If you really think about it, it's easier getting a loan for a car than a loan for bus fare!
  • Car Loan BYTES FROM OUR KITCHEN

    Basic Requirements for Co-Signing a Car Loan

    The approval chances of a borrower with bad credit score can be increased significantly by using a co-signer. A co-signer is basically an individual who guarantees that the borrower will pay all the EMIs on time and also assures that in case of default, he/she will pay the pending loan amount. Finding a reliable co-signer is not an easy task as people generally hesitate to take the responsibility of repaying a car loan amount in case of default. Most of the times, people don’t turn up to become a loan guarantor.

    Even if the borrower manages to arrange for a co-signer, everybody is not allowed to sign a loan agreement with the borrower. The co-signer can be anybody from the list of family members and friends of the borrower. He/she needn’t be a blood relative. Old family members of the borrower or other relatives or friends who have a sound job history and solid credit record are considered to be eligible as a guarantor. But there are a few eligibility criteria that a person needs to fulfil to become a co-signer for any borrower who is not having a good credit history and repayment ability.

    Benefits of Using a Co-Signer

    Whether you are a borrower with poor credit history, a student, a first-time driver or anybody who is not considered to be eligible for a car loan, you can arrange for a co-signer to increase the loan approval chances. Here are the benefits of using a co-signer while applying for a car loan:

    • Helps to get low-interest rate- When you apply for a car loan along with a co-signer, you will be able to get loans at better interest rates compared to the rate that you would had by applying for it solo. Since lenders usually offer interest rates based on the credit risk of the borrower, the inclusion of a co-signer increase the loan repayment chances and this is why the lenders feel confident to offer loan at better rates. This is indeed a good way to get loan approval in spite of having a bad credit-record that too at an affordable interest rate.
    • Builds good credit record- This is another benefit of having an auto loan with a co-signer. When a first-time credit borrower applies for a car loan with a guarantor it becomes easy for him/her to pay the loan amount on time. Since he/she pays the EMIs on time without piling any debts, this in return improves the credit history and the credit score/rating of the borrower. As a result, the borrower in future can apply for any other loan even without having any guarantor.
    • Acts as a motivator- Your co-signer being someone with a good credit record, sound financial history and strong job/employment status is wise about how a loan works and what should be done to avoid unpleasant situations. In simpler words, if you have a cosigner with you, he/she will motivate you to make the payments on time. Also, if you are not attentive towards the payments or tend to miss the payment dates, he/she being a responsible individual will bring it to your notice before the situation becomes unmanageable.

    Basic Requirements to become a Car Loan Co-Signer

    As told earlier, everybody is not eligible to become a car loan co-signer. There are a few basic criteria mandated by the banks which a person needs to fulfil for becoming a car loan guarantor. Here are the basic requirements for co-signing a car loan:

    • Willingness to sign loan agreement- Though obvious, but a person who is willing to become a co-signer must be firm in the decision of taking the responsibility. To ensure this, banks mandate the person to sign a contract where he/she is supposed to state that he/she will pay all the pending loan amount in case the borrower fails to do that. No verbal agreement or oral promise is accepted by the banks. The guarantee must be in written form only. Also, the person needs to agree with all the terms and conditions put forth by the bank and then give his/her consent for the same on paper.
    • Close relation with the borrower-This criteria varies from lender to lender. While some banks and financial agencies permit unrelated people or distant family members to become a car loan co-signer, there are some other lenders who are very strict with their terms and allow only co-signers who share the same residential address with the borrower. As proof, they would require the utility bills addressed to the guarantor. Usually, people having blood relation with you like your family members or close friends can become co-signers.
    • A decent credit score/rating- The person whom you have chosen to co-sign your car loan agreement along with you should have a good credit history of paying all his/her loan EMIs and credit card payments on time. Generally, banks look for a credit rating of 750 or even more when giving approval to a person to become a car loan co-signer. A person having a strong credit rating is considered to be a credible person who can shoulder the responsibility well.
    • Regular income & payment ability- Banks want to assess the repayment ability of a co-signer before giving him/her the approval. In order to check how credible the guarantor is he/she needs to provide income proofs to the lender in the form of salary slips, bank statements, and other related documents if the person is a salaried employee. In cases where a guarantor is a self-employed person or a business owner, he/she is required to submit their ITR (Income Tax Returns).
    • Residence & employment stability proof: Though this is not a mandatory criteria for co-signing a car loan agreement, some banks want the willing co-signers to furnish proofs of their employment and residence stability. Co-signers having a constant cash flow and permanent address are the ones who are preferred by the banks as they can easily rely on such persons and feel that their money is in safe hands.

