Can I get a used car loan if I am self-employed or have irregular income?

Yes, self-employed individuals and those with irregular income can apply for a used car loan without restriction. Lenders assess whether you are eligible based on how stable your income is, how long you have been in business, and your ability to repay the loan. You'll be asked to provide documents to prove your income which may include income tax returns, bank statements, and business registration certificates.

If you're an irregular income earner, some banks and NBFC's will assess your average income over a couple of years. You will also improve your chances if you have strong credit history. Some lenders may want a higher down payment, while some may want a lower loan amount to offset against an irregular income. Someone with a steady income to co-apply with you will also help.

When preparing your documents, ensure to be honest about all of your revenue streams. This will make it less likely to cause issues down the road and could help you get better conditions on the loan. The lenders will also take the age and the nature of your business into account. If they see you have cash flow for the short, medium or long term and can behave responsibly with your money you are more likely to be approved for the loan. Always check a lender's information for their own requirements and eligibility before submitting an application.