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  • Wondering about your car loan eligibility and what to do to increase your chances of approval? BankBazaar gives you all the information you require on car loan eligibility from top banks.

    Get a reliable guide to choosing the right car loan for you so that you can make the right choice and apply for the right car loan right now.

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    Car Loan Eligibility Criteria

    Your eligibility for a car loan will vary from lender to lender but many of the lenders will look for the below-given criteria:

    Particulars Details
    Minimum Age of the Applicant 18 years
    Maximum Age of the Applicant 60 years for salaried applicants and 65 years for self-employed applicants
    Minimum Annual Income Rs.3 lakh
    Car Model Any approved car model
    Type of Employment Salaried or self-employed
    Country or Place of Residence India (rural/semi-urban/urban areas)
    Duration of Stay in Current Residence A minimum of 1 year

    Car Loan Eligibility Criteria for Top Banks

    While applying for a new car loan, you will need to meet certain eligibility criteria and these requirements can differ from lender to lender. Let us take a look at the requirements for some of the top lenders:

    Axis Bank Car Loan Eligibility

    Salaried Individuals
    Minimum Age 21 years
    Maximum Age 70 years at the time of loan maturity
    Minimum Annual Income Rs.2.4 lakh
    Employment Status Should be in continuous employment for at least 1 year
    Other Criteria Should be able to produce Form 16 and latest salary slip to prove income eligibility
    Who is Eligible?
    • Applicants holding salary account with Axis Bank since the last 3 months
    • Applicants employed at MNCs, public and private limited companies, and permanent employees of state/central government/PSUs/reputed colleges/schools
    Self-Employed Individuals
    Minimum Age 18 years
    Maximum Age 75 years at the time of loan maturity
    Minimum Annual Income Rs.1.8 lakh – Rs.2 lakh
    Employment/Business Status Should be in the same line of business for at least 3 years
    Other Criteria Should be able to produce latest Income Tax Returns to prove income eligibility

    State Bank of India Car Loan Eligibility

    Category Minimum Income Criteria Maximum Loan Amount Age Criteria
    Employees of central and state government, public sector undertakings (PSUs), private companies, reputed establishments Rs.2.5 lakh p.a. 48 times of the net monthly income 21 years to 65 years
    Self-employed professionals, businessman, partnership/proprietary firms Rs.3 lakh p.a. 4 times gross taxable income or net profit 21 years to 65 years
    Individuals involved in agricultural and allied activities Rs.4 lakh p.a. (can include co-applicant's income) 3 times of net annual income 21 years to 65 years

    ICICI Bank Car Loan Eligibility

    You can calculate your eligibility for a car loan from ICICI Bank by using the ‘Car Loan Eligibility Calculator’ available on their official website. You will need to enter details such as your contact number, type of residence, type of employment, the car model you wish to purchase, ex-showroom price of the car, etc., to calculate your eligibility.

    Eligibility Criteria for Car Loan
    Car Loan Eligibility

    HDFC Bank Car Loan Eligibility

    HDFC Bank car loan can be availed by the below-mentioned individuals/entities:

    • Salaried individuals
    • Self-employed sole proprietors
    • Self-employed individuals/professionals at partnership firms
    • Self-employed individuals/professionals who own private companies
    • Self-employed individuals in public-limited companies including directors
    Salaried Applicants
    Minimum Age 21 years at the time of loan application
    Maximum Age 60 years when the loan tenure ends
    Job Stability Should have worked continuously for 2 years and at least 1 year with the current employer
    Minimum Annual Income Rs.3 lakh
    Other Criteria Should have a post-paid mobile/telephone
    Self-Employed Individuals/Professionals (Sole Proprietorship)
    Minimum Age 21 years at the time of loan application
    Maximum Age 65 years when the loan tenure ends
    Business Stability Should have been in the same line of business for at least 2 years
    Minimum Annual Income Rs.3 lakh
    Self-Employed Individuals/Professionals (Partnership Firms/Private Limited Companies/Public Limited Companies)
    Minimum Annual Income Rs.3 lakh

    Car Loan Eligibility Calculator

    Many banks, such as ICICI Bank, HDFC Bank, Kotak Mahindra Bank, etc., lets you calculate your eligibility for a car loan through a ‘Car Loan Eligibility Calculator’. This tool is available on the bank’s official website. Upon entering basic details such as your contact number, residence stability, type of employment, model and ex-showroom price of the car, etc., the tool will check if you are eligible for a car loan. The information you are asked to input, will vary from bank to bank and hence, it is recommended that you check the eligibility for specific lenders before you apply for a car loan.