    So, these are the basic requirements for co-signing a car loan in India. But just meeting these basic requirements is not enough for becoming eligible as a co-signer. A co-signer will be the person who will be equally responsible to pay the loan amount and the EMIs on time if you fail to pay that and this is why the person must be well aware of his/her responsibility before signing the agreement. Moreover, the credit history and the credit record of the guarantor will get negatively affected if the payments are missed and positively in case of consistent and timely payment.

    Car Loan Reviews

    • SBI Car Loan
      "SBI provides loan with lower interest"
      0.5 4.0/5 "Great!"
      I have purchased a Maruti WagonR car by using the SBI car loan. They have provided me a loan within 2 days. They have collected the all the documents and the next day they have given a cheque directly to the dealer and i have got the car on the same day. They have given me a interest rate of 11.5% which is less compared to other bank. I have selected the tenure period of 3 years and i have pre-closed in 1.5 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 20, 2019
    • HDFC Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      My car loan was taken with HDFC bank,they have given me sufficient loan amount,it is enough for me,and i applied this card through showroom ,the bank executive came to my place and took the documents and in net banking i applied i got loan soon, the rate of interest they have charged me up to 10.5% it is nominal,they have not charged me processing fee,it is zero processing fee,still this loan is running.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 20, 2019
    • HDFC Bank Car Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      My car loan experience with HDFC has been good and the loan amount which they had provided has been sufficient. Overall their has been a help from their customer support as well. The loan amount is 1170000 and it is good enough . The interest rate with them has been nominal and the tenure period is 5 year .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 20, 2019
    • Federal Bank Car Loan
      "Very good experience"
      0.5 4.0/5 "Great!"
      I have got my card loan through FEDERAL BANK . While getting the loan the process is very easy and the documentation part is also very easy . The tenure period is sufficient and the rate of interest and processing fee is very nominal . The loan amount is very satisfactory .
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 19, 2019
    • HDFC Bank Car Loan
      "Good Car Loan services"
      0.5 5.0/5 "Blown Away!"
      I have applied the car loan through online. When i chose the car loan, i have selected the HDFC bank because of the services. They have sanctioned the loan on time. I got the loan amount of Rs. 5 lakhs with the tenure period of the 3 years. They were offering me a pre-closure and partial payment with some charges.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 19, 2019
    • Axis Bank Car Loan
      "Its Good"
      0.5 4.0/5 "Great!"
      I have closed AXIS car loan, the paper work was smooth at the time. I paid the all the emi and closed it. Finally I got the NOC letter from the bank. They responded well at the time of taking loan however I approached the bank through the dealer. Interest was almost same as other bank for my first car it was Hyundai I10.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Jan 19, 2019
    • Axis Bank Car Loan
      "Satisfactory"
      0.5 4.0/5 "Great!"
      For my Mahindra verito car, AXIS bank sanctioned the loan which I was required for the purchased and they gave me the flexible emi as per my preference. I got the NOC letter from the bank for the car loan. I have taken two car loans from the same bank.
      Was this review helpful? 0
      , secunderabad
      Reviewed on Jan 19, 2019
    • HDFC Bank Car Loan
      "Hassle Free Experience"
      0.5 4.0/5 "Great!"
      I am fine with the documentation process of HDFC car loan, they done everything on time. They are providing good interest in the market. I took the loan amount around Rs. 5.5 lakhs and they approved upto 90% of loan and I got the car delivery on time.
      Was this review helpful? 0
      , lucknow
      Reviewed on Jan 19, 2019
    • Union Bank of India Car Loan
      "Good"
      0.5 4.0/5 "Great!"
      I have taken a car loan in Union Bank of India before 2 years. The rate of interest is minimum which is 9.9%. I have purchased Grand i10 car and have paid some down payment. I think they took bit longer to process the loan. The customer service is good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 19, 2019
    • Bank of Baroda Car Loan
      "Normal Loan"
      0.5 3.0/5 "Satisfactory"
