Car loan for self employed

Buying a car is a dream which most of us desire. Be it a salaried individual, self-employed professionals such as doctors, lawyers, Chartered Accountants, management consultants, or businessmen. Any individual can get a car loan easily if you meet the eligibility criteria. So, if you are self-employed and looking for car loans, this is what you need to know.

Eligibility Criteria for Self-Employed

  • The applicant should be of a minimum of 18 years old and a maximum of 75 years of age.
  • The applicant must have relevant experience in the same line of business for at least three years. 
  • The income requirement depends on the car model you are willing to buy. But most of the banks insist on a minimum income of INR 1.80 lakh per annum for the cheapest model and Rs 2.00 lakh per annum for others
  • The applicant’s latest ITR papers are also taken into consideration

Documentation required

  • A duly filled car loan application form
  • 2 or 3 passport- size photos
  • Photocopy of national ID cards with signature and photo as age proof and ID proof
  • Address proof such as your ID card, rental/ lease agreement or utility bills
  • Income papers such as latest 6 months' bank statements, computed income for the past 2 years validated by a C.A, acknowledged IT papers, reference and contact details of clients
  • Firm's address proof such as Utility bills, copy of Shop & Establishment Act certificate, SSI Registration certificate, Sales Tax certificate
  • Pro-forma Invoice or Rate List
  • Post Sanction / Pre-Disbursement Documentation
  • Duly signed loan agreement along with RTO set
  • Receipt of margin money paid

Features and benefits of Self-Employed Car Loans

  • Self-employed applicants can easily get a loan sanctioned in less time. As there is no frantic paperwork or endless documentation required except for a few pieces of personal information if you are applying for it online. Car loans for self-employed are popular precisely for this reason easy access and prompt authorization.
  • The rate of interest offered on such loans is low as compared to other secured financing options.
  • Applicants also get flexible repayment options to easily repay their loans.
  • The loan amount will be credited to your account directly without any delay if you meet the eligibility.

How can a Self-Employed calculate EMIs on a Car Loan?

A Self-employed applicant can easily calculate monthly EMIs on their car loan by using an online financial tool which is known as a Car Loan EMI Calculator. To use this calculator, you need to enter information such as loan amount, loan tenure, and rate of interest.