    When you are applying for a pre-owned car loan, you will be required to meet a few basic eligibility criteria. These requirements can differ from lender to lender. These are the criteria for some of the top lenders:

    HDFC Bank Car Loan Eligibility

    For salaried individuals

    • This loan can be taken by chartered accountants, doctors, and employees working at private limited companies and public sector undertakings.
    • The applicant must be at least 21 years old and not more than 60 years old when the loan tenure has come to an end.
    • The applicant must have been working at least for 2 years and for at least 1 year at the present company.
    • The applicant should be earning at least Rs.2.5 lakh p.a. and this can include the income of the spouse.

    For self-employed sole proprietors

    • Applicant must be at least 25 years old and not more than 65 years old when the tenure comes to an end.
    • Must have been in business at least for 3 years.
    • Must be earning at least Rs.2.5 lakh p.a.

    For self-employed individuals having private limited companies

    • Must have a landline at the office of the company
    • Must be earning at least Rs.2.5 lakh p.a.

    For self-employed individuals belonging to Hindu Undivided Families (HUFs)

    • Must be an individual in a business that belongs to HUF.
    • The Karta needs to be the loan co-applicant.
    • Must have a phone at the office of the company and at the residence. If only 1 landline connection is there, then a post-paid mobile which is only 3 months old can be used for applying.

    ICICI Bank Car Loan Eligibility

    You can receive a loan amount of up to 80% of the car’s valuation with a maximum period of 60 months.

    Axis Bank Car Loan Eligibility

    For salaried applicants

    • Must be at least 21 years old and not more than 70 years old when the loan matures.
    • The net annual salary should be at least Rs.2.4 lakh p.a.
    • Should have been employed at least for 1 year.
    • Should provide Form 16 and the latest salary slip to determine income eligibility.

    For self-employed applicants

    • Must be at least 18 years old and not more than 75 years old when the loan matures.
    • The net annual business income should be at least Rs.1.8 lakh p.a. for certain models and Rs.2 lakh p.a. for other models.
    • Should provide the latest Income Tax Returns to determine income eligibility.
    • Should have been employed at least for 3 years in the same business line.

    For self-employed non-individuals

    • The net annual business income should be at least Rs.1.8 lakh p.a. for certain models and Rs.2 lakh p.a. for other models.
    • Should provide the latest Income Tax Returns for 2 years and audited financials for 2 years to determine income eligibility.
    • Should have been in the same business line at least for 3 years.

    Car Loan Eligibility for Salaried Individuals/Self-Employed Individuals

    The eligibility criteria for salaried as well as self-employed car loan applicants can vary from lender to lender. However, the common eligibility requirements are as follows:

    For salaried individuals

    • The applicant should be at least 21 years old and not more than 60 years old.
    • The applicant should have been working in a job for at least 2 years. He or she should have been working for at least 1 year with the present employer.
    • The applicant’s income should be at least Rs.3 lakh per year.
    • The applicant should be working in a private limited company or a public sector undertaking (PSU). This can be a state, central, or a local body.
    • The applicant should have a post-paid mobile connection or a telephone connection.

    For self-employed individuals

    • The applicant should be at least 21 years old and not more than 65 years old.
    • The applicant should have been in the business for at least 2 years.
    • The applicant should be a self-employed partner or a sole proprietor in any kind of trading, manufacturing, or service-related business. This can be a private limited company or a public limited company.
    • The turnover of the business should be at least Rs.3 lakh.

    Perfect Car Loan Deals for you

    Factors affecting Car Loan Eligibility

    • Credit Score: Lenders check your credit score in order to assess your repayment capacity and your repayment behaviour for your previous or existing debts. If you have a credit score of 750 or above, your lender will be of the opinion that you are responsible about repaying your loan on time and hence, will most likely approve your loan application easily.
    • Type of Car: The type of car that you want to buy with car financing will determine your car loan eligibility. Each car model will have a particular resale value as per the features and specifications of the car. Hence, if the resale value of the car that you want is high, then your car loan eligibility will also be high. Since a car is an asset whose value depreciates with time, the resale value is taken into consideration in order to determine the eligibility.
    • Employment status and longevity of business for applicants: If a salaried employee is applying for a car loan, he or she should have been working in his or her present company for a minimum of 1 year and should have been working for a minimum of 2 to 3 years. If the applicant is a self-employed person, they should have been in the same business for a period of at least 2 to 3 years.
    • Income of applicant: When you apply for an auto loan, your lender will check your income levels in order to assess if you can pay the EMIs on time or not. If you have a higher income, the lender will be of the opinion that you can repay easily without any difficulty. However, if your income is slightly on the lower side, then your lender may be doubtful if you can pay every car loan EMI on time. Hence, the lender may give you a lower loan amount.
    • Your Employer’s Reputation: Sometimes, the company that you work for will help in improving your car loan eligibility. For example, if you are an employee at a Fortune 100 company or any other company that is ranking well, then your loan eligibility will improve. This way, you will be able to receive a higher loan amount to finance the purchase of your car. On the other hand, if you are not working in any such company, then it is important that you earn a high income in order to get a higher loan amount approved.
    • Relationship with Your Lender: If you already have an account with some bank and if you have a good relationship with this bank, then you can negotiate with them to get a higher loan amount approved at a lower rate.

