Last updated on September 1st, 2022 at 07:10 am
Having a personal vehicle makes it convenient to commute as and when required. That is why buying a vehicle is everyone’s dream. But, financial constraints may become a hindrance in fulfilling this wish. Here, personal loans come to the rescue. Several organisations offer personal loans for vehicles to the eligible applicants. But, before settling down for a personal loan, you must be aware of all the requirements to find the right loan.
Personal vehicle loan are usually provided by lenders without using any assets as collateral. The available loan amount varies across lenders and is affected by several factors. Below is a list of factors that highlights their importance for availing a personal loan.
Table of Contents
The age of the applicant indicates the repayment ability because debt management depends on the number of working years left. If the applicant falls below the minimum age cut-off, they may not have enough experience with loans. Also, their income may not be enough to support EMIs. Similarly, if the applicant’s age goes beyond the maximum limit, they may be close to retirement. Either of the conditions does not allow them to avail a personal loan.
– Monthly Income
Income assessment determines whether the applicant can effectively handle EMIs for the loan. Another reason for income assessment is to determine disposable income considering all the existing obligations.
– Credit score
Lenders heavily rely on the applicant’s credit profile to assess their creditworthiness. The history of credit score, particularly CIBIL score, gives a clear picture of the past dealings of the applicant. Usually, a CIBIL score of 750 is necessary to get a personal loan approved.
– Work experience
Work experience assessment allows lenders to judge the income stability of the applicant. Applicants with more work experience are more likely to get personal loans for vehicles compared to the ones with less experience.
Now that you know the factors affecting loan eligibility, let’s move further to know eligibility criteria in detail.
The candidate applying for a personal loan must be at least 22 years old. However, the maximum age limit exceeds up to 58 years of age at the time of loan maturity. It is necessary to ensure the repayment of loan without fail.
Lenders offer personal loans only to the applicants possessing Indian citizenship. Individuals belonging to other countries are not eligible to get personal vehicle loans in India.
Loan applicants must have a full-time job in order to be able to support the EMIs. The repayment of the loan entirely depends upon the type of job the borrower does.
– Work experience
When applying for a personal loan to buy a vehicle, you must possess at least 1 year of work experience. Also, you must be working with your current employer for at least 2 months at the time of application.
– Monthly income
A monthly income of at least ₹ 20,000 is required to apply for a personal loan. It ensures your loan repayment ability and financial stability to be eligible for the loan.
Moving forward, the biggest question that arises is about the documents required. Let’s have a look at the list of documents needed for personal loans.
– KYC documents
It includes Aadhar card or PAN card required for KYC verification.
– Address proof
Your passport, utility bills, or rent agreement can be used as address proof.
– Income documents
Your latest salary slips are the proof of your income source.
– Financial documents
The bank account statements and salary credit statements of the past 3 months are the required financial documents.
– Employment proof
Your employment certificate and degree certificates for professionals, such as the chartered accountant, doctor, or company secretary are a proof of employment.
The applicants must ensure that they possess all the above-mentioned documents before applying for a personal loan.
Getting a personal vehicle loan becomes easier with the right knowledge of the process and documentation requirements.