• CIBIL Score for Car Loan

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    Everyone wants to be able to drive around in the car of their dreams but everyone may not be able to afford it. Luckily there exist car loans that help you achieve that dream. A car loan will help pay for the car today. The loan can be paid back over a period of time in affordable instalments. However, there are certain prerequisites that need to be fulfilled before taking a car loan.

    Apply for Car Loan

    The general eligibility criteria for availing a car loan comprises of requirements like a minimum age of 21 years, a specified minimum monthly salary, and a good credit history. Good credit history relates to a good credit CIBIL score which, in many cases can be the deciding factor in the acceptance or rejection of a car loan application.

    CIBIL score for car loans

    CIBIL or the Credit Information Bureau (India) Limited is an organisation that was set up in the year 2000 for the purpose of collecting information about a person’s loan and credit cards and maintaining a record of the same for the purpose of developing a database of borrowers. It creates this database by collating information received from banks about a person’s borrowing and payments towards loans and credit cards.

    Once the information is collected, it is aggregated and processed to relate to a number that ranges from 300 to 900. The minimum CIBIL score for car loans accepted by most banks is 750.

    CIBIL score and applying for a car loan

    So often when someone approaches a bank to finance their dream car, their loan gets rejected despite meeting most eligibility criteria. One of the reasons for a bank to reject a car loan is a bad credit score i.e. a score that is below the minimum requirement. This leaves applicants confused as to why they have a low credit rating.

    Here are some of the reasons for a poor credit rating.

    • Late payments: If payments towards credit cards or loans are delayed time after time, it works to lower credit scores as it points to improper financial management.
    • Overdue credit cards: Even though credit card companies only require a monthly minimum amount to be paid to avoid late fees, the balance amount outstanding is still considered overdue. Consistently rolling over dues by paying only the minimum amount lowers CIBIL scores.
    • Defaulting on payments:Failing to make payments towards any line of credit i.e. credit card, loans or overdrafts etc. also constitute improper financial management which, again, serves to lower credit scores.
    • Rejected loans:If a car loan has been rejected and another one is applied for immediately after said rejection, the second loan also stands a high chance of being rejected which also leads to lower credit scores.
    • Too many car loan applications:If applications for car financing is made to multiple finance houses at the same time, they all end up requesting for the customer’s CIBIL details at the same time. This is viewed as a negative aspect and works to lower credit scores.

    How to check your CIBIL report

    CIBIL has provided an online facility to help potential borrowers check their Credit Information Reports before they apply for their car loans. It is a paid service; currently Rs.470 is charged to obtain the report. The steps to follow in this case are:

    • Apply for your credit score on the CIBIL website.
    • Enter basic information like name, identity proof details and date of birth.
    • Provide relevant contact information.
    • Make the payment to complete the process.

    After the application process is complete, they will get in touch with you and inform you of your exact credit score.

    What is a good CIBIL score for a car loan?

    Banks and financial institutions never announce what the perfect score for a car loan would be. However, it is safe to assume that a score of over 600 is good and a score of 750 upwards is more favorable.

    Do’s and Don’ts for good CIBIL score

    Like with everything else even CIBIL reports require constant maintenance. There are certain activities that you can indulge in to keep credit scores looking good. There are also some activities that need to be avoided in order to prevent negative effects to the credit score.

    • Do’s
      • The simplest thing to do to avoid damaging your credit history is to ensure all payments are made on time.
      • Keep loans to a minimum because too many lines of credit can strain your income and result in rejection of subsequent loans.
      • Make sure you check your CIBIL score yourself, because, if too many financial organisations check it on your behalf, it lowers the score.
      • Make sure you pay credit card bills in full. Paying just the minimum amount doesn’t prevent the remaining amount from being considered as overdue.
    • Don’ts
      • Don’t take too many loans because it points to mismanagement of finances.
      • Don’t max out credit cards as that too means that you are unable to live within your means and find managing personal finances difficult.
      • Don’t default on payments. Defaulting on payments gets recorded in the credit history and can haunt you for a long time.

    Getting a car loan without a CIBIL score

    Taking a car loan with a good CIBIL score come with perks, like more attractive interest rates and other goodies. However, with CIBIL scores taking the centre stage with all forms of credit, loans and credit cards, it may seem impossible to even think about a car loan without a credit history. But that is not always true. Some financial institutions may still offer car loans albeit at higher interest rates.

    The reason banks are willing to extend this offer to car loan applicants with a bad CIBIL rating is because car loans are secured with the vehicle so funded serving as collateral. This reduces the risk lenders take by approving such loans.

