South Indian Bank Car Loan Eligibility Overview
South Indian Bank became a scheduled bank in 1946, as provisioned by the RBI Act. The Bank originated in Kerala and later gained popularity across India. It currently has a branch network approximately 829 branches and also has around 1251 ATMs across the country. SIB offers car loans to eligible customers for a broad range of cars at comparatively low interest rates and manageable EMIs.
Mobi Loan offered by South Indian Bank, is custom-made for a borrower and is also offered at attractive interest rates. The Bank has a transparent car loan processing system and clearly lays down the terms and conditions of availing the loan, making it uncomplicated for the borrower to calculate his/her overall expenses in taking a car loan. The purposes for which South Indian Bank offers car loans are: for purchase of a car for personal use/ agricultural use, or for buying commercial vehicles.
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Eligibility Criteria for Car loans from South Indian Bank
In order to be eligible for a South Indian Bank Car Loan- Mobi Loan- the following criteria has to be met by the applicants:
- Salaried individuals: All employees of the State/Central Govt, IT Companies, MNCs, etc. are eligible
- Businessmen and other self-employed individuals are eligible to apply for a car loan from the Bank.
- The income criteria for Professionals is Rs.60000/- (net monthly income). Those who meet this prerequisite are eligible to apply for a SIB Mobi Loan.
- NRIs: Non Resident Indians are also eligible to apply for a car loan. They can apply either individually or jointly with his/her resident spouse.
- Agriculturists: Individuals whose main source of income is earned through agricultural sources, is also eligible for the South Indian Bank Car Loan.
- Senior Citizens, Pensioners, High Networth Individuals (HNIs) without pension are also eligible.
Factors Affecting South Indian Bank Car Loan Eligibility
Several factors play a determining role in getting your car loan approved. There are many important factors that are to be considered at the time of application that will help you to understand your chances of getting a car loan approval from South Indian Bank:
- Your credit history is the first thing a bank checks when you apply for a car loan. The credit history reflects whether you are creditworthy and whether you won’t default on the loan in the future. If all your payments are made properly and there are no dues pending, your credit score will be high. This reflects in your CIBIL score- a high CIBIL score ensures that your chances of getting a car loan approval is high.
- The debt-to-income ratio is another determining factor. The Bank will analyse your net worth in terms of income earned, and compare it against your debts. This can help the bank to understand your repayment capacity.
- Another important component in determining your car loan eligibility is the amount of loan you have requested as well as the loan margin paid by you. If you pay a lumpsum amount as downpayment, this reduces the need for a higher loan amount and thereby decreases your loan burden. Also, banks tend to approve smaller loan amounts faster since the repayment is easier and has less liabilities.
- If you have opted for a shorter loan tenure the chances of getting a loan approval is high. The reason behind this is that, a shorter duration signifies quicker car loan repayment and hence, the loan approval process will be favorable to the applicant.
- Age criteria is another important matter even though age limits are kept to determine loan eligibility set for car loan applicants. Applicants who fall close to the maximum age limit by the time of loan maturity, have lower chances of getting their loan approved. However, if these applicants have chosen for a short loan tenure, the probability of a favourable loan approval is high.
How to increase your South Indian Bank Car Loan Eligibility
You can increase your South Indian Bank Car Loan (Mobi Loan) eligibility by keeping a few important factors in mind. By effectively ensuring that your credit history is good and your dues are paid, as well as by showing a stable source of income, you can increase your car loan eligibility. In order to be creditworthy, an applicant must have a good CIBIL Score. Your CIBIL score will reflect well on your loan application process and in order to ensure this follow a few simple steps:
- Pay all your dues in a timely manner.
- Check your Joint accounts and accounts/transactions you are a guarantor in and make sure there are no defaults made.
- Have a combination of both secured and unsecured loans - this will reflect positively on your credit report.
- If you are a co-signatory to a loan or any other credit, make sure that you review such accounts frequently. Any defaulted payments in such accounts will reflect on your credit score poorly as well.
- Having a reliable guarantor with a good status and net worth can increase your chances of a car loan approval.
- If you have a proper collateral or security to pledge in the bank in exchange of the car loan offered, you can increase your chances of getting the car loan approved in your favor.
South Indian Bank Car Loan Eligibility Calculator
If you want to make sure whether or not you are eligible for a car loan from South Indian bank, you needn’t waste any time and effort. Online Car loan eligibility calculator tool is the simplest solution to this dilemma. The car loan eligibility calculator would assist you in understanding the eligibility criteria and all you have to do to find out your eligibility is to key-in the information asked for in the questionnaire. This tool is convenient and easy to use as well as gives you results in an instant! The details to enter in the car loan eligibility calculator includes choice of car/model, price of the car, your date of birth, income, type of employment (salaried/self-employed), etc. and click on “calculate”. The tool will then project your eligibility for the loan, the loan amount and tenure that you are eligible for, etc.