A car loan is sometimes the only option when you are facing some money crisis and at the same instant, you are in necessity of buying an automobile for availing some festive benefits. The application process for applying for an automobile loan is equal for both salaried as well as a self-employed individual.
Advantages of opting for an auto loan for a business person
Only salaried employees are not asked to take a loan and finance expensive items for themselves. However, a business person has also an equal right to finance an automotive for themselves. A business person can opt for an automobile loan which is used for logistics purposes under section 80C of the Income Tax Act.
This can be beneficial in decreasing your taxable income for the amount of interest submitted in a financial year. For example, if your overall income is around INR 10 lakhs yearly and you submitted interest of INR 30,000 on your automobile loan, then you are asked to cut the interest amount as an industry expense. So, the overall amount you have to pay is only near about INR 9.70 lakhs. An auto loan gives the business person various benefits like a businessman can claim for tax relaxation on the depreciation of the four-wheeler as well as few other expenses such as fuel and maintenance.
There are two kinds of options present for a business individual while opting for a vehicle loan which is secured and unsecured. In the first one, the lender asks for collateral or guarantor by neglecting the credit score, whereas in other the lender does not require any guarantor so they completely concentrate on the borrowers’ credit score. Try to maintain a credit score of 750 or above to avoid loaning disapproval. Corporation bank car loan is a great option for a business person while opting for an automobile loan.
Documents required for an auto loan for a business person
Below is some necessary documents mention that is required while opting for a vehicle loan:
The businessman should be an Indian citizen and a resident of one of the cities situated inside India.
The age limit for a business person to apply for an auto loan lies between 21 to 60 years.
The businessman should have an active bank account in the respective bank.
The borrower must have proof of the industry-like office proof of residence proof.
When you apply for a vehicle loan, there are a few income criteria and for a business person, which is a minimum of INR 15K.
A perfect passport size photo.
A vehicle loan is sometimes the only option to opt as it reduces the chances of monthly credit loss. However, in a vehicle loan payment, consider 30% as a down payment, and the rest of the amount as a loan. By using a Car loan emi calculator, you can go through your actual monthly EMI.
Must Read-What should you do before taking a Car Loan
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