If you wish to buy a car but are short of funds, you will be delighted to know that you can purchase one with the help of a loan. Today, getting a car loan has become easy. However, you should have knowledge of the application process, eligibility criteria, tenure, and interest rate.
Eligibility criteria play a crucial role in the application procedure, as your car finance request may be approved or rejected based on these aspects. The conditions to qualify for a car loan may differ among financial institutions. Here are some necessary factors related to eligibility that you should know before filing your loan application.
Lenders like Mahindra Finance offer car loan at reasonable interest rates to applicants aged between 21 to 60.
- Annual income
Lenders always look out for income assurance before lending any type of loan to the borrower. It assures the lender that the borrower can pay the Equated Monthly Installments (EMIs) on time. Besides this, there is an income criterion. The borrower’s application may be rejected if his or her income is under INR 3 lakh per annum. Well, this criterion applies to employees working in the government and private sector. The maximum amount of loan they can get is 48 times their monthly salary.
Self-employed professionals, business owners, proprietorship concerns, and partnership firms should have an annual income of INR 4 lakh per year. Here, the borrower can receive a maximum loan, which is four times their net yearly income. Anyone working in agriculture and allied activities should be earning an annual sum of INR 4 lakh. Here, the borrower is eligible to get a loan value, which is thrice their net annual income.
- Income proof
Salaried people need to submit Form 16 or the latest salary slips. Additionally, they should have completed at least one year of employment in the current company. Self-employed applicants will need to provide copies of their latest Income Tax Returns. They should be in the same line of business for a minimum duration of three years.
Now when you know about the car loan eligibility criteria, it is time to approach a creditworthy lender for funding. Mahindra Finance requires minimal car loan documents and has a simple application process. So, without any delay, visit the lender’s website and apply for a car loan online.