The pre-qualified auto loan bad credit is the temporary loans that are sanctioned to individuals and businesses for a time period lesser than a year. Considered as a savior, these are sanctioned when one fails to get the long term ones, owing to bad credit history and various other reasons. Offered by both banks as well as private lenders, these can be secured or unsecured and is completely dependent upon the terms and conditions of the lenders. They are also called short term installments due to their repayment in monthly installments. This article discusses further the same and mentions every intricate detail about it.
The categorization of easy finance car loans can be done in the following major types, based on the conditions against which they are sanctioned: –
- Personal loan, for individuals (both self-employed and working ones) and the maximum loan amount up to INR 30 to 40 lakhs. The repayment period differs as per the agreement, but it has various advantages like quick sanctioning, lesser paperwork and no consideration of past credit history.
- SME loan, for companies and businesses in times of emergencies. These are quite difficult to get sanctioned and the businesses need to satisfy the basic requirements of the banks to get these sanctioned.
- The bridge loan, which is sanctioned for property transactions and involves buying and selling of the property. The requirements for the same differ from one individual to the other.
- Demand loan, for meeting any of the urgent financial constraints. The loan amount is dependent on the maturity value of the savings of the borrower and the agreement is then decided based upon this value.
The eligibility condition for the easy car loan finance differs from individuals to businesses and are as follows: –
- For Individuals
- Need to be salaried or self-employed ones
- Meet the threshold value of monthly income so as to get qualified as per the bank’s terms and conditions
- Must be aged between 21 to 60 years i.e. belong to the working class of the society
- Must provide all of the required documents to get the loan sanctioned
- For Businesses
- Need to have a good credit history and relations with the bank
- Must meet the required threshold value for annual turnover
- Must have the specified value for the annual revenue that needs to be generated to qualify the terms and conditions of the approval.
The Required Documentation
In India, the following are the required documents that need to be submitted in order to get the loan sanctioned from a firm or to get the online easy financing auto loans sanctioned: –
- Proof of income in the form of income certificate or monthly salary receipt
- Proof of residence that might include land proof, electricity bill, phone bill etc.
- Proof of age in the birth certificate
- Bank statement of the past 6 months as proof of the credit history
- Proof of employment that might include the joining letter and offer letter from the company.
The Exceptional Conditions
There are some exceptional conditions when it comes to the approval of the pre-qualified auto loan bad credit: –
- In cases of bad credit history, there are some financial institutions that may provide the loans but at higher rates of interests when compared to the other loans. The rate of interest depends upon the credit history completely and is decided upon how bad it is.
- In cases of no credit checks, there are certain clauses under which the financial institutions sanction the loan amount. However, in such cases, the loan agreement might be stricter and one would have to ensure timely installment payment for this.
Banks Vs Private Lenders
Both banks and private lenders are eligible to provide easy finance car loans but have differences in their methodologies. Some of the major ones include –
- Interest rates as high as 2000 % per annum in the latter case
- Clear and lucid agreement instructions in the case of the former which makes it a safer choice
- Easy and timeless approval in the latter case due to less complexity in the paperwork involved
- No credit evaluation in the case of the latter
Hence, based on the above parameters it is completely up to the individual to decide whom to go for to get their short term loans approved. The other parameters mentioned also determine the type of loan for which the individual or the business is eligible.