Is Form 16 required for a four-wheeler loan?

Form 16 is a tax department document issued by the employer. This document contains all the details of the taxpayer. It may be used to show that your earnings and to confirm that your tax has is deposited to the tax department. Buddy Loan aggregator helps you choose a loan at a lower interest rate and also benefit you with tax exemption. 

The document is also used in processing loan applications. Form 16 is essential when applying for your four-wheeler loan because you may need to apply for tax exemption if you use your car for business. Form 16 is also mandatory when applying for the best car loans, even when you are an employed person. These confirm to the bank that you are a law-abiding citizen.

As a business person, you need to file your returns to apply for the tax exemption under the business expenses. The interest when you apply for a car loan is treated as a business expense. There also other options that your four-wheeler loan may get you a tax exemption. However, this depends on the IT officer.

To apply for a personal car loan, you need to submit the following documents to the provider for consideration. The absence of a report could delay your loan verification and, subsequently, the disbursement.

• A duly filled Buddy Loan application form
• Proof of age Birth certificate or 10th/12th school certificate
• Identity proof: PAN card, Aadhaar Card, Driving License, Voter's ID Card or Passport
• Proof of address: Utility bills like telephone and electricity bills or Ration card.
• Income proof the last 3-6 months' salary slip and bank statements, Form -16, and IT Returns.

However, there are ways that you can qualify to get a loan without proof of income or a form 16.

• Do a thorough research and apply for an online car loan.
• Consider making a down payment on your loan as it will bring down the cost of your loan considerably
• If you are unable to get a deposit, then you can use some property or an older car as security
• If you want to have low interest on car loans, you have to negotiate with your provider
• Upon car loan approval, ensure to read the fine print of the car loan agreement carefully.
• Make the repayment diligently as it increases your future chances of a loan.

Form 16 is, however, an essential document in the processing of your instant four-wheeler loan. Especially if your instant four-wheeler loan is rejected or you are getting a lesser amount.