Andhra Bank runs an attractive scheme for loans for four wheelers. Loans are available to individuals and firms, and it also runs a special scheme for women. Get loan amounts based on your salary where the maximum EMI should not be more than 60% of net income of salaried individuals and 70% for non-salaried people. You can avail of a loan for both new cars and used cars. Andhra Bank offers its customers a variety of repayment terms in the form of quarter, bi-annual, and annual instalments. This depends on your income and type of employment.
To be eligible for an Andhra Bank Car Loan, you must fall into the eligibility criteria set by the bank which is relatively lenient.
A few things can factor into your car loan eligibility such as your current debt, age, income and so on. The factors that can affect your car loan eligibility and their reasons are listed below:
Income - Banks set a minimum income required without which they will be reluctant to give you a loan. This is because they need to know you are earning enough money to pay back the loan.
Profession - Banks prefer you are steadily employed or that your firm is stable. This ensures regular income for you to pay back your loan till the end of your tenure.
Current debt - If you have existing debt, this could play a role in your eligibility. Your loan amount can reduce significantly if you already hold other kinds of debt such credit card balances and other loans. Your debt-to-income ratio should not exceed a certain limit where you would experience extreme financial strains to the point where you find yourself unable to handle your finances.
Credit Score - Your credit score assigned by CIBIL is important when you are taking out a loan. CIBIL scores show what kind of a customer you are when it comes to credit. A good credit score can help your application process become easier. A bad credit score can stand as an obstacle between you and your dream car.
CIBIL is the Credit Information Bureau India Limited which keeps a track of everyone’s credit record. CIBIL scores have come to be very important into today’s banking world. It does not keep track of your debit history and is only concerned with your credit history. CIBIL keeps a record of your behaviour and patterns when it comes to credit cards and its payments, loans, how many unsecured loans you have and how much debt you are in. It keeps a record of every time you default on a payment as well as every time you pay your bills on time and in full.
When you apply for a loan, Andhra Bank will make a hard enquiry on your CIBIL score. If you have a good score, this means you are a credible customer. Banks will be happy to approve your loan. Your process will be much faster and easier. If you have a low score, it raises a red flag with the banks as to why your score is low. It will lead them to think that you are not the ideal customer and will most probably default on the loan they give you. Your loan may not be approved or your application process will be complicated.
In case you find yourself not eligible for a loan or for the loan amount you need, there are ways to increase your chances.
Build your credit score - If your credit score is low or zero, you can build your score by using credit lines carefully. Spend on a credit card and pay it back in full on time. Don’t spend more than what you can pay back. If you are not eligible for a credit card, explore your options of secured credit cards. Make sure you don’t default on payments on any loans you might already have.
Co-Borrower - If you do not meet the income requirements, you can add your spouse or immediate family’s income and they will be a co-borrower of the loan.
Employment stability - Banks are reluctant to give loans to those who have unstable income. If you have been jumping companies or businesses, it proves that you are not a reliable customer with a steady source of income. You need to be regularly and permanently employed and show that you can carry out the loan and its EMIs till the end of the loan.
Pay off debt - If you can pay off any existing debt, especially the short-term unsecured debts, this will drastically change your eligibility. Your loan amount will significantly increase.
If you feel you might not be eligible for a car loan from Andhra Bank, you can use a calculator available online. This will help you determine if your income is enough or if you need a co-applicant to increase your income earned. With an Andhra Bank Car Loan Eligibility Calculator, simple details such as your age, income, and car brand and model, will help you determine if you qualify for an Andhra Bank Car Loan.
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