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

    How to Increase Your Car Loan Eligibility?

    Be it a short-distance or long-distance travel, having a car of your own can be very convenient. From commuting to the office on weekdays to going on long road trips on weekends, with a car loan you can purchase a car of your choice to meet your traveling needs. Imagine not having to put up with the hassle of accessing public transportation, expensive private cab hires or the cost of damages to a rental car. Auto finance is available for the purchase of most makes and models of passenger and commercial vehicles in the Indian market.

    Whether you wish to buy a new car or a used car, given the rise in prices of passenger cars across top carmakers this year, it is not surprising that consumers are leaning towards auto financing to realise their automotive dreams. To purchase a car of your choice, you can apply for a low-interest rate new car loan or used car loan from a reputable lender. To be eligible for a car loan from a bank or a non-banking financial company (NBFC), there are 3 major factors that one should consider - minimum annual income requirement, a stable occupation, and a credit score of 750 or above.

    What is the Car Loan Eligibility Criteria?

    To apply for a car loan, the applicant must meet the following eligibility requirements:

    • Age criteria: Any individual aged between 21 to 65 years (he or she must not be more than 65 years of age at the time of loan maturity).
    • Income criteria: In the case of a salaried individual, his or her (and a co-applicant's) minimum net annual income must be Rs.3 lakh or above. A self-employed applicant's net annual income must be minimum Rs.4 lakh.
    • Work experience requirement: The applicant must have minimum 2 years of work experience in his or her field.
    • Credit score: Having a credit score of 750 or above can help you get a low-interest rate car loan as the credit score represents the creditworthiness of the applicant.

    The maximum loan amount that a self-employed or salaried applicant can apply for depends on his or her annual/monthly income.

    Why is it Important to Check your Car Loan Eligibility?

    Before applying for a car loan, it is advisable to check your car loan eligibility so as to avoid loan rejection. Multiple loan rejections will definitely have a negative effect on your credit score. At the time of processing a car loan application, lenders check the credit score and credit report of the applicant. Too many loan rejections, outstanding dues, and bankruptcies in one’s credit report serves as red flags to the lenders. Banks and NBFCs will hesitate to lend car loan to applicants with a bad credit report. Also, applying for multiple loans at the same time indicates financial desperation on the part of the applicant. That is why, it is better to check whether you meet the car loan eligibility criteria of your chosen lender before applying for a car loan.

    How to Check Car Loan Eligibility?

    Car loan eleigibility criteria differs from lender to lender. After picking a reputable lender, visit the official website of the bank or NBFC to check your car loan eligibility online. For each type of car loan - new car loan, used car loan, and loan against car, the eligibility criteria varies. The online car loan eligibility calculator is easy and simple to use. All you have to do is enter the make and model of car, your age, income, and occupation. Click on the 'calculate' button and get an instant result.

    How to Improve your Car Loan Eligibility?

    What happens if after checking your car loan eligibility online, you find out that you aren’t eligible for a car loan? Make a note of the type of requirement (age, credit score or income requirement) that you are lacking in and work at improving your car loan eligibility. Here are a few valuable tips on increasing your car loan eligibility:

    • Opt for pre-approved car loans: Lenders compete with each other to provide better services to customers in the form of minimal paperwork, instant loan approval, and loan disbursal in an effort to attract and retain them. Banks offer pre-approved car loans to existing customers. If you apply for a car loan at a bank that you are already banking with, then you don’t have to worry about exhaustive paperwork or delay in loan approval.
    • Maintain a low debt-to-income ratio: A low debt-to-income ratio is one wherein the loan EMI payments must not exceed more than 50% of your income. The debt-to-income ratio is used to analyse an applicant’s loan repayment capacity. Therefore, it plays a major role in increasing your car loan eligibility.
    • Maintain a good credit score: As previously mentioned, an applicant’s credit score is another factor that affects his or her car loan eligibility. To improve your credit score, maintain a balance between secured and unsecured loans, make credit card bill payments and EMI payments on time, don’t preclose car loans before loan maturity, don’t default on any (personal, car or home) loan.
    • Make a high down payment: If the applicant is willing to make a high down payment on the car of his or her choice, the chances of car loan approval are higher.
    • Choose a suitable loan tenure: A short loan tenure means higher EMI payments and lower interest payments whereas a long loan tenure means lower EMI payments and higher interest payments. Use an online car loan EMI calculator to help choose a suitable loan tenure. The chances of car loan approval are higher for short loan tenures.
    • Opt for a co-applicant: Ensure the co-signer or co-applicant has a good credit score and annual/monthly income. Having a co-signer serves as a guarantee for your car loan repayment. Thus, increasing the chances of car loan approval.

