Car Loan For An Unemployed Individual

Unemployed individuals can be businessmen or freelancers. This group of people don’t have a constant monthly income debiting to their account but are earning some way or other. Employed individuals are not the only segment of people that are eligible for a car loan. A car loan is like a personal loan in which interest rates are low because there is collateral pledged against the loan in the form of the car that is to be bought. The car itself remains with the buyer and can be used as per their need. The bank on the other hand holds some important document of ownership of the car. When a person fails to pay EMI’s ( Equated Monthly Instalments ) on time even after notice and reminders in that case the bank has the authority to call back the car. The owner can pay the dues and take the car back.

For this type of loan, banks are very flexible. They provide full and even partial funding in the form of a loan for the car. Car loans help people by providing funds for their car and accepting small payments for the same. Many banks also give zero% charge on foreclosure which means if the loan is to be settled by the borrower before the maturity of tenure there won’t be any charges levied by the bank. 

Some eligibility factors for self-employed individuals and professionals are:- 

1) The turnover of the business or individual should be above the threshold limit given by the bank. The limit might vary from bank to bank and on different cars to be purchased.

2) The individual should be above the age of 21 and below the age of 65.

3) The individual should be working for at least 2 years and 1 year if employed under someone else. 

Therefore these are the only basic requirements that a financial institution might need to provide an individual with a car loan. A car loan can not only help these individuals by fulfilling their dreams but also making their dreams affordable. After the loan is provided by the bank to the individual, he is liable to pay an EMI every month. An EMI is a part payment of a loan that includes the person’s interest liability also towards the bank. This EMI can be calculated by anyone without even applying for a loan by a tool called Car Loan emi calculator. This is a tool that can calculate the EMI liability of the person every month. One has to enter three values namely Amount which is the loan value sought to be taken, Interest which is the percentage of interest that would be charged by the loan offering bank and Tenure which is the time duration for which the loan is to be sought. Once all the values are inserted by the individual in the calculator the result is shown almost instantaneously. The result is the EMI that the person has to pay to the bank in case a car loan is taken according to the input values. Therefore car loan breaks the long going tradition of cars to be exclusive for only the rich. This loan enables even a normal citizen to dream of a car. Paying in small parts enables a whole new segment of people to buy a car. No down payment or full payment needed, just the ability to pay EMI’s is needed.

A car is not only for the rich and upper class. A car is not only for the employed and constant earners. Car loans ensure any capable person irrespective of their background or a constant source of income can avail this facility and get home their dream car.

Also read this: What Is The Eligibility for Credit Cards