and not the income proof.
Here are a few ways by which you can get a car loan without income proof:
Submit the above-mentioned document proofs along with the duly-filled and signed car loan application form to the lender. Your car loan application will be verified and processed by the bank/NBFC. Upon approval, the car loan amount will be disbursed to your bank account within a matter of a few hours.
Depending on the bank, the minimum car loan amount that can be availed will vary. For example, the minimum car loan that can be availed from Axis Bank is Rs.1 lakh. The minimum car loan amount that can be availed from Kotak Mahindra Bank is Rs.75,000.
The several factors that are considered to determine the amount of loan that can be availed are mentioned below:
Usually, collateral or security need not be provided when availing a car loan. The car acts as security. However, in case you do not meet the eligibility criteria, a co-applicant may be required.
Depending on the bank, the repayment tenure may vary. Most banks offer a repayment tenure of up to 84 months in the case of a new car loan.
Yes, you can foreclose the car loan. However, a charge is levied by certain lenders in the case of foreclosure.
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