      They have approved the loan immediately from Bank of Baroda hence i have chosen them. I got the car loan in last year August. I have applied the loan amount of Rs. 8 lakhs and they have approved the same. They have charged me a processing fee of Rs. 1800 and the interest rate is nominal.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 19, 2019
    • HDFC Bank Car Loan
      "Good car loan in the market"
      0.5 5.0/5 "Blown Away!"
      At the time of my purchase, i have taken a car loan with HDFC and i was not care about the interest since i don't have any idea about it. The loan got approved immediately. The documentation process was easy and smooth. Total tenure period the loan 36 months. I have not spoke with the customer care service so far.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 19, 2019
    • Bank of Baroda Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The experience with them has been quite good with this loan where the loan amount has been sufficient. The interest rate which they offered has been nominal when compared with the market rate and there has not been any extra charges which they had made so far. Their customer support team had also been supportive as well.
      Was this review helpful? 3
      , navi mumbai
      Reviewed on Jan 18, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      Before three years I purchased second vehicle that is Hyundai I 10 , the documentation process was good with HDFC. The dealer coordinated with the bank, hence the process was quick. I got multiple options but I chosen HDFC, the Interest rate is better because I am an existing customer.
      Was this review helpful? 1
      , delhi
      Reviewed on Jan 18, 2019
    • HDFC Bank Car Loan
      "Good Experience"
      0.5 5.0/5 "Blown Away!"
      I was taken car loan from HDFC, first time I purchased SANTRO car, the documentation was very convenient. They gave me the door step service I went to the dealer and they done the process, and on time I got the car deliver. They gave me the flexible emi option.
      Was this review helpful? 1
      , delhi
      Reviewed on Jan 18, 2019
    • SBI Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been quite a good experience i had with this car loan and the loan amount which they had provided has been sufficient as well. The interest rate with them was around 9.25% which was nominal when compared with the market rate. The charges which they had made has been nominal as well, and even their customer support has been responsive as well.
      Was this review helpful? 3
      , bhubaneshwar
      Reviewed on Jan 17, 2019
    • SBI Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been taken my car loan with State bank of India, they have given me sufficient loan amount, and i am satisfied with the loan amount , and the rate of interest they have charged me up to 9.45% which is bit high compare to other bank,i have asked for 9 % but its okay, and the processing fee they have charged me was nominal,overall service is good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 17, 2019
    • Kotak Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been taken my car loan with Kotak mahindra bank recently ,like 2 months before i took this loan, and i am happy with the loan amount they have given me ,it was sufficient for me, and the rate of interest they have charged me up to 9.3% which was nominal for me and the processing fee they have charged me was nominal, the loan amount process went smoothly. the overall service rendered by them was really good.
      Was this review helpful? 1
      , chennai
      Reviewed on Jan 17, 2019
    • Central Bank of India Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It was a good experience i had with this loan and the loan amount which they had provided has been sufficient. The interest rate with them is quite nominal when compared with the market rate. There has not been any sort of additional charges which they had made so far.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 13, 2019
    • SBI Car Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I took my car loan in State Bank of India by last year. The charges are normal. I have spend down payment nearly 1L out of 7L. The branch is near to my residence so will never contact the customer service. The process was immediate and it was completed within 2 days.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Jan 12, 2019
    • HDFC Bank Car Loan
      "Its Excellent"
      0.5 4.5/5 "Excellent!"
      HDFC gave me the door step service for the car loan. I took the loan before three years. It was the fantastic experience for me because I got the better interest, I took the loan for 5 years but I done the foreclose in three years , there was no charges for it.
      Was this review helpful? 2
      , ahmedabad
      Reviewed on Jan 11, 2019
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