Car Loans in India
annual rate of cars manufactured and sold in India is around 1.75 million.Among this,nearly 60 to 80 percent of the cars are purchased only by getting loan for cars.Banks are the most obvious source of getting finance.The only way to minimize the car-related costs is to get the right car loan at a good interest rate.Banks offer good interest rate mainly to compete with other banks.If the loan is required immediately,then finance companies are preferable.The available finance schemes are Zero per cent finance and Attractive rate of interests.So,people are to be well educated about all these points to get the finance loan properly without any trouble.Here are some basic tips for getting finance for cars:
Basic Eligibility Criteria to apply for Car Loan
The first and foremost thing is the age of the applicant.The minimum age of the applicant should be atleast 18 years if he gets salary and 21 years if self employed.
The salaried employees should have worked in the current company for atleast one year.
The self employees should have atleast a minimum business experience of 2 years.
The minimum loan amount offered is Rs.1 lac.
All Banks and Financial Institutions offer varying interest rates for car loans.To get finance from banks,some documents are to be submitted which helps in getting approval for the car loan.But this document submission varies according to the employment of the persons applied for getting loan.
For Salaried Employee
For a Salaried Employee any of the following proofs are considered namely House Lease/ Leave & License agreement, Ration card, Driving license, House Tax chalan, Housing Society bill, Voter card, Passport, Telephone bill, Electricity bill, Water Tax chalan, Wireless Landline bill, Credit Card Statement, Post Paid Mobile bills in which two bills are required one which is 6 months before the last completed month and the bill of the last completed month.
Like Residential proof,any one of the following Identity proofs are required.Passport, Photo Credit Card, PAN Card, Voter Identity card, Driving license, Employee ID issued by Government of India/ PSU/ Limited companies, Local Panchayat Identity card, Notary certification with Photograph. Form 16 with latest Salary slips. Income Proof: Latest salary slips with the Form 16 document.
For Self Employee
For a Self Employee,the address proof of his company has to be submitted.
Identity Proof(any of the following documents):
Passport, PAN Card, Voters Identity card, Driving license, Latest Sales Tax assessment order, Sale Tax registration certificate
For a Self Employee latest income tax return is enough.
Partnership firm & Private Companies:
The documents required to specify the current address of the concern/firm.
For Partnership firms,any of the following documents are required namely Partnership deed, Shop & Establishment Act certificate, Latest Sales Tax assessment order, Sale Tax registration certificate.
For Private companies,Memorandum and Articles of Association with registration certificate.
Audited Balance Sheet, Profit & Loss Account (latest two years) and the latest 2 years IT returns of the firm.