Easier access to loans when purchasing a car

Borrowing money from the bank or any other loan agencies is a common thing most people do.  There are specific documents that are required in order to be given loans to show commitment. The eligibility to get loans from different institutions also differs. The individuals who would wish to get loans are classified according to the gross income they get. The following are the major qualifications to getting used car loan Bangalore:

Gross income

A salaried individual should have a minimum annual income of Rs 2.5 lakh for all their assets. For self-employed and unemployed individuals, the threshold is lower at Rs 2 lakh per annum. The permissible tenure for the loan is between 12 months and 60 months. For some car models, the maximum term that can be sanctioned is as high as 84 months.

Documentations

The requirements for salaried and self-employed individuals under the government payroll in support to their loan application are the following:

  • Signature verification proof.
  • Two passports.
  • Salary slip.
  • Bank statement for the last 6 months.
  • National id card.

The requirements for unemployed individuals who are not under the government payroll include:

  • One passport.
  • Audited balance sheet and profit and loss from the bank.
  • Certificate of commencement of business for public limited companies.
  • Certificate of incorporation from public and private limited companies.

Loan to value ratio

This is the portion of the car’s value that can be financed by the institution through the loan. The permissible loan to value ratio for all categories of clients is 85% of the value of the car. However, for salaried and self-employed individuals, the loan to value ratio can be increased to 98% of ex-showroom value of the car. So, it is not a bad deal to buy a car by taking a loan.