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CAN I GET A CAR LOAN WITHOUT HAVING AN ITR IN INDIA?
Having a car used to be considered a luxury item. However, in today's economically growing globe, having an automobile is both a need and a convenience for getting from one end of the ever-expanding metropolis to the other.
Though not everyone has enough funds to buy a car in one lump sum, a car loan from a lender might help you realize your ambition of owning a car. Getting a vehicle loan in India is very simple, quick and paperless. With a few clicks online or at the company's respected branch, you can apply for a car loan application. However, in order to obtain a vehicle loan and purchase a new automobile, the individual must have a decent credit score. Many banks and other financial organizations provide car loans with decent interest rates entirely based on the individual's credit history.
Eligibility for A Car Loan
The qualifications for a new or used car loan in India differ by the lender. As a result, before applying for a vehicle loan, you should check your eligibility. The following is the car loan eligibility for people who are salaried or self-employed:
The applicant must be between the ages of 18 and 65.
He or she must be a salaried or self-employed professional with at least two years of experience in the same industry.
The applicant must have a net yearly income of at least Rs.3-4 lakh.
To qualify for a low-interest rate on a vehicle loan, he or she must have a strong credit score of 750 or above.
Ways of Getting Car Loan Without ITR
First things first, you need to do some research online about if the lender/company from which you wish to finance your car will give you a loan without an ITR, or income tax proof.
If you do not have enough cash on hand to make a large down payment, you will need to have some property, FD, or gold that you can mortgage in order to be eligible for a vehicle loan.
You must be prepared to pay a higher interest rate on your auto loan because it will be an unsecured loan without an ITR. However, if you are sure of your ability to repay, feel free to negotiate a cheaper vehicle loan interest rate with the lender.
In order to secure a car loan without an ITR for loan eligibility, you'll have to pay a large portion of the car's price upfront.
When your loan is accepted, make sure to thoroughly read the terms and conditions to avoid any further surprises.
How to Improve Your Eligibility for a Car Loan Without an ITR?
If you wish to acquire a car loan without ITR and income proof you can improve your eligibility for the application in the following ways:
Having a co-applicant with an ITR and an excellent credit rating can help you secure a car loan without an ITR.
You can use a previous automobile as collateral to obtain a car loan to purchase a new car.
You can pay a large portion of the car's purchase price upfront and take out a lesser loan.
Examine other funding options, but stay away from unethical lenders in the unregulated market.
It is very important to maintain a strong credit score, which you can achieve by paying other EMIs, loans, or any sort of dues. When you cannot provide an ITR, these are the important aspects that a lender will look at.
How Can You Improve Your Credit Score?
In order to get a car loan without an ITR, it is important that your credit score is up to the mark. The following are the ways you can improve your credit score to be eligible for a loan:
- Customise your credit limits
The utilisation of your credit ratio plays an important role in your credit score. The more you can keep your credit consumption to the authorised amount, the higher your credit score will be. Reaching the limit, on the other hand, has the reverse impact of lowering your credit score. One solution is to contact your lender and customise your credit limit based on your spending.
- Don't forget to make payments
How timely and consistent you are in making payments goes a long way in determining your credit scores, and having a long history of on-time payments may help you achieve excellent credit scores. To do so, be sure that there are no prolonged delays on loan or credit card payments.
- Avoid incurring too much debt at once
Keep the number of loans you take out in a given time period to a minimum. To keep your credit score from dropping, pay off one obligation before taking on another. If you take out several loans at once, it will show that you are locked in an unforgiving cycle of insufficient resources. Your credit score will continue to fall as a result. On the other hand, if you borrow money and successfully repay it, your credit score will improve.
Muthoot Finance provides a variety of vehicle loan alternatives for the purchase of a new or used, personal or commercial vehicle to assist consumers in realizing their goal of owning a car. When you take out a car loan, the vehicle you buy with the money acts as collateral or security against default. This loan can be quite handy if you want to take out a car loan without an ITR because it requires a substantial down payment.