Buying a car – new or pre-owned – requires a considerable investment. But, this does not deter car buyers from buying a car. To back this enthusiasm, banks and non-banking finance companies have introduced car loans as one of their products with a new car loan and used car loan as the two categories. Alike other types of loans, car loans also have specific eligibility criterions. Most often these criterions remain same across all lenders, but sometimes there may be a slight variation. Tata Capital is one of the most trustworthy and popular choices among loan seekers. This non-banking financial company offers car loans both for used and new cars. Here is a list of eligibility criterions that you must fulfil in order to avail a car loan from Tata Capital:
1. Source of Income – Based on the source of income, borrowers are classified as salaried professionals and self-employed professionals. And, the appraisal for a car loan for both the categories differ as stated under:
a. Salaried professionals – A salaried professional is one who is employed in a public or a private sector company. In order to be eligible for Tata Capital used car loan, a salaried professional should draw a minimum salary of Rs. 3-lakh per annum, whereas to avail Tata Capital new car loan, the salaried professional should draw a minimum salary of Rs. 2.5-lakh per annum. He should be employed for a minimum of two years, out of which one year should be with the current employer.
b. Self-employed professionals – A self-employed professional is one who owns his own business. In order to be eligible for Tata Capital used car loan or new car loan the self-employed professional should have a current minimum income of Rs. 2-lakh per annum and he should be in the business for at least three years and is applicable if you are the sole proprietor of a business. However, if you are a partner in a partnership firm, then you need to have an annual income of at least Rs. 60,000, and your business should have an income of at least Rs. 4.5-lakh per annum.
2. Age of the Borrower – The applicant has to be of minimum 21 years of age and at the most should be 60 years of age at the end of the tenure. Relevant age proof needs to be submitted along with loan documents to verify the age of the borrower.
3. Loan to Value Ratio – The loan to value ratio determines the amount of loan to be sanctioned for the car in question, and is a common term used by lenders. As a borrower, your credibility and financial position will determine the loan amount that will be sanctioned by Tata Capital. However, Tata Capital provides loan up to 90% of the total cost of the car or the actual sale price, whichever amount is lower.
4. Mandatory Documents – Along with the above-mentioned eligibility criterions, salaried individuals have to provide mandatory documents such as PAN card, identity proof, address proof, age proof, signature proof, ITR/salary slip or Form 16, bank statement of last three months including your recent photograph. The self-employed individuals will have to provide Certificate of incorporation for Private and Public Ltd. Companies, certificate of commencement of Business for Public Ltd. Companies, registered partnership deed for partnership firms, Memorandum and Articles of Association in the case of Public and Private. Ltd. Companies, Address Proof and PAN Card of the Firm, ITR and audited balance sheet and profit and loss statement including a photograph of Director or Partner.
Submission of the loan application by ensuring you meet the above-mentioned eligibility criterions will enable you to avail Tata Capital car loan within 24 to 36 hours. But, failure to meet any of the eligibility criteria could lead to rejection of your car loan application.