Purchasing a car is frequently your first major financial commitment. It’s like taking the first step toward a wealthy and happy life. However, if you don’t have enough money to buy a new car outright, getting your hands on a shiny new set of wheels can be difficult. If you find yourself in this circumstance, a car or vehicle loan could be really beneficial. As per vehicle loan meaning, it is a secured loan against the vehicle you intend to purchase. Before you make any decisions about buying a new automobile, you should do your homework. Then learn how to get the greatest vehicle loan deal possible. Learn the fundamentals of this loan and how to apply for a car loan quickly and easily.
Eligibility Criteria for Vehicle Loan
The following are the fundamental requirements for obtaining a car loan:
- The candidate must live in India, whether in rural, semi-urban, or metropolitan areas.
- The candidate must be at least 18 years old and no older than 75 years old to apply for a vehicle loan.
- He or she should earn at least Rs. 10,000 each month.
- The applicant must be a paid or self-employed professional with at least 2-3 years of experience.
- The applicant must live in an approved residence with ample parking space, either inside or outside.
- He or she should have lived in the same place for at least a year.
Documents Required for Vehicle Loan
You should proceed to the next phase of the documentation process if you are eligible to apply for the loan and get a vehicle loan agreement. It is required to supply the following mandatory documents to ensure that the loan process is carried out smoothly by the banks or any other financial institution of your choice:
A legitimate identity proof: The applicant must produce valid identity evidence. This include a PAN card, AADHAR card, driver’s license, passport, or any other government-issued identification document.
An age proof: Because the candidate must be at least 18 years old, he or she must submit a supporting document that clearly confirms his or her age. It could be a driver’s license, passport, ration card, school leaver’s certificate, or any other government document that states your age.
A legitimate address proof: It is critical to give a government-issued document that includes your current address. It could be a PAN card, AADHAR card or something else.
An income proof: There are two types of jobs that are ideal: salaried and self-employed. Salaried individuals must give current 6 months salary slips, last 3 months bank statement, Form-16, updated ITR, and so on, whilst self-employed individuals must provide past 3 months P&L accounts, ITR, bank statements, balance sheets, and so on.
Signature verification: A signature verification evidence is required to confirm that your signature is unique.
Recent pictures: Keep two copies of recent photographs on hand, ideally two passport and stamp size photographs.
How to avail a vehicle loan?
Know your budget – Knowing your budget is critical in determining what kind of car you can purchase. You should consider the charges you may pay while applying for a vehicle loan, such as car upkeep, registration, and insurance.
Plan the amount to repay – Based on your budget, determine the monthly payment amount that will be used to repay the debt. Calculate your interest rate, the length of the loan duration, and the amount to be paid back in EMIs if necessary using the auto loan calculator.
Get your vehicle loan approved first – Getting your car loan approved first will make the process of getting a car loan easier and more flexible for you. Get it approved just before you go shopping for the car of your dreams.
Go vehicle shopping – When you’re ready to shop for the car of your dreams, this is the last stage. Before you go, do some research to see which car will be the greatest fit for you and your needs. Keep in mind that you should get an automobile that is within your budget.
Take advantage of offers and discounts– Choosing the correct time to buy a car, particularly during the year’s end and the Christmas season, can help you save a lot of money. During these seasons banks offer low-interest rates, waivers on processing costs, and other great deals. There will be special offers and discounts during the holiday season,
The vehicle loan application process can now be completed entirely online. It is critical to examine different banks and what they have to offer before deciding what to do. You can also go to third-party websites. This will help you to have a better understanding of the entire vehicle loan process. Consider essential elements such as down payments, interest rates, the loan duration, and the loan length to assist you make an informed decision. Some people also consider personal loan to purchase car, as it is an unsecured loan.
You should not be afraid to inquire about the loan’s terms and restrictions. Additionally, look for a lender that offers a pre-qualification or pre-approval process, since this will make negotiating with lenders easier. Make sure the car loan is correct by checking, rechecking, and double-checking.