    Even if you meet all the criteria for a car loan, a poor CIBIL score could deny you your dream car. A good credit score could mean better rates. Therefore, it is of utmost importance that you take extra care to build, maintain or rectify your credit history.

    FAQs on CIBIL Score for Car Loan

    Q. What is the CIBIL score required to avail car loan?

    CIBIL score required for car loan is again dependent upon the lending entity. Different banks may look upon different eligibility criteria. However, a good credit history and a higher income to debt liability ratio are two very important things which banks consider before granting auto loans to customers.

    CIBIL score looks good? Apply and choose between best Car Loans in India

    CIBIL Reviews

  • Page 1 of 19 1 2 3 4 5
    • Bank Bazaar Credit Card
      "Good Experience"
      HSBC BANK
      0.5 4.0/5 "Great!"
      The Bankbazaar team has been a good one until now. Their customer care called me properly and informed me all the details in a good manner. Their website and application is pretty user friendly. I was able to check my CIBIL score for free very easily.
      Was this review helpful? 0
      , navi mumbai
      Reviewed on Jan 05, 2018
    • Bank Bazaar Car Loan
      "GOOD"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      it was a good customer service i received form the bank bazaar end .as after i registered for the loan process the Call came within 2 days . Website of bankbazaar is really easy to use and helpful . Cibil score i checked on the bankbazaar website an it was so easy i did not even pay for it . really a great experience with bankbazaar .
      Was this review helpful? 0
      , noida
      Reviewed on Nov 30, 2017
    • Bank Bazaar Credit Card
      "Good value"
      SBI CARDS
      0.5 5.0/5 "Blown Away!"
      I have been using Bankbazaar website for over a month now and have already got a Credit Card using them. Their process is very effective, you would get a call from them for sure. Apart from this I was able to check my CIBIL score and also the EMI calculator is pretty effective.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 23, 2017
    • Bank Bazaar Personal Loan
      "User friendly app,best app for financial requirements to all"
      ICICI BANK
      0.5 5.0/5 "Blown Away!"
      This is the first time, I am using this app, it is more helpful to me,with the help of this app we can take right decision regarding. I must share this to my friends as well.if we want the cibil score from bank ,they will charge us 300 rs,but with in one minute we can get our cibil score without paying any thing.Thanks to bankbazaar.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 21, 2017
    • HDFC Bank Credit Card
      "Good card to use"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I applied a credit card with HDFC bank and they approved it and I took it from them. I used their HDFC Platinum Plus credit card from 2012 to 2013 . There are no annual fees applicable to this credit card. I couldn't apply a new credit card now because my cibil score is low and I will apply a new credit card once my cibil score is good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 18, 2017
    • Bank Bazaar Credit Card
      "Experience"
      SBI CARDS
      0.5 4.5/5 "Excellent!"
      Superb application for personal financial record updation and to explore the market availability in terms of personal CIBIL score. Happy to be a part of Bankbazaar customer.Thanks and stay in touch and keep contacting for future. Enjoyed
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 17, 2017
    • Bank Bazaar Car Loan
      "Better service"
      ICICI BANK
      0.5 4.0/5 "Great!"
      It was a great experience I got with bank bazaar in regards to my car loan application. I got to know about my cibil score, without any charges. The customer support is prompt with bank bazaar. I know bank bazaar for more than 4 years. I used bank bazaar website which is easy to use and customer friendly.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Nov 17, 2017
    • Citibank Personal Loan
      "Needs to improve"
      CITIBANK
      0.5 3.0/5 "Satisfactory"
      I have applied for the personal loan from Citi bank, my loan application was closed because there was an issue with my CIBIL score. When it comes to customer service, they just called once and there was no further follow up done, they did not respond. The rate of interest was nominal when compared to other banks.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 17, 2017
    • Kotak Personal Loan
      "Good service"
      KOTAK MAHINDRA BANK
      0.5 5.0/5 "Blown Away!"
      I have applied for the personal loan from Kotak Mahindra Bank, my loan application was closed because i had an issue with my CIBIL score. The customer service was good and they responded on time, there was no issue from the bank side and they followed up regularly. The rate of interest was high when compared to others in market.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 16, 2017
    • Bank Bazaar Personal Loan
      "OK OK EXPERIENCE"
      FULLERTON
      0.5 3.0/5 "Satisfactory"
      It was a OK OK experience with Bank Bazaar i received while i applied for the personal loan . The website is helpful and user friendly as i am first time user . I checked the cibil score on the website without paying any fees that is so cool . The call came from the bank bazaar executive once after I registered for the loan process also their customer service is cool only.
