HOW TO GET A CAR LOAN IN INDIA?
The idea of buying that fancy car you really want is more doable now. You can borrow money from banks and other places to help pay for it. Not too far in the past, having your own car was seen as something only rich people could do. But things have changed. Nowadays, many types of loans are available, making it possible for more people to make their dreams come true. You don’t have to keep wishing for things that seem out of reach anymore.
STEPS FOR CAR LOAN
- Check Your Credit Score: Before applying for a loan, it is important to check your credit score and credit history. Your credit score will determine your eligibility and interest rates for the loan.
- Compare Loan Options: There are several lenders that offer car loans in India at different interest rates and fees. It is important to compare different options and find the loan that is best for your needs.
- Prepare Documentation: Most lenders in India require the borrower to submit some documents, such as proof of identity, address proof, bank statements, and proof of income. Make sure that all the documents are in order before making the application.
- Understand Loan Repayment Terms: It is important to understand the repayment terms before taking the loan. Most car loans in India are taken for a tenure of 3 to 5 years, and these involve repayments on a monthly basis.
- Make Your Application: Once all the documents have been collected and the loan comparisons have been made, you can proceed with your loan application. Make sure that all the information submitted is correct.
- Loan Approval and Disbursal: After all the necessary checks have been made, the lender will either approve or reject your loan application. If the loan is approved, the loan amount will be disbursed into your bank account.
DOCUMENTS REQUIRED TO APPLY FOR CAR LOAN
Ensure you have all necessary documents in hand before applying for the loan. This proactive approach ensures a smooth, hassle-free process without any delays.
Documents for Salaried Individuals-
- Aadhaar card/PAN card/Driving License/Passport/Voter ID for identity proof.
- Aadhaar card/Passport/Driving License/Voter ID/Family card (ration card)/Utility bill (Electricity, water, or telephone)/Life insurance policy for address proof.
- Birth certificate/School transfer certificate/10th standard marksheet/Aadhaar card for age proof.
- Latest salary slips/Form 16/Income tax return document for income proof.
- Bank statements which include 3 to 6 months of bank statements and a form for signature verification proof, which is provided by the bank.
- Proforma invoice.
Documents for Self-Employed Individuals-
- Aadhaar card/PAN card/Driving License/Passport/Voter ID for identity proof.
- Aadhaar card/Passport/Driving License/Voter ID/Family card (ration card)/Utility bill (Electricity, water, or telephone)/Life insurance policy for address proof.
- Birth certificate/School transfer certificate/10th standard marksheet/Aadhaar card for age proof.
- 3 to 6 months of bank statements.
- Proof of business ownership, which includes business registration license, address proof of the workplace, maintenance bill, and utility bills.
- Income tax returns for up to 2 years/Audited balance sheet/Profit-loss statement for income proof.
- Signature verification proof.
- Proforma invoice.
GET INSTANT CAR LOAN
For a successful car loan approval, ensure the following factors are in order. These steps enhance your chances of immediate loan eligibility.
- Maintain a CIBIL score above 701
- Timely debt repayment
- Understand eligibility criteria
- Complete document submission
- Arrange down payment
- Create repayment plan using online EMI Calculator
CONCLUSION
Remember, each bank/lender might have specific procedures, so reach out to their customer service or visit their branch for personalized assistance and guidance throughout the car loan application process. Embrace the excitement of getting behind the wheel of your new car, knowing that you’ve made a well-informed choice.
