It is very easy in India for any salaried or self-employed person to get a car loan – even without furnishing an income tax return or any other kind of income proof. However, the person needs to have a good credit score to buy either a new or a used car with the help of a car loan. Many banks and other financial institutions offer car loans based solely on the credit history of the individual.
Let’s look at some of the ways in which you can get a car loan without providing an income tax return or any other income proof:
- You will have to do some online research to find a lender who will give you a car loan without an ITR, or an income proof.
- You will have to shell out a big chunk of the car’s price upfront to get a loan without an ITR for car loan eligibility
- In case you do not have enough cash on hand to make a big down payment, for a car loan eligibility you will have to have some property, FD, or gold which you can mortgage.
- You will have to be ready to pay a higher car loan interest rate because without an ITR, it is going to be basically an unsecured loan. If you are confident of your repaying capacity, though, feel free to negotiate with the lender for a lower car loan interest rate.
- When your loan is approved, ensure that you read the terms and conditions carefully, so as to avoid future shocks.
How to Improve Your Car Loan Eligibility without ITR?
- One way to improve your chances of getting a car loan without an ITR is to have a co-applicant who has it and also has a good credit rating.
- Pay up a big chunk of your car’s price upfront, and take a smaller loan
- You can also use your old car as collateral security to get a car loan to buy a new car
- Ensure that you pay your other EMIs and loans regularly and on or before the due date to maintain a good credit record, which is what most of the lenders look at when you cannot furnish an ITR.
- Check out alternate financing methods, but keep your distance from unscrupulous lenders in the disorganized sector.
PaySense Makes It Easy for You to Get an Instant Loan of Rs 2 Lakh
PaySense has now made the process of getting an instant loan of up to Rs 2 lakh. They have built versatile web and mobile apps on which you can obtain this loan without the hassle of leaving your armchair, or even during a busy commute from your mobile phone. This loan can be very useful when you wish to take a car loan without an ITR as you have to pay a large down payment for it.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs