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Car Loan
Read on to know the criteria required to apply for our Car Loan.
Car Loan Eligibility and Documents
Car Loan Eligibility
Car loan eligibility is about whether you can get a loan to buy a car. It depends on things like how much you earn, your credit score, and if you have other debts. Lenders use these details to decide if you can repay the loan. If you meet their criteria, you're eligible for the loan; if not, you might need to wait or improve your financial situation before getting a car loan.
Car Loan Eligibility Calculator
Refer to the Calculator
Car Loan Eligibility Criteria for Top Banks
Car loan eligibility criteria vary from one bank to another, but generally include factors such as your age (usually 21 to 65 years), minimum income (often around INR 20,000 per month), and stable employment. A good credit score, usually 650 or above, is important. Some banks might require you to be a salaried employee or self-employed, while others could need you to have a certain work experience or business vintage. Banks also consider your existing debts and liabilities to ensure you can manage the loan. Checking with each bank directly or using their online eligibility calculators can provide precise criteria tailored to their policies.
Car Loan Eligibility for Salaried Individuals/Self-Employed Individuals
For Salaried Individuals
- Individuals who are at least 21 years old at the time of loan application and no older than 60 at the end of the loan tenure
- Individuals who have worked for at least two years, with at least one year with the current employer
- Individuals with a minimum earning of Rs. 3,00,000 per year, including the income of the spouse/co-applicant.
For Self Employed Individuals
- Individuals who are at least 21 years old at the time of application and no older than 65 at the end of the loan tenure.
- Those who have been in business for at least two years.
- Should earn at least Rs. 3,000,000 per year
Documents Required to Apply for Car Loan
- KYC documents (Valid Photo ID Proofs)
- PAN Card
- Last 2 years' ITR as proof of income
- Salary Slip (latest 3 months)
- Salary account statement(latest 6 months)
- Signature Verification Proof
Fees and Charges for Car Loan
The fees and charges of car loans usually vary from lender to lender and from case to case. The aforementioned table will give you a fair idea of the fees and charges related to car loans:
Particulars
Charges
FAQs
A car loan is a financial arrangement where a lender provides funds to help you purchase a vehicle. You repay the loan in installments, often with interest, until the loan is fully paid off.
You apply for a car loan from a lender, and if approved, you receive the funds to buy the car. You then repay the loan in monthly installments over a predetermined period, typically 2-7 years, until the loan is paid off.
The interest rate is the cost of borrowing, while the Annual Percentage Rate (APR) includes both the interest rate and any additional fees, providing a more comprehensive view of the loan’s total cost.
Factors include your credit score, income, employment history, existing debts, down payment, and the chosen car’s value.
A down payment is the initial amount you pay upfront. A larger down payment can lower your loan amount, monthly payments, and overall interest cost.
A fixed interest rate remains constant throughout the loan term, while a variable rate can change based on market conditions, affecting your monthly payments.
Yes, many car loans allow prepayment. However, some lenders might charge prepayment penalties, so it’s crucial to review the terms before making extra payments.
If you miss payments, it can negatively impact your credit score, and the lender might repossess the car. Contact your lender immediately if you’re facing financial difficulties.
Yes, pre-approval provides you with an estimated loan amount and interest rate, helping you shop for a car within your budget and potentially negotiate better terms.