|Car Loan Eligibility Particulars||Details|
|Minimum Age||18 years|
|Maximum age||60 Years for salaried & 65 years for self-employed and businessmen|
|Monthly income of loan applicant||Rs.10,000 per month|
|Pre-existing EMI amount||Depends on loan amount, loan tenure, and interest rate|
|Country/Place of residence||India Rural/semi-urban/urban|
|Stability in residence||At least 1-year stay at present residence|
|Car manufacturer||Any approved Indian or foreign car manufacturer|
|Car model||Any approved car model|
|Type of employment||Salaried or self|
|Date of birth||Applicant’s age should be at least 18 years and not more than 75 years|
|Type of residence||Any approved residence with a good parking space inside or outside the house|
Car loans are advances made by banks and other auto-finance companies to financially enable borrowers to purchase a car for private or commercial use.
In today’s world, a car can come in handy in a number of different situations. Not only does it help in commuting from one place to another, it also is a lot safer to travel in when compared to a two-wheeler. There are some who purchase a car to raise their status in society while others have a more practical reason for their purchase. Either way, a car comes with its own features and benefits. A number of car dealers and financers have developed new schemes to help individuals make their dreams of owning a car come true. There are a various banks and lenders who have developed new and lucrative car loan products to aid new car owners. These products are generally offered at low interest rates to make them affordable for all divisions of society. Each one of these banks and financiers have a pre-set eligibility criteria. These criteria may range from one lender to another.
Car Loan Eligibility differs based on the criteria set by the lender taking into account the borrower’s profile.
If an individual intends on applying for a car loan with SBI Bank, he/she should be aged between 21 to 65 years. The individual should belong to any one of the following categories mentioned below:
|Category||Annual Income||Maximum Loan Amount|
||Net Annual Income should be greater than Rs.3 lakh||Net Monthly Income times 48|
||Gross Taxable or Net Profit income of over Rs.4 lakh p.a.||Gross Taxable Income or Net Profit times 4|
||Net Annual Income of the applicant should be greater than Rs.4 lakh||Net Annual Income times 3|
If an individual applying for a car loan from Axis Bank is a salaried applicant, he/she should be aged between 21 to 70 years. If the applicant is self-employed, the applicant should be aged between 18 and 75 years. The eligibility criteria for Axis Bank:
|Category||Self-Employed Individual||Salaried||Self-Employed Non-Individual|
|Income||Rs.1.8 lakh p.a. for standard and premium cars||Rs.2.4 lakh p.a. for standard and premium cars||Rs.1.8 lakh p.a. for standard and premium cars|
|Income Proof||Latest ITR||Form 16 and latest salary slip||ITRs for the past 2 years, computation of income, and audited financials of 2 years|
|Job Stability||Minimum of 3 years with the same employer||Minimum of 1 year of employment in the same stream of business||Minimum of 3 years of employment in the same stream of business|
If an individual applying for a car loan from HDFC Bank is a salaried applicant, he/she should be aged between 21 to 60 years. If the applicant is self-employed, the applicant should be aged between 21 and 65 years. The eligibility criteria for HDFC Bank:
|Category||Self-Employed Individual||Salaried||Self-Employed Non-Individual|
|Income||Rs.60,000 p.a. for standard cars and Rs.1 lakh p.a. for mid-sized and premium vehicles||Minimum annual income of Rs.1.8 lakh which includes the income of a spouse or co-applicant||Rs.60,000 p.a. for standard cars and Rs.1.5 lakh p.a. for car loans|
|Income Proof||Latest ITR||Form 16 and salary slips||ITRs for the past 2 years, computation of income, and audited financials of 2 years|
|Job Stability||Should be in the business for a minimum of 2 years||Minimum employment of 2 years and a minimum of 1 year employed with current employer||Minimum of Rs.2.5 lakh p.a. turnover|
A Car Loan Eligibility Calculator is a tool used to determine the car loan amount that a person can apply for with a bank. The eligibility calculator can help an individual get a preview of the percentage of the maximum loan amount that can be sanctioned by the bank. The maximum loan amount and tenure of the loan vary depending on whether the car is new or used, value of the car, and the maximum EMI that the applicant can pay. The car loan amount sanctioned by a banking institution also depends on the loan tenure opted for and the monthly income of the loan applicant.
An individual will have to provide a few basic details such as:
With a Car Loan Eligibility Calculator, an individual can compare car loan amounts and tenures offered by various banks. Once an individual selects either the “New Car or Used Car” options, they would have to input their monthly income and the EMI amount on any existing loan amount.
A number of these lenders offer lucrative car loan schemes to salaried individuals. With a steady income, these individuals are more likely to repay their car loan without any hiccups. Depending on the type of car loan that’s available, banks and financiers have different conditions and criteria that an individual would have to meet. A salaried individual should earn more than Rs.2 lakh per annum to be eligible for most car loans. These individuals will be eligible to avail a car loan ranging between Rs.6 lakh and Rs.7 lakh at an affordable rate of interest. Salaried individuals who earn an annual salary that’s mentioned will be entitled to receive a higher car loan amount.
A car loan is sanctioned to an individual after he/she has submitted their salary slips along with their PAN card information. In some cases, financial firms or banks will require a copy of the applicant’s income tax returns which were paid by the applicant in the previous financial year. Other requirements may include the type of work that they are involved in. The lender will want to ensure that the applicant has a stable job to ensure that the applicant has a steady income coming in during the tenure of the car loan. The applicant will also have to provide a PAT (Profit After Tax) if they work in a private firm or company. The minimum PAT should be over Rs.2 lakh. The business of the company or firm that the applicant is working for must show stability for more than 3 years.
In today’s times, banks and lenders have made it easy for an individual to apply for a car loan. With vehicle financing being made readily available online, people can upload their documents and have a car loan sanctioned in no time at all. Auto dealers help their customers finance their vehicles by providing all necessary information that a person would require. Extensive research can help a person zone in on a car loan scheme that best suits their needs and requirements. An individual who’s looking for a car loan option can also visit a financial website like BankBazaar to search and compare car loans offered by various banks to help them choose a suitable car loan.
Did you know Salaried Employees can get Pre-approved Car Loans?
Applicants who have a salary account with certain banks can get pre-approved loans if they are employed at any of the following organisations:
If you apply for a car loan at a bank that you have been currently banking with, then you not only have better chances of loan approval but also get the added benefit of minimum paperwork.
With the used car market steadily growing in India, banks and lenders have realised that affordable and lucrative car loan options would bear fruit in the auto market. Lenders have realised this and have started introducing used car loan products into the auto market to cater to the needs and requirements of the people. In today’s times, car owners change cars every few years which has resulted in a number of used cars entering the market. A buyer can either purchase a used car from the original owner directly or they can purchase their car from a certified dealer. Banks have been quite flexible in offering customisation options which customers can avail on their used car loans. An individual is eligible for a used car loan option if they meet the following criteria:
A borrower can submit their PAN Card, passport, driving licence or any other document that has been issued by the government.
1. Proof of Age: The borrower's age should be more than 21 years to avail a used car loan. The borrower can provide a relevant document that has been authorised by a legal authority for proof of age. Documents like ration card, driving license, voters card, passport, school leaving certificate, etc. are accepted.
2. Proof of Income:Salaried individuals can submit their ITR/Form-16/Salary Slips as a proof of income. Self-employed individuals can submit their balance sheets or ITRs. P&L accounts can also be submitted.
3. Proof of Address: A borrower can submit their driving license, ration card, voters card, school leaving certificate, passport etc.
Choosing the right car loan can be a tedious job requiring a lot of research and time. But if a borrower does their research on car loans offered by various banks and lenders, he/she can save a lot of money when choosing their car loan. With an increase in consumer needs, car makers have launched a number of new products that come with attractive features. A good car loan can help a potential car owner realise their dream of owning their own four-wheeler. Some of the important points that a borrower will have to keep in mind are:
In summary, a lot goes into the whole process of selecting and applying for a car loan with a bank or lender. A borrower will spend a good deal of time in ensuring that the car loan that has been sanctioned is repaid with interest. A car loan can be a very handy tool to possess and people who wish to purchase a new car can do so with the help of a car loan that's sanctioned by a reliable bank or lender.
Nowadays, it is easy to apply for a car loan from the comfort of your home or office. All you have to do is visit the bank website, download the application form, fill it up and submit it along with the necessary documents. You can also visit the nearest bank branch to submit the application form and get the guidance of a bank executive on the car loan application process.
Documents required to support car loan applications can vary depending on the lender.
|For salaried||For self-employed|
|Car loan application form along with photograph, proof of identity, proof of residential address, most recent salary slips, Form 16, and bank statement for proof of income||Car loan application form along with photograph, proof of identity, proof of residential address, most recent Income Tax Returns, and bank statement for proof of income|
|For salaried||For self-employed|
|Car loan application form along with photograph, proof of identity, proof of age, proof of residential address, most recent salary slips, Form 16, and bank statement for proof of income||Car loan application form along with photograph, proof of identity, proof of residential address, most recent Income Tax Returns, and bank statement for proof of income|
|For salaried||For self-employed|
|Car loan application form along with photograph, proof of identity, proof of age, proof of residential address, most recent salary slips, Form 16, and bank statement for the last 6 months||Car loan application form along with photograph, proof of identity, proof of residential address, most recent Income Tax Returns, bank statement for the last 6 months, audited balance sheet, profit and loss account|
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