Can You Get a Car Loan if You're Self Employed?

14 Jan, 2025


Synopsis

• Self-employed individuals can get a Car Loan if they fulfil the necessary eligibility criteria.

• Improving credit scores may help self-employed professionals qualify for a Car Loan.

• Consider aiming for a larger down payment for the car so that you can borrow less and repay faster.
  
  

Being self-employed has its own perks. From flexibility of time to control over income, it sure checks a few boxes. If you’re self-employed, know that you can secure a Car Loan if you meet the lender’s eligibility criteria. At the outset, buying a car as self-employed demands you to prove your repayment capacity. If you’ve been thinking to yourself recently, how can I purchase a car being self-employed, this article is for you. In this article, we go over the auto loan eligibility for self-employed, the documents needed, and more. Keep reading on.

How Can You Purchase A Car Being Self-Employed: Know Your Eligibility Criteria

Here’s an eligibility checklist for Car Loan for self-employed:

• A self-employed individual should meet the minimum and maximum age criteria to apply for a car, i.e., 21 and 65 years respectively.
  
  

• You should have relevant work experience in a single line of business for at least two years.
  
  

• The minimum income earned should not be less than ₹3 Lakh per annum.

Tips to Qualify for a Car Loan as a Self-Employed Individual

Here’s how you can increase your chances of securing a Car Loan:

• Prepare Your Financial Documents
  
  Lenders need to see proof of your ability to repay the loan. For self-employed individuals, this usually means providing detailed financial documentation including tax returns, bank statements, profit and loss statements, etc.
  
  

• Maintain a Strong Credit Score
  
  Your credit score plays a crucial role in your ability to secure a Car Loan. Lenders use this score to assess your creditworthiness and determine the terms of your loan. To maintain or improve your credit score, make sure you repay your debts on time and keep debt to income ratio low.
  
  

• Consider a Co-Signer
  
  If your credit score is low or your income is inconsistent, consider a trusted friend or family member with a strong credit profile to co-sign your loan. A co-signer’s good credit may help you secure a loan with better terms. Note that your co-signer is equally responsible for repaying the loan if you default.
  
  

HDFC Bank Offers Hassle-Free Car Loans for Self-Employed Individuals

Secure a Car Loan quickly and easily with HDFC Bank Xpress Car Loan, offering attractive rates in just 30 minutes! Benefit from 100% financing on select vehicles, affordable EMIs and flexible repayment options. With our fully digital application process, you can apply from anywhere, anytime, without the hassle of physical documents or verification. Loans are instantly disbursed to your car dealer through NetBanking. You can borrow up to ₹25 lakh with full on-road financing for new cars. As an existing HDFC Bank customer, you can avail of Top-Up Loans with no additional paperwork.

Apply now.

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Credit at sole discretion of HDFC Bank Ltd. Other charges and taxes as applicable. The offer is unconditionally cancelable without prior notice. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.