The right customer
- Salaried buyers of new cars
- Self-employed buyers with 2 years of ITR
- Used-car buyers with a verified valuation
What lenders look for
- Banks offer the lowest rates on new cars and often have dealer tie-ups.
- NBFCs are stronger in used cars and for thinner files.
Documents to collect
- PAN and Aadhaar
- Income proof
- Bank statements
- Proforma invoice or valuation report
Common rejection reasons
- Income too low for the car's price
- Used car older than the lender's limit
- Incomplete dealer paperwork
- Low credit score
- Co-applicant missing where needed
A worked example
Illustrative case
Customer: salaried, ₹80,000 a month, buying a ₹12 lakh car with ₹2 lakh down.
Illustrative payout at 1 % of ₹10 lakh: ₹10,000.