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    Car Loan Eligibility Reviews

    • Tata Finance Car Loan
      "Best loan "
      0.5 5.0/5 "Blown Away!"
      I have taken a Car loan in TATA FINANCE and it was completed without any issues. Their customer service is very good in providing the solutions. The interest rate is lower compared to others and there was no processing fee. I have purchased Maruti Alto LX.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 23, 2020
    • Cholamandalam Finance
      Cholamandalam Finance Car Loan
      "Satisfactory"
      0.5 4.0/5 "Great!"
      I have taken car loan directly through Chola Mandalam Finance .The rate of interest and the processing fee was high .The car model was 2011 and the name of the vehicle is Wagon R .This loan was referred by car dealer hence taken .Everything is good and the process was smooth .
      Was this review helpful? 1
      , pune
      Reviewed on Jan 22, 2020
    • HDFC Bank Car Loan
      "Good Car Loan Service"
      0.5 4.0/5 "Great!"
      HDFC bank has provided me a pre- approved car loan offer worth of Rs. 8L hence i didn't compare the details with anyone and took the loan from them. I got the loan amount of Rs. 3.3 lakhs and I'm paying EMI amount of Rs. 9,100 every month. I have chosen the duration of 4 years and i have closed it already which was a pre- closure hence they charged me 2% extra charges.
      Was this review helpful? 1
      , chennai
      Reviewed on Jan 21, 2020
    • Bank of Baroda Car Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan before 1 year from Bank Of Baroda.The car model was Renault Kwid ,The premium is paid on EMI basis,The rate of interest was less and this loan is still active .I am having good relationship with Bank of Baroda due to this got the loan immediately.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 20, 2020
    • HDFC Bank Car Loan
      "Easy to avail the car loan"
      0.5 4.0/5 "Great!"
      I had a car loan with HDFC and i have closed 1 year back. I didn't have any single issue in the duration of 3 years because the payment getting deducted from ECS. I had a two wheeler loan from HDFC post my two wheeler loan completion i got the offer for car loan so i took it. I'm not sure about the interest rates now. I took an amount of Rs. 2.25 lakhs and i paid a down payment of Rs. 50000.
      Was this review helpful? 1
      , chennai
      Reviewed on Jan 18, 2020
    • HDFC Bank Car Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan through HDFC Bank .I am not sure about rate of interest since taken long back .The vehicle variant is Hyundai I 10.The loan was successfully closed and i have paid the loan through EMI basis only .There was no drawbacks faced so far .I am satisfied with the service.
      Was this review helpful? 2
      , mumbai
      Reviewed on Jan 17, 2020
    • review Car Loan
      "Excellent Loan Service"
      0.5 5.0/5 "Blown Away!"
      From TATA Finance, i bought my car loan because the dealer convinced me where i took the car. They have sanctioned my loan immediately and i have made the down payment of Rs. 1.2 lakhs and i got the loan amount of Rs. 10.7 lakhs. I have been paying the EMI amount of Rs. 18000 on a monthly basis and i need to pay this EMI for 5 years. They do have part payment and pre-closure facility without any extra charges.
      Was this review helpful? 0
      , pune
      Reviewed on Jan 17, 2020
    • review Car Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      I have taken a car loan from TATA MOTORS FINANCE on 7 years back. I got an offer through showroom with the amount of 1.30L tenure period of 5 years. The rate of interest was nominal. EMI is nominal to pay. I had done down payment of 50K. I am not aware about pre closure. The car model is NANO. Once I had closed the loan received NOC letter on time.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 16, 2020
    • HDFC Bank Car Loan
      "Good Loan Service"
      0.5 5.0/5 "Blown Away!"
      From HDFC, i have taken my car loan because the documentation process was smooth and they approved my loan easily. Loan process was speed and they will complete all the process in 2 days. Interest rates was on a higher side. I made the down payment of Rs, 1 lakhs and i pay the EMI amount of Rs. 14000 every month. I took the loan amount of Rs. 8 lakhs with the duration of 7 years.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Jan 16, 2020
    • Sundaram Finance Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My sister was working in SUNDARAM FINANCE company, so she has suggested to take car loan on 11 years before. The amount of 2.5L with tenure period of 3 years. They have sanctioned the loan within 1 week. Rate of interest was 12.6% nominal at that time. I had done some down payment of 1.3L. EMI I used to pay of 6500 rupees. The car model is Wagon R. But I have pre closed this loan within 1.5 years and I had received NOC letter on time.
