Sometimes, several buyers get discouraged with the idea of buying a four-wheeler for themselves as they are not able to qualify the eligibility criteria of minimum income. Nowadays, due to an increase in competition among the banking sector, you can also avail of a loan even with a lower income but some lenders in the market will ask you to fill the car loan application form in a bespoke way.
Income requirement for getting an auto loan
Both the salaried as well as the self-employed people are eligible to take an auto loan with some differences in the income. So here are a few salary requirement for getting an auto loan:
- If you are a salaried individual, then your annual income should be a minimum of INR 1.8 lakhs including the income of your co-borrower. You are also required to submit the latest salary slip with form 16 and garner experience of 1-year in the ongoing organization.
- A self-employed person should earn a minimum of INR 60,000 annually if you have a desire of purchasing a standard car. And if you are mentioning the business turnover, then it should be approx. INR 4.5 lakhs per annum. In addition to this, the borrower also has to submit the latest ITR as well as proof of the business.
Points to consider if you are purchasing a vehicle with low income
Below are some points to consider if you are opting for an auto loan with low-income criteria:
- The most common aspect to consider is, whether you a car and how expensive a four-wheeler you can afford. Try to evaluate various costs like the cost of the car, insurance, registration, and ongoing maintenance expenses.
- Try to have a good credit score as the lender will provide you an option of opting for a co-borrower, where both of your joint income will be computed to get a loan sanctioned. Try to maintain a CIBIL score of 750 or above to achieve an auto loan.
- If your current savings are not supporting you to purchase a four-wheeler, then try to shift the date and purchase your four-wheeler after a certain amount of time.
- Try to maintain a balance between your income and expenditure which is the debt-income ratio. Indian Overseas Bank Car Loan provides benefits to people with low income on an auto loan.
- If your income is as low as you are not able to pay a substantial amount of down payment, then try to contact the lender to reduce your down payment and increase the remaining loan amount.
Nowadays due to the increase in the demand for the four-wheeler loan in the financing sector, the lender is providing various flexibilities on various loans. If you are having any installment related issue, then try to check your EMI using a car loan EMI calculator before loan application.
