A loan against a car is a convenient way to acquire funds while leveraging the value of your vehicle in times of financial need. This form of loan allows you to use your car as collateral, giving lenders a sense of security and perhaps allowing you to access higher loan amounts or lower interest rates.
You can apply for a loan against car in just a few clicks. However, you will need to provide a set of documents such as salary slips and bank statements, and any other documents (“said documents”) as may be deemed fit and proper at the discretion of the lender to grant such loan. In fact, the documents that are required to be submitted may vary from borrower to borrower. The availability and submission of the said documents shall be the determining factor for the lenders to assess your eligibility and repayment capacity.
One of the most important documents that help the lender in evaluating your repayment capacity is your income proof. This plays a vital role in determining your overall eligibility when you apply for a loan against car. In case you are unable to provide income verification documents and other supporting documents, then there are a few other alternative ways to avail a loan against your existing car.
Here are a few ways of getting a loan against car without income proof and income tax returns:
- Shop around and compare lenders
When seeking a loan against a car without income proof, it is crucial to shop around and explore different lenders. Look for financial institutions that provide loans with flexible documentation requirements. You should also compare terms and conditions of the loan, interest rates, eligibility criteria, and repayment options to find the right lender for your financial needs.
- Maintain good credit history
Good credit history is important for loan acceptance, especially when income evidence is not available. Maintain a decent credit score by paying bills and current payments on time, keeping credit card balances to a minimum, and avoiding delay and/ or defaults of your EMIs. A good credit history reflects your trustworthiness and responsible financial behaviour, which aids approval of the lender to issue a loan against car.
- Find a co-signer
Having a co-signer with a steady salary and an excellent credit history can help you get a loan against your car. A co-signer agrees to share loan repayment responsibility and provides additional security for the lender. Ensure that your co-signer is aware of the commitments involved and the potential repercussions if payments are not made on time. Their income and creditworthiness might make up for the lack of income proof, boosting the chances of loan approval.
- Find a guarantor
A guarantor, like a co-signer, provides an additional sense of security to the lender. A guarantor, who is often someone with a solid financial position and credibility, guarantees loan repayment if you default on the repayment. The guarantor must be willing to supply the necessary income documentation to support the loan application. This option allows you to secure the loan against your car by leveraging the guarantor's financial stability.
While these above factors can help you to improve your loan against car eligibility, final loan approval depends on your lender’s policy.
Bajaj Finance Limited (“BFL”) offers a loan against car of up to Rs. 102 lakh based on the eligibility criteria and the documents submitted by the borrower. These documents include KYC documents, the PAN card, employee ID card, bank statements, salary slips and a vehicle registration certificate. It is important to submit these documents to qualify for Bajaj Finance Loan Against Car. These documents are necessary to initiate the loan application process and ensure a smooth approval and disbursement process.
Click on the link below to know more about our loan against car.