      Was this review helpful? 0
      , alleppey
      Reviewed on Jan 14, 2020
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken car loan through HDFC Bank.I am not remembering rate of interest and the processing fee .I have taken this loan long back and successfully closed as well.The name of the vehicle is Ford Figo and loan got sanctioned on time as well .The loan process was very smooth and satisfied.
      Was this review helpful? 2
      , srikakulam
      Reviewed on Jan 13, 2020
    • Syndicate Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had a best offer in Syndicate bank for Car loan. Its been completed almost 4 years. I have purchased Volkswagen polo on exchanging my old card so it took 4 days to process my loan. I have opted for 5L loan amount with 6.5% interest rate. I approached the dealer further bank executive came to my office and completed all the formalities.
      Was this review helpful? 0
      , kochi
      Reviewed on Jan 13, 2020
    • SBI Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I haven taken car loan from SBI. Everything was done on time and car was delivered on time .The rate of interest was bit high and the car model was MARUTI Suzuki Baleno .The loan amount got sanctioned on time .The loan process was clearly shared by the agent .I am satisfied with the service so far.
      Was this review helpful? 2
      , mumbai
      Reviewed on Jan 12, 2020
    • HDFC Bank Car Loan
      "Excellent service "
      0.5 5.0/5 "Blown Away!"
      I have taken a car loan with HDFC bank on 1.3 years. I got an offer directly from them. The loan amount of 6.90L which is sufficient with tenure period of 7 years. Rate of interest of 10.5% and processing fee is not aware. I had done the down payment of 1L. There is an option of pre closure after 6 months. I use to get remainder message on time to pay EMI of 10,240 rupees.
      Was this review helpful? 2
      , kochi
      Reviewed on Jan 11, 2020
    • SBI Car Loan
      "Documentation process can be improved"
      0.5 5.0/5 "Blown Away!"
      I went to SBI branch directly to apply the car loan and I have done all the paper work as well. I can make the part payment through online because of this reason i have selected this bank. I don't find any issue so far and the overall process got completed in a single day. I took the loan 2 to 3 years before and the loan is still going on.
      Was this review helpful? 2
      , chennai
      Reviewed on Jan 08, 2020
    • SBI Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      The interest rate is low, no part payment or fore closure charges. It is very flexible so I have taken a loan from SBI. Bank offered me with 13L, complete price of the car, but i have opted only for 10L with the rate of interest 9.1%. It took only 3 days to process the loan.
      Was this review helpful? 4
      , bangalore
      Reviewed on Jan 08, 2020
    • HDFC Bank Car Loan
      "Need to stand on commitment"
      0.5 5.0/5 "Blown Away!"
      I purchased Maruthi suzuki swift Dzire last month. The price of my car is 8.95L, I have opted thid loan with HDFC. I made a down payment around 2 lakhs and the remaining amount was converted as loan. The loan got processed within 2 days. They committed with 8.1% rate of interest, at last they provided the interest of 8.5%.
      Was this review helpful? 0
      , faizabad
      Reviewed on Jan 08, 2020
    • Kotak Car Loan
      "Excellent Loan Service"
      0.5 5.0/5 "Blown Away!"
      I was an employee of Kotak Mahindra bank so that i got the car loan from the same bank. Interest rate are more competitive. Since i was a employee i got a good discounts on interest rate when i took the car loan. Its going to be over by next year since tenure period is 22 years. They have sanctioned my immediately and i have made some down payment also.
      Was this review helpful? 2
      , mumbai
      Reviewed on Jan 08, 2020
    • YES Bank Car Loan
      "h"
      0.5 0.5/5 "Unacceptable"
      baseless staff behaviour.., hrassing calls before emi due date............. . ........ ......................... .............................!.....................................................................
      Was this review helpful? 0
      , ludhiana
      Reviewed on Jan 08, 2020
    • HDFC Bank Car Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I have applied for HDFC Bank car loan and chosen the car model of Maruti Dzire 2018.The rate of interest and the processing fee was very high since had a requirement availed this loan. I am planning to change the financial institution of this loan .
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 06, 2020
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