If you are looking to purchase a four-wheeler, old or new, Central Bank of India offers car loans to help you secure the car you want. Car loans are provided for personal use vehicles. Get up to Rs. 75 lakhs finance for a new car. For used cars, Central Bank of India will provide you with up to Rs. 10 lakhs. Pay the loan back in 84 months for new cars. For used vehicles up to 3 years old, you can avail of a 60 month tenure. Cars that are much older, 3 years and above, the repayment tenure is 48 months.
In order to avail of a car loan, you need to be eligible first. For a car loan from Central Bank of India, the following is the eligibility criteria.
Upon application for a car loan, a number of factors come in to play different roles in determining your eligibility.
Age - Your age is an important criteria. Usually banks prefer people who are 21 years and above, but Central Bank of India has lowered the age bar to 18 years. It’s a plus point for youngsters who want to purchase their own vehicle. The maximum age at which you can avail this loan is limited to 65 years.
Income - Banks won’t give you a loan if you are not earning money which will enable you to pay it back. You should be able to show regular income. Documentation is required to support your income claims. A steady job or a stable source of income will play in your favor when you apply for a loan. To be approved of a Central Bank of India, you should be earning at least Rs. 2,40,000 per annum.
Debt-to-income ratio - If you have a loan, or any other EMIs that you are paying off presently, this makes a difference in your eligible loan amount. Usually, the income you take home should be at least 40-50% of your salary after taking into account all deductions and EMIs.You can check your EMI deductions using car loan EMI calculator tool online
CIBIL Score - When you apply for a loan, banks will check your credit score to determine the type of customer your are. A good score means you are regular with your EMI payments and are reliable. Banks usually require a score of around 750 to qualify for a loan.
CIBIL scores play a pivotal role in the credit world of India. The Credit Information Bureau India Limited, known as CIBIL, records all credit activity in India. Every individual's track record related to loans, credit cards and other lines of credit are kept with CIBIL, and a score is determined based on your behaviour and patterns. If you default on EMI payments or make payments past the due date, it shows that you are unable to make ends meet and make the payments on time. If you take out too much debt, spend over your credit limit, or you apply for too many loans, it could depict that you are credit hungry, or you need so much credit to survive. This leads to a low score and that means banks will be reluctant to loan you money because you are not the ideal and reliable customer. So CIBIL scores are important if you need to take a loan. If you plan to live your life without a loan or credit card, then CIBIL scores don’t matter. But if you need a loan sometime in your life, CIBIL can help you secure your loan. A good score will also give you leverage to bargain with the terms and conditions of the loan.
If you are not eligible, you can make a few changes to increase your chances for a Central Bank of India Car Loan. You could also increase the loan amount you can get from the bank.
Steady income - You need to show that you are stable and can repay all the EMIs till the end of the loan. Secure a job that will keep you happy and steady. Stick to the line of business you are in. Constantly jumping jobs or lines of work shows that you are erratic and your income may be sporadic. So a permanent source of income will play in your favor.
Improve your CIBIL score - You can purchase your CIBIL score on the CIBIL website. Find out why your score is not doing well and take steps to increase your score. You could get a credit card and spend wisely. Spend only what you can return on time and in full. Make advance payments and never default on your payments.
Co-applicants - You can make a member of your immediate family or your spouse a co-applicant in the loan. Their income will also be considered as part of the total income earned. You will be able to secure a larger loan amount or at least meet the income requirements.
Down payment - If you can offer a larger down payment, the loan approval will be easier. Your loan terms and conditions will also be lighter.
There are calculators available online to check if you qualify for a car loan. Make use of these calculators to determine your eligibility. You could use the results from a Central Bank of India Car Loan Eligibility Calculator to improve your eligibility before you even apply for a Central Bank of India car loan.
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