I’ve joined in a new firm last week, My monthly salary is Rs. 40000. How much loan would I be granted for a new car? Since I’ve just joined here, is it mandatory to have 3 month’s pay slip or will I get the car loan for my current salary?
It is important to have employment experience of at least 2 years and current job stability of minimum 1 year. However some banks/financial institution may allow relaxation in the current job stability norms depending on overall profile but then also minimum 6 months employment record in current job is must. So, in your case if you already hold a 2 years job experience then please wait till you accomplish 6 months in current employment. Following are the minimum documents required for availing car loan:
a. Passport /voters ID card/PAN card
b. Proof of residence
c. Bank account statement for last 6 months
d. Latest salary slip showing all deductions
e. I.T. Returns/Form 16: 2 years for salaried employees
Since your net annual salary is Rs 480000 hence you can avail a loan of Rs 19.2 Lac (4 times of net annual salary or 48 times of net monthly income whichever is low) as per SBI norms. The amount may vary with other banks depending on their norms. Up to 90% loan to value is allowed over the on road price of car. Some banks may even allow 100% loan depending on past record and excellent profile.
Banks sanction loans based on various factors such as your earning capacity, repayment capability, Credit Score and other factors. Also, financial institutions grant only up to 80% -100% of the ex-showroom price of the car. You may not get funding for accessories.
When you apply for a Car Loan, these are the documents which are commonly required.
Income proof: You need to submit your salary slips for the last three months and the statements of your bank account for last six months. For self-employed people, you need to submit your audited bank account statements for last six months.
Employment Proof: You need to submit a copy of your appointment letter and a certificate of employment issued by your company. For self-employed individuals, the partnership deed or business establishment documents need to be submitted.
Tax Proof: You need to submit your IT return or Form 16 documents for the last two years.
Address Proof: Any government sanctioned KYC document can be submitted as proof of residence.
Age Proof: Any government sanctioned KYC document can be submitted as proof of age
Want a check your eligibility for a Car Loan? Click here.
Check these steps that can help you in getting a New Car Loan:
- Having a budget and knowing how much car you can afford is essential. You want to be sure your car payment fits in line with your other financial goals
- Before you shop for a loan, check your credit report. The better your credit, the cheaper it is to borrow money. With a higher credit score, you may be entitled to lower loan interest rates, and you may also qualify for lower auto insurance premiums. If you’re credit score is low, don’t fret. A lower score won’t prevent you from getting a loan. But depending on your score, you may end up paying a higher interest rate. If you have a low credit score and want to shoot for lower interest rates, take some time to improve your credit score before you apply for loans.
- Before you ever set foot on a car lot, you’ll want to be pre-approved for a car loan or a Car Loan Research potential loans and then compare the terms, lengths of time, and interest rates to find the best deal.
I have everything like- passport, ID Card, Birth Registration Certificate and Chairman Certificate as well. Will I be eligible for the loan?
The good news is that an NRI can get a Car Loan in India. An NRI Car Loan can be taken for purchasing a new as well as a used car. However, the requirements and features of these NRI Car Loans are slightly different from a regular loan.
Although you, as a borrower, will be the one paying the EMIs on the Car Loan, if you happen to be an NRI, you will not be able to buy the car in your name. You will have to buy it in the name of your next of kin who is a resident citizen of India. You will have to check with your respective bank if they have your country of residence on their ‘approved list’ for NRI Car Loans.
These are the primary points you must keep in mind when applying for a Car Loan as an NRI. Click the link to get more insight on Car Loan for NRIs.
Looking for a Car Loan? Click here.
So all kind of loans are only available for Indian people. Can a outsider apply for this?