If you are a victim of poor credit score then having co-signer for car loans can be a smart move. It can be beneficial in acquiring loan for both new as well as used car. Having a co-signer by your side can helps ensuring the lender about your credibility and compensate for your low credit score. The cosigner guarantees that the installments will be paid on time by the other person in case you fail to do that. Getting a car loan in India can be a herculean task if you are a new borrower or one with a low credibility. Also, as a co-signer if you can offer your support some worthy candidate, nothing will benefit your position more than this. In this write-up we have summarized a list of some basic prerequisites that must be met while co-signing a car loan deal:
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A Fair Credit Score Of The Willing Cosigner: The person willing to co-sign the auto loan deal with you must actually be affirmative about sharing the responsibility. Lending organizations will never accept a verbal agreement and would want to pen it down. So, your partner in car loan must agree with all terms and conditions of loan.
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Proof For Cosigner’s Ability To Pay back The Loan: Your cosigner will be required to present his income proof so that the lender is ensured of his ability to pay back the installments. Wage vouchers or pay stubs might also be needed in case the cosigner is employed. In case, he or she is a business owner or self-employed they might need to show their income tax returns.
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Employment Stability And Residence Proof: Though, this one isn’t mandatory but there are some banks that may ask you for this. Lenders like to evaluate the co-signers and their financial potential. A permanent address and constant cash flow can be a solid way of convincing them that their money is going in safe hands.
