IDBI Bank offers car loans with attractive interest rates & for upto 7 years. Calculate your eligibility and get a free EMI quote for your dream car.
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How difficult is it to get a loan on a new car? It is not as difficult as everyone thinks. Keep all information ready so that it gets easier. Getting a auto loan will help you manage expenses more easily as you do not have to put in all the money you have into the car investment. However, the loan will still remain as a burden until it is completely paid off. This article contains tips and useful info that will help you get the loan instantly.
If you are salaried, you should be 18 years old. If self employed, you must be 21. At loan maturity, your maximum age needs to be 60 years if salaried and 70 if self employed. Also, you need to have worked for at least one year in the current company to get the auto loan. If self employed, you need to have been in business for at least two years. Individuals satisfying the above criteria are eligible to get a minimum car loan of Rs 1 Lakh.
The following documents must mandatorily be submitted for your auto loan approval. The interest rate, however, varies from one bank to the other or financial institutions. Additional documents too may be required based on the source of loan. Address proof, photo identity proof and income proof are the three mandatory documents.
House lease agreement, driving license, ration card, voter ID card, telephone bill or wireless landline bill, electricity bill, post paid mobile bills or credit card statement is usually accepted as address proof. For photo identity proof, you may submit your passport, photo credit card, PAN card, voter's ID card, employee ID card, driving license, local panchayat ID card, form 16 or notary certification with your photo. The latest salary slips with form 16 may be submitted as income proof. Self-employed individuals, however, may submit their latest income tax return documents as income tax proof.
Partnership firms and private limited companies too can avail auto loans for new cars. The same proofs will be collected in this case also. As address proof, the organization will have to submit any document that would reflect the current address of the concern or firm. For identity proof, partnership deed, shop and establishment act certificate, latest sales tax assessment order or sales tax registration certificate may be given.
Memorandum and articles of association with registration certificate can be submitted by private limited companies to prove their identity. For income proof, partnerships firms and private limited companies may submit the audited balance sheet, profit and loss account of at least 2 years and the IT returns of the firm of the last two years.
Keep the above mentioned documents ready. Next, check for loan rates online to get a fair idea. Loan calculators too are available. If you find the rates quite low, contact the bank or loan agent right away. Since you have already kept the necessary documents ready, it will surely not take too long for the car loan to get approved. The next thing you need to be careful is the fancy words used by the loan lenders. The auto loan has not been designed to benefit you alone. The lender too gets his interest. The interest too will be beautifully distributed among the EMIs making you feel that the EMI or your brand new is quite affordable. Be aware of the extra amount you may be paying on your new car.