Financial needs can arise at any point of time in a person’s life. These needs can easily be fulfilled against your personal assets. One of the most common ways to fulfil your financial needs is by availing loan against your car. This is very helpful as you can easily get the required money in a few simple steps. Vehicle loans are one of the best as most financiers will easily give you 75% – 80% of your car value. To determine the cost of EMI you can use a second hand car EMI calculator. This will give you a clear idea about the amount of EMI that you need to repay.
Eligibility to avail loan against your car:
Eligibility to get a loan against your second-hand car is a very simple and easy process. You just need to follow some simple steps to avail of loans against your vehicle.
The Eligibility criteria are as follows:
- You need to have a good cibil score, as the financer always determines you’re paying capacity through your cibil score.
- Your vehicle needs to be less than 5 years old otherwise your application will get rejected.
- If the model of your car or the company is discontinued then you won’t get approval for loans.
- The minimum legal age should be 21 years and a maximum of 65 years.
- You should not be unemployed and have a good income record so that the financer can easily determine your paying capacity.
The above-mentioned points are basic eligibility criteria. There are a few specific points that need to be taken care of before applying for a loan against your old car.
Eligibility to avail loan against your car – If you are salaried:
- You need to have a job for the past 2 years at least.
- You need to have a minimum of 1 year of experience with your current employer.
- Need to clear at least 12 EMI’s if your car is financed.
- Your minimum legal age should be 21 years.
Eligibility to avail loan against your car- if you are Self Employed
- You should have had a business for more than 3 years.
- A minimum earning of Rs. 2,50,000 per year.
- You need to clear at least 12 EMI’s if your car is financed
- Your minimum legal age should be 25 years.
The above-mentioned points are some of the eligibility criteria for a specific class of persons. If you don’t fall in the above-mentioned criteria then there is a possibility that your loan gets rejected.
Document required:
You need to submit a few documents before applying for a loan against your car. There are two types of people i.e., salaried individuals and the self-employed individual who need to submit their documents according.
Documents for Salaried People:
- Aadhar card
- Pan Card
- Salary slips for the last 6 months.
- Statement of accounts generally for the past 6 months.
- RC of car.
- Loans details of your car.
- EMI repayment schedule of your car.
Documents Required for Self Employed Individual/ Business persons:
- Aadhar Card
- Pan Card
- ITR for the past 2 years.
- Saving account statement for past 6 months.
- RC of car
- Loans details of your car.
- EMI repayment schedule of your car.
Some of the features of a loan against your vehicle:
- You get a loan amount of 70-80% of car value.
- Quick and easy process.
- Lower interest rates.
- Easy repayment options.
Conclusion:
Loans against your vehicle can easily be availed through various lenders at an attractive interest rate. These types of loans easily fulfil your financial needs. You get attractive schemes and offers from various financial institutes, banks, and NBFC’s. There is no other additional security is required if you have mortgaged your vehicle. The second-hand car Emi calculator is the best tool that will help you to determine the EMI amount according to the tenure of loan you have availed. These loans are one of the best and help you to fulfil all your financial needs.
Frequently Asked Questions:
Q1. What is a loan against a car?
Ans1. The loan against the car is a facility offered by various financial institutes under which you get a certain amount of loan sanctioned by mortgaging your car.
Q2. Is it good to take a loan against a personal vehicle?
Ans2. Yes, absolutely and in fact it is the easiest way to get money at a time of urgency.
Q3. What if the car is financed?
Ans3. You need to worry if your EMI are still pending but you need to clear at least 12 EMI to avail the facility of loan.
Q4) How EMI is been calculated?
Ans4) The calculation of EMI can be done through second hand car loan EMI calculator.
