Buying a car is among the many purchases that folks make, second only to buying a home. There was a time when owning a car was a luxury and thus might be afforded by a couple of rich. However, with the supply of secure financing options having a vehicle isn’t just a dream but a necessity that the majority of folks can easily afford. Whether you’re getting to buy a replacement car or an old car, you’ll finance your car by taking an automobile loan at affordable automobile loan rates. The rates for an automobile loan varies as per the worth of the car, the loan amount you’ve got applied for, and the repayment capability of the borrower. You’ll get upto 100% of the ex-showroom price of the car.
Documents Required for an automobile loan:
To avail of an automobile loan, borrowers may have to fulfill different requirements for specific lenders. Here may be a list of essential common documents that are required by lenders to process your application for an automobile loan.
Identity Proof: PAN card, Passport, driver’s license, Aadhaar Card, Voter ID, Government-issued i-card.
Address Proof: Passport, driver’s license , Election ID card, Electricity/ Telephone/ Mobile bill/ statement (not quite 3 months old).
Income Proof: Form 16, last 3 months salary slip, last 3 months’ checking account statement showing salary credit.
Age Proof: PAN card, Passport, driver’s license, Voter id card, certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate.
Quotation of the value of the car selected from the dealer.
Eligibility Criteria for an automobile loan:
The eligibility criteria to avail of an automobile loan may vary from lender to lender. The common criteria to avail of an automobile loan are mentioned below:
Age: The regulation to urge an automobile loan is between 18 years to 65 years. Though, many banks consider minimum age of 23 years.
Income: To avail of an automobile loan, you would like a monthly income of ₹ 10,000 per month.
Profession: Both salaried individuals and self-employed professionals can avail of an automobile loan. The interest rates are lower for salaried applicants.
Credit Score: A credit score of 700 or above is considered a perfect score for availing of a private loan. However, some banks give personal loans at a credit score of 650 and above.
Work Experience: The minimum work experience required for an auto loan varies for salaried and self-employed professionals. Salaried individuals should have a minimum experience of 1 year, and self-employed professionals should have a business existence of a minimum of 5 years to avail of an automobile loan.
Checklist for Car Finance:
Identity proof
Residence address and ownership proof
Income proof
Down payment dealer receipt
Car quotation
Photo identity proof
Bank continuity proof
Bank statement
1 passport size photograph
Latest ITR
Investment proof if you’ve got any Fixed Deposit, Shares.