      Was this review helpful? 0
      , goa
      Reviewed on Nov 15, 2017
    • ICICI Bank Personal Loan
      "Below Average service"
      ICICI BANK
      0.5 2.0/5 "Expected more"
      ICICI bank executives told that my cibil score is low but I know that I have enough cibil score to go with the personal loan and I got the personal loan from other bank. The customer support haven't gave any response in regards to my personal loan application.The response need to be improved with ICICI bank.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Nov 15, 2017
    • Bank Bazaar Personal Loan
      "Good service"
      HDFC BANK
      0.5 4.0/5 "Great!"
      I got a promotional mail from bank bazaar and that's how I came to know about bank bazaar.com. I have applied personal loan via the promotional mail. The website is easy to use and customer friendly. It is also helpful to check the cibil score.
      Was this review helpful? 0
      , rajahmundry
      Reviewed on Nov 15, 2017
    • RBL Bank Credit Card
      "FRAUDULENT BANK...PATHETIC SERVICE"
      RATNAKAR BANK
      0.5 0.5/5 "Unacceptable"
      Not providing NOC for account which I asked to close a year ago on 13nov2016 I am a happy customer of Citibank and SBI Cards. Previous year i fell in the trap of RBL.They kept on calling whole day for a mere amount of Rs. 400+ so I cleared the balance and asked me to close my service through call and mail on 13Nov2016. They blocked my account and on 15oct2017 when I tried to get a car loan... my CIBIL score was low due to this bank which says I have not paid their balance. So I went through their customer care. They apologized and said they will clear all charges and will provide me NOC so that I can get a loan but no response from their side. My loan was stuck so I was on the phone and after an hour or more i got Mr. Ravi Shukla (Supervisor) on the call and he promised me that everything will be done within three working days. Three working days all are over. I got a NOC and I was called by the ''adament'' supervisor.He tried to blame me for the whole situation.
      Was this review helpful? 1
      , new delhi
      Reviewed on Nov 13, 2017
    • Bank Bazaar Personal Loan
      "Lots of advantages"
      KOTAK MAHINDRA BANK
      0.5 5.0/5 "Blown Away!"
      Bankbazaar has so many advantages. The whole application is pretty neat and easy to use. I could see my CIBIL score and also applied for both my Credit Card and Loan. The concept of the whole idea of comparing various Bank in a single page is pretty novel.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 01, 2017
    • Bank Bazaar Personal Loan
      "Very Very good"
      HDFC BANK
      0.5 4.5/5 "Excellent!"
      As i am hope less that no bank is giving me loan because of low cibil score but you consider my application and gave me hope that i pay back my debt. feeling very helpful dont know about the result but who ever is giving you the hope is a farista thanks
      Was this review helpful? 0
      , new delhi
      Reviewed on Oct 26, 2017
    • Bank Bazaar Car Loan
      "Excellent service"
      HDFC BANK
      0.5 5.0/5 "Blown Away!"
      I have been using the website for last one year they give prompt information pertaining to loan offer or card offers.They sound helpful and willingness to give the right offer as per the need.website gives multiple information especially the cibil score.
      Was this review helpful? 0
      , mumbai
      Reviewed on Oct 24, 2017
    • Bank Bazaar Car Loan
      "Better options"
      HDFC BANK
      0.5 3.0/5 "Satisfactory"
      I am user of bank bazaar for last few months. I liked the website so much it has got required information pertaining to loan,cibil score etc.I get an immediate response from them,continue to be the same.keep up the good work and all the best for the future projects.
      Was this review helpful? 0
      , pune
      Reviewed on Oct 23, 2017
    • Bank Bazaar Car Loan
      "Good website"
      CAPITAL FIRST
      0.5 4.0/5 "Great!"
      I know bankbazaar.com from last 6 months, the services provided by bankbazaar is good when compared to all other banking websites. The customer service is good and prompt. I am using mobile application, it is easy to access and it is user friendly. I also check my CIBIL score in the mobile app.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Oct 21, 2017
    • HDFC Bank Saving Account
      "Average service"
      HDFC BANK
      0.5 1.0/5 "Really Bad"
      I am holding HDFC savings account from last 10 years, i had a good experience with HDFC bank. The banking services are also good, the only problem i had is they are not giving any loans from last 10 years because my CIBIL score is less. I use HDFC net banking for all the services i require. I also do online transfers through NEFT and there are no additional charges.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Oct 21, 2017
    • Capital First Car Loan
      "Good customer service"
      CAPITAL FIRST
      0.5 4.0/5 "Great!"
      I have applied for the car loan from Capital First, my loan application was rejected because my CIBIL score was less. When it comes to customer service, it was good and they responded well. The rate of interest is little high when compared to all other sources.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Oct 21, 2017
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