The car loan offered by Bank of Baroda is simple and attractive. You can get a loan for three purposes:
The loans have very low processing fees. If you choose to foreclose your loan, you will not face any penalty charges. If you offer a minimum of 50% liquid collateral, you can avail of concessionary interest rates. For home loan customers with a good repayment history, you can avail of an additional concession of 25% on the interest rate.
Salaried individuals can get loans of up to Rs. 1 crore or twice their gross annual income. Businessmen can avail of loans up to thrice their gross annual income over the past 2 years. You can also avail of loans to install CNG/LPG gas kits in new or old four wheelers together with your car loan or separately.
In order to avail of a car loan from Bank of Baroda, you should fit the criteria set out by the bank.
When you apply for a car loan, a few factors come into play that will affect your eligibility.
Age - Every bank has an age bar within which they will provide you a loan. Bank of Baroda requires you to be at least 21 years old. The bank also needs to be safe with the maximum age limit. They restrict the maximum age for salaried individuals to the retirement age. For business people, it is set at 65 years. By this maximum age limit, you should complete repaying the loan.
Income - Your income will determine how much of a loan you are eligible for. For instance, if you are earning a gross annual income of Rs. 6 lakhs, you can get a car loan from Bank of Baroda of Rs. 12 lakhs. The maximum loan amount is capped at Rs. 1 crore. For business people, the average of the past 2 years’ gross annual income is taken into account, and customers can avail of thrice that income.
Credit Score - Credit scores have become all-important in the banking world today. Before banks can lend you money, they need to know you’re a worthy customer. So banks inquire about your CIBIL score to see what kind of credit consumer you have been in the past. A low score can affect your car loan eligibility because it may lead banks to think that you are not credible.
Debt-to-income ratio is also important when it comes to taking out loans. If you currently have other debt such as credit cards, personal loans, home loans and the like, your debt-to-income ratio will be high. Banks will lend you only so much that they feel you will be able to pay back. Usually the EMIs you have to pay should not exceed 40-50% of your salary.
CIBIL scores are determined by a number of instances that are committed by you when you take out loans. Your credit card spending and repayment patterns, loan repayments, amount of unsecured debt, defaults on payments, late payments are all taken into account. Repaying EMIs on time drives your score up. Paying credit card bills in full also works in favor for a good credit score. On the other hand, defaults and late payments can take away points and result in a lower score. Good scores gives bank’s a good impression of you, and the process of your loan will be smoother, quicker and easier.
To secure a Bank of Baroda Car Loan and buy the car you need, you need to meet the eligibility requirements. If you find that you are not eligible or the loan amount is not enough, there are ways to change that.
Before you apply for a Bank of Baroda Car Loan, you can check to see if you are eligible using a calculator that is available online. Eligibility calculators help you make your loan process easy from the get go. These calculators need a few details to generate your results. Input details such as your income, age, the car you want, the loan amount you need and you will find out if you are eligible for it. Some calculators will tell you how much of finance you qualify for. Use a Bank of Baroda Car loan eligibility calculator to find out if you can get a car loan to buy the car of your dreams.