Yes, your employment status does matter to a certain extent for a car loan as the interest rates can vary depending on your current employment status.
Employment status is not as important as in the case of a personal loan as a car loan is a secured loan. The lender can sell the car you are buying in order to settle the loan in case the customer defaults on payments or cannot afford to repay the full loan amount.
If you are unemployed, the interest rates will be much higher when compared to a salaried or self-employed individual. This is because the lender will consider you as a risky borrower as there is no proof that you can afford to repay the loan without defaulting on payments.
If you are a salaried individual, then the lender will check if you are working for a reputed company that is listed with the bank. If your company is in the listed category, the interest rates will be comparatively lower than an unlisted company.
If you are a self-employed individual, the lender will check if you have a steady flow of income by checking your bank statements and IT returns. If your business is not doing very well, you might have a higher rate of interest charged on your car loan.
If you are unemployed or have a very low income from a lesser-known company, there is even a possibility of your car loan being rejected if you do not have a good credit score to prove your creditworthiness. So, you must ensure that you have a good credit score and credit history before applying for the same.
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