Featured Image Caption: Car Loans Eligibility
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You should note that car loans are usually given at 85% of your desired car’s value. In fact, your lender will also check your repayment capacity and determine the loan amount you are likely to receive.
If you are wondering, ‘how much car loan can I get on 40000 salary?’ then you should know a few things first. Limiting your car loans to not more than 20% of your monthly income is highly advisable. So, if your monthly income is Rs. 40000, then your car loan EMI should not exceed Rs. 8000.
Nevertheless, your creditworthiness also plays a pivotal role in your loan eligibility requirements. If you possess a remarkable credit score, lenders will readily provide large loans at cheaper interest rates. Thus, it is best to handle all your problems before applying for a car loan.
But if your lender finds out you have plenty of outstanding debts, they might reject your loan application.
Eligibility of Car Loans
Here we have enlisted those who are eligible to apply for a new car loan:
Salaried Individuals
This category includes employees from private limited companies and public sector undertakings, including state, central, and local bodies. You should be at least 21 years old while applying for the loan. Also, you can be up to 60 years old at the end of the loan tenure.
You can easily apply for a car loan if you have had a job for at least two years. Please note that you need to work for a minimum of 1 year with your current employer to acquire a car loan. On the other hand, you should also have a minimum family earning of Rs. 3,00,000 per year.
And lastly, you should also have a post-paid mobile or a telephone to apply for car loans.
Self Employed Individuals and the Professionals (Partnership Firms)
This category includes those who own a private company in the business of trading or manufacturing services. If you wish to acquire a car loan, you should have a minimum turnover of Rs. 300000 annually.
Self Employed Individuals and the Professionals (Sole Proprietorship)
These individuals need to be at least 21 years old while applying for the loan. And by the end of the loan tenure, they must be at most 65 years old. Besides, you should also have a prominent existence in business for at least two years and earn at least Rs. 3 lakhs/year.
Self Employed Individuals and Professionals (Private Limited Companies)
These individuals need to have a minimum earning of Rs. 3 lakhs per annum to qualify for car loans.
Self Employed Individuals (Public Limited Companies)
Just like private limited companies, these individuals should earn at least Rs. 3 lakhs every year to qualify for a car loan.
Documents Required for Car Loan Application
If you wish to acquire a car loan, then you need to submit the following documents with your duly filled application form.
Any document that proves your identity and address, including:
- Valid passport
- Voters ID card
- Permanent Driving license
- Aadhaar Card
- Job card issued by NREGA
- Letter issued by the National Population Register containing details of the name & address
- Updated bank statement for the last 6 months
- Latest salary slip along with Form 16 as proof of income, etc.
To Conclude
By now, you must clearly know ‘how much car loan can I get on 40000 salary?’ So, if you are willing to purchase a car, you can easily opt for a car loan from Bank of Baroda. They provide exceptionally higher loan amounts in comparison to all other loan providers. Besides, they will quickly approve your loan and disburse the pre-applied fund in your account.
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