Any salaried or self-employed individual can get a car loan if he/she has a good credit standing and a steady source of income. However, securing a car loan for any individual would be a challenging task if you do not have a steady source of income to prove your financial credibility.
Therefore, we bring you some of the easy ways that will guide you on how you can get a car loan without income proof.
Shop around: To find a reliable financial institution that provides auto loans without income proof, you need to shop around and do some research online. After exploring the multiple options, you should choose such a car financier that offers better terms on car loans along with low-interest rates.
Be ready with a higher down payment: When you avail of a car loan without proof of income, you need to pay a substantial amount as a down payment for your car. Doing so will bring down the overall cost of your car loan and increase your chances of loan approval.
Maintain a good credit history: Before approving your loan request, lenders would like to evaluate your credit history to gauge your creditworthiness. If you maintain a good repayment history with no outstanding dues or negative remarks on your credit report, then the lenders will be willing to lend you money. Any score of 750 or above is considered good while applying for car loans.
Avail a loan by pledging assets: If you do not have sufficient cash to make a down payment, then, in that case, you can also pledge your property such as your house, fixed deposit, or any other valuable assets to obtain a car loan easily.
Provide proof of income from other sources: You can also submit proof of other sources of income such as income from house rent, fixed deposit interest income, latest bank statements, last 2 years' income tax return, or the retirement pension. This will help lenders to assess your repayment capability and thereby boost your chances of loan approval.
Check the paperwork thoroughly: After you have provided a large down payment and get approved, you should remain cautious, especially if you are taking a loan from any dealer. Make sure you check the paperwork showing your approval before giving the money to the dealer or any financial institution. This will save you from any potential fraud or mishappening in the future.
Read the fine prints: After getting a car loan approval, ensure that you read the fine print of the car loan agreement carefully. This will give you a better understanding of all charges, terms, and conditions on your car loan.
Availing a car loan when you do not have proof of steady income is difficult but not impossible if you know the right approach. Expect to pay a higher down payment and a higher rate of interest to get your loan approved easily.