    Apply for a car loan amount that you can afford to repay. An applicant’s car loan eligibility helps the lender determine the maximum loan amount, interest rate, and tenure. Visit a reliable third-party comparison website to compare various car loan offers and choose one that offers a low interest rate, zero processing fee, a suitable loan tenure, and flexible repayment options.

    Customer Reviews

    • ICICI Bank Car Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been holding my car loan with ICICI bank for long time, they have given me sufficient loan amount, and they have charged me nominal rate of interest in this loan , they have charged me up to 8.85% .And they have charged processing fee in this loan ,they have charged me up to 2000 rupees, overall experience was too good in this bank.Still the loan is running.
      Was this review helpful? 1
      , new delhi
      Reviewed on Jan 22, 2019
    • SBI Car Loan
      "Car loan with lowest interest rate and easy repayment"
      0.5 5.0/5 "Blown Away!"
      I have bought my car loan from State bank of India. I have done the pre-closure and they have not charged anything extra money for that. I have got the loan in the year of 2018. They have provided me a car loan with the percentage of 9.25% and the documentation process was very easy.
      Was this review helpful? 0
      , thiruvananthapuram
      Reviewed on Jan 22, 2019
    • HDFC Bank Car Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      The process in getting this Car loan was quite good and the loan amount which they had provided has been sufficient as well. The interest rate with them has been nominal when compared with the market rate and the charges which they had made has also been nominal as well. Their customer support team had also been helpful as well.
      Was this review helpful? 0
      , guwahati
      Reviewed on Jan 22, 2019
    • Bank Bazaar Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have recently started using the services of Bank Bazaar to get my Car loan, and the process was simple. I came across their services while i was going through the internet and i had downloaded their mobile application which has a very good user interface. Their customer support team had also been responsive and was helpful at times.
      Was this review helpful? 0
      , goa
      Reviewed on Jan 22, 2019
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I had chosen my Car loan from them since i was holding my Salary account from them. The process in getting this loan has been simple and the documentation was also simple. The loan amount has been sufficient and they had charged with an interest rate of 9.5% which is nominal with the market rate. The processing fee with this loan has also been nominal.
      Was this review helpful? 0
      , goa
      Reviewed on Jan 22, 2019
    • Capital First Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The experience with my Car loan from them was quite good where the process has been simple. The loan amount has been sufficient and the interest rate with them has been nominal when compared with the market rate. There has not been any sort of charges which they had been making and the processing fee was nominal. Their customer support team had also been helpful as well.
      Was this review helpful? 0
      , bhubaneshwar
      Reviewed on Jan 22, 2019
    • Bank Bazaar Car Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      The experience i had with Bank Bazaar has been quite good and it was nice. They had been helpful for getting Personal loam, Home loans, Car loans and i had been using the mobile application of them which has been convenient in using. I had come to know about the services of them through advertisements and through my friends.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jan 22, 2019
    • ICICI Bank Car Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      The process in getting loan was quite easy and smooth where it was not lengthy and they had collected the documents at the doorsteps. The loan amount which they had provided has been sufficient and the interest rate with them has been less when compared with the other banks. The charges which they had made has been nominal as well. Their customer support has also been responsive and was helpful.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jan 22, 2019
    • Bank Bazaar Car Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      It has been a good experience with Bank Bazaar while i was getting Car loan through them, i had been using the services of them for the last six months. I came to know about them through internet and i had used their website which has been convenient as well. Their customer support has also been responsive and has been helpful.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jan 21, 2019
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The process was easy in getting the car loan from them and the loan amount was sufficient as well. The interest rate with them was nominal when compared with the market rate and the charges which they had made where also nominal. Their customer support also was helpful and i had not faced any issues.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jan 21, 2019
    • Bank Bazaar Car Loan
      "24/7 available bank service"
      0.5 5.0/5 "Blown Away!"
      To approach the bank for my car loan is very difficult for me. I have done the documentation through online. I got the car loan with the minimum effort because with the help of bankbazaar. I was searching the various products like mutual funds, loan and i have been checking the bankbazaar website for all kind of financial product. I go through this website for any kind of investment plan.
      Was this review helpful? 0
      , thiruvananthapuram
      Reviewed on Jan 21, 2019
    • HDFC Bank Car Loan
      "Easy and affordable car loan"
      0.5 5.0/5 "Blown Away!"
      It was available with the car loan with the minimum documentation hence i have selected the HDFC bank for my car loan. I have got the interest rate of 9.5% and I'm satisfied with the. At the amount of Rs. 2500 they have charged as a processing fee. They have sanctioned the loan time.
      Was this review helpful? 0
      , thiruvananthapuram
      Reviewed on Jan 21, 2019
    • Bank Bazaar Car Loan
      "Its Excellent"
      0.5 4.5/5 "Excellent!"
      I just explored about the car loan offers through Bank Bazaar. I got best deal from ICICI bank, then I selected that option. Bank Bazaar executive called me connected with the bank on time without any hassles or without approaching anyone i had received the loan on time.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 21, 2019
    • Bank Bazaar Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I am using the services of Bank Bazaar for the last three years and whenever i go in Google to check any financial products where i had come to know about the services of Bank Bazaar. The process in getting my car loan through them was very simple and everything was done online. Their customer support has also been responsive and had a good communication.
      Was this review helpful? 0
      , gorakhpur
      Reviewed on Jan 21, 2019
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 4.0/5 "Great!"
      I had chosen to go with them since it would be easy in getting a loan through them. The process had went well and the loan amount which they had provided has been sufficient as well. The interest rate with them has been nominal when compared with the market rate. The charges which they had made has also not been high.
      Was this review helpful? 0
      , gorakhpur
      Reviewed on Jan 21, 2019
    • Bank Bazaar Car Loan
      "Its Customer friendly"
      0.5 5.0/5 "Blown Away!"
      One place to find all the financial banking offers and also I would say its easy to identify the best product. More over the site is nice to upload the documents for the loan products rather approaching the bank. Its a time saving website, the response is good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 21, 2019
    • HDFC Bank Car Loan
      "Recommendable car loan"
      0.5 4.0/5 "Great!"
      My salary account belongs to HDFC bank, hence I thought go with the same bank for the car loan. I hope the interest rate is less for me and also paper work became very easy. Even my car loan got sanctioned within 3 to 4 days then I have purchased Tata Tiago car.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 21, 2019
    • Bank Bazaar Car Loan
      "Good service"
      0.5 4.0/5 "Great!"
      The experience with Bank Bazaar has been quite good and i had started using the services of them for the last couple of months. Everything has been done online which was easy and convenient. I had used their mobile application which has a very good user interface. Their customer support has also been responsive and was helpful.
      Was this review helpful? 0
      , aurangabad
      Reviewed on Jan 21, 2019
    • HDFC Bank Car Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The process in getting this loan was quite simple and easy and the loan amount which they had provided has also been sufficient as well. I had chosen to go with them since the charges where very less with them as well as the interest rate which they where offering has been less when compared with the market rate which was around 9.2%. The customer support team of them has also been helpful at times.
      Was this review helpful? 0
      , aurangabad
      Reviewed on Jan 21, 2019
    • Bank Bazaar Car Loan
      "Good website"
      0.5 4.0/5 "Great!"
      Bankbazaar is good website and the overall process was easy. One of my friend has suggested me about the bankbazaar website. This is my first experience with bankbazaar. I have checked my credit score through bankbazaar website recently.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 21, 2019
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