Car Loan For A Self Employed Individual

As we all know that being a freelance professional or an entrepreneur can be challenging sometimes but in the same way, this can be rewarding sometimes too. In those scenarios, you do not always have to wait for the end of the month to get that salary paycheck and after that, invest the money in something when you can apply for a car loan easily.

A self-employed person or a freelance professional may recompense himself only when he gets a good deal or when signing a lucrative contract. But the issue of the flow of funds is bound to crop every time now and until you get the whole payment for a particular sale. Therefore, when he/she will apply for a car loan, it can entail some factors that do not really exist in the regular times or circumstances for the people who are self-employed. For instance, if you want a car for business purposes, and you got a self-employed loan. Then, it will help you to pay off EMIs ( equated monthly installments) as well as the auto insurance until you get paid from the other end.

Eligibility Of A Self-Employed Car Loan - 

The car loan eligibility of a self-employed individual who wants to avail of a car loan is really simple.

The car loan eligibility for a self-employed applicant is summed up in the following points: 

1. He can be as old as around 75 years of age at the end of the tenure of repayment of the loan and it is allowed. While this is not allowed for a salaried individual.
2. The applicant must have at least three years of relevant experience in the line of business that he is pursuing but this can vary from one bank to the other.
3. The minimum income requirement mainly depends on the model of the car that you want to car loan eligibility but most of the banks insist on having a minimum income of Rs. 1.8 Lakh per annum, and that too for the cheapest model.
4. The most recent ITR papers of the applicant are also taken into consideration. 

Documents That Are Required For A Car Loan For A  Self-Employed Individual -

The documents which a self-employed individual needs to have for availing of a car loan in India are: 

1. Passport size photographs.
2. An application form (duly filled).
3. ID proof and age proof ( Aadhaar Card, Driving License, PAN Card, etc.)
4. Income proof which includes the bank statement from the last six months, the computed income for the last two years and it has to be validated by a Chartered Accountant (C.A.). 
5. The acknowledged IT papers.
6. Contact details of the applicant.
7. Address proof of the firm of the applicant. ( Utility bills such as an electricity bill, SSI registration certificate, copy of the Shop Establishment Act Certificate, and a Sales Tax Certificate).
8. Rate list or the pre-forma voice.
9. Duly signed the loan agreement.
10. Pre disbursement documents.
11. Receipt of the margin money.

Features Of a Self Employed Car Loan -

Following are some of the points that tell us the benefits and the features of a self-employed car loan:

1. There are mainly two types of car loans for self-employed applicants- secured and unsecured.
2. The applicant can avail of the type of car loan that suits him/her.
3. The loan is sanctioned mostly without a credit check.
4. There is minimal documentation in a car loan but there can be a little extra documentation if you want to apply online.
5. A car loan is really popular for self-employed people because of its prompt authorization and easy access.
6. The personal details of an applicant are all private and secured.
7. All the information which is related to the loan is sent directly on your mail ID or on your mobile phone.
8. The interest rates on a car loan are really low as the Axis Bank car loan interest rates are really affordable and reasonable for the customers. 

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