Car Loan in Jamshedpur with Quick Approval and Affordable EMIs

How to get a Car Loan in Jamshedpur with a Low Interest Rate?

While there are multiple options for car loans in Jamshedpur, you need to focus on getting a loan with the lowest possible interest rate. The good news here is that car loans are already cheaper than personal loans as they are secured against the value of the car. However, there are still many ways in which you can bring down interest rates even further. Let's check out the simple tips that can help you get the lowest possible interest rate on car loans.

1. Improve your credit score: This is the most important factor for getting competitive interest rates on any kind of loans. Lenders use credit scores to determine the risk profile of an individual. Before you apply for a car loan, you need to improve your credit score to at least 750. You can do this by following a strict financial discipline which includes making your payments on time.
2. Maintain a stable income:Lenders provide loans only to individuals who have a regular source of income. You can avail loans even if you are self-employed by showing a steady income source. Steady income indicates that you can repay the loan EMIs on time. The duration of your employment in a particular job will also influence the interest rates set by the lender.
3. Increase your down payment: There are lenders who offer you competitive interest rates if you increase your share of down payment on a car loan. You can check with the lender regarding this and make the most of a car loan. This also gives additional security to lenders as you stand to lose more in case of a default.
4. Compare the offers in the market: There are multiple lenders in India for car loans. The interest rates and other loan terms do no remain the same for these lenders. Hence, you need to compare the offers of various lenders before choosing the right one suitable for you. You can use BankBazaar website or mobile app to compare the rates of multiple lenders simultaneously.
5. Have a low debt-to-income ratio: Debt-to-income ratio refers to the percentage of income you spend on paying loan EMIs. Higher the ratio, higher the risk of default according to lenders. Hence, it is necessary to maintain a low ratio to get a good deal on your car loan interest rate. You can maintain a low ratio by clearing off your existing loans before applying for a car loan.
6. Negotiate with the lender: You may also negotiate with the lender to get a good deal on your car loan interest rate. You may use the factors listed above while negotiating with the lender for a deal. While negotiating the interest rate, it is also better to negotiate the charges associated with the loan.

Who can Get a Car Loan in Jamshedpur?

The general eligibility criteria outlined by most lenders in the market are given as follows:

*The specific eligibility criteria may change from one lender to another.

Documentation Required

1. Photo ID and age proof

1. Signed application form with photograph

1. Residence proof

1. Bank statement for at least 6 months

Documentation for salaried applicants:

1. Salary slips for at least 3 months

1. Form 16 or Income Tax Returns

Documentation for self-employed applicants:

1. Income Tax Returns for at least 3 years

1. Certified/Audited Balance Sheet and Profit

1. Loss of Account for 3 years

Things to note while applying for a car loan

You need to consider the following things while you apply for a car loan in Jamshedpur:

1. When you compare loans, it is not a good idea to go for the loan with the lowest interest rate. Make sure that the loan product is suitable for your specific needs. Check the other features of the loan and read reviews about the lender before taking a final decision.
2. Before you sign up for a loan, make sure you read the terms and conditions of the loan completely. This will help you get an understanding of the additional charges and fees associated with the loan.
3. You need to search for multiple loans in the market. However, it is not a good idea to apply for multiple loans simultaneously. You need to pick the right product and apply for one. Applying for multiple loans can have an adverse effect on your credit score.
4. You need to have the right tools while applying for a car loan. BankBazaar website or mobile application can help you find the right products by providing you with an instant comparison of all lenders in the market.

A good credit score can help you secure lower interest rates on loans and credit cards.

Get Free Credit Score