Unemployed but wish to buy a car? Looking a loan? Read on to know the finance options available
Owning a car is gradually becoming a basic need for everyone. While it is easy for self-employed/salaried car buyers to get a loan, it is comparatively difficult for unemployed people. That being said, loan options are available for someone who does not have a regular source of income.
To this day, regulation norms for car loans have been designed to help anyone who wants to buy a car on loan. Loans for unemployed are possible as banks provide secured loans loan against any form of mortgage, like property, securities et al (mutual funds, shares). The minimum value of security has to be Rs one lakh, and one can get a loan of around 50 per cent of the value of the securities, but these terms and conditions may vary according to the bank. For example, if your mortgage/securities are worth Rs 2 lakh, you can get a loan of up to Rs 1 lakh.
It can sometimes get difficult for an unemployed person to get a loan, as employment proof is one of the primary demands of the bank. In such cases you can consider plan B, and also look at gold loans. These are loans in which you give gold as security for the loan amount at an interest rate of 12-14 per cent.