Did you ever feel the need to get some urgent loans and you were bewildered with which assets could get you a handful amount? A Car! Did you know that you could raise some quick funds using your car? Most people consider it as a last resort, but it can be one of the preliminary choices that one can opt for. Opting for a loan against vehicle can be a quick and hassle-free process.
You can obtain a loan against car that helps you procure finance for personal use. There is no restriction on the usage of the funds so borrowed. It can be used for any of your needs like home renovation or festive needs or even for a wedding. To add to it, is it available at a cheaper rate than availing a personal loan. A loan against vehicle can be of two types, refinance or a top-up. Refinance refers to availing loan against vehicle which may be hypothecated with a bank or having a zero loan balance due. Alternatively, you can obtain a loan against vehicle where it may be through a top-up. Existing car loan borrowers can opt such a top-up facility from their current lenders.
Loan against vehicle eligibility can be sought by providing a basic set of documents that are generally looked at by the lenders. They include your return of income, salary slips (if salaried), and bank account records (if specifically asked for). Along with the above documents, a good track record of repayment of the existing car loan can help you in getting such loan against vehicle without much hassle. The lender then analyses the loan against vehicle documents submitted to them, and you can receive a loan amount up to one and half times the value of your car. Cars in pristine condition get you more amount of finance so required. Certain financers have an upper limit on the maximum loan they offer, and that must be looked through before applying.
Let us have a look at the documents needed for applying loan against vehicle
For Non Corporate entities
|Age Proof||Identity Proof||Income Proof||Address Proof|
|Aadhar Card||Aadhar Card||Salary Slip||Photo Ration Card with DOB|
|Passport||Passport Copy||Latest Form 16/Latest ITR||Photo Driving License|
|PAN Card||PAN Card||Passport Copy|
|Voters ID Card||Voters ID Card||Telephone Bill|
|Photo Driving License||Photo Driving License||Electricity Bill|
|Photo Ration Card with DOB||Photo Ration Card with DOB||Credit Card Statement with Credit Card Copy|
|Employer Certificate/ID||Employer Certificate/ID|
|School/College Leaving Certificate|
A copy of partnership deed shall be required in case of partnership firms.
For Corporate entities-
- Memorandum of Association
- Articles of Association
For existing vehicle loans, you have to provide a repayment record for a considerable duration of nine or ten months. Alternatively, in case of a pre-closure, a foreclosure statement of such loan needs to be furnished.
Looking at the ease of documentation in availing loan against car, a person having a mediocre credit score can use their assets in availing instant finance. Keeping in mind the above mode of availing personal finance, you should opt for wiser options while bridging your financial needs instead of availing a personal loan with steeper interest costs. Loan against vehicle interest rates are competitively priced to help you in availing cheaper finances. You can contact your bank or NBFC for